2 min read

$PMET

Canadian lithium miner.

Financials (USD):

  • MC 319M, 245M
  • Rev / net income / cash flow: NA, feasibility stage.

Management:

  • Legendary CEO Ken Brindsen from Pilbara, who moved from Australia to Canada to lead the development. He took Pilbara through development from 250M to 16B MC.
  • CEO has options for 1 million shares at $7 CAD and $9 CAD – provide targets in a follow the money thought process. Expiry August 2026.

Thesis:

  • Canadian mine will be largest in the Americas, and 8th largest in the world.
  • Currently lithium spodumene 6% price in the $600 range.
  • PMET base case is $1500 long term, is this fair for mid cycle???
  • Counter cyclical opportunity on price.
  • Feasibility stage is typically a price downswing for any producer until development starts on Lassonde curve (middle down below). This can last for years. Construction expected in 2028 / production 2029 so this may take significant time. Feasibility study estimated completion Q3 2025.
  • Volkswagon bought 10% at $4.50 CAD. Their first ever mining investment.
  • Rare element finds, cesium found on property, at rare scale. Also, 4th largest tantalum deposit in the world.
  • BESS optionality: Battery storage increasing lithium demand outside of auto. Thought to be something not all investors are watching.

Upside potential:

  • 10x, back to prior highs. We are in the feasibility downslope at same time as a commodity pullback. Double double counter cyclical in a way. Chart below shows at 1500$/ton price its a 3B present value on the mine. 12x from here.
  • Premium for North American?
  • Cesium find, value add. Tantalum value.

Track prices: https://x.com/LithiumPriceBot

Risk/downside potential:

Decision: Purchase entry level position, with plan to add more.

Paul Weaver

Charlotte, NC