After finalizing its business combination agreement with Strategic Minerals Corp., IberAmerican Lithium Corp. plans to resume production at Strategic Penouta’s flagship project in Spain. One analyst says it's a great time to examine the company's stock.
IberAmerican Lithium Corp. (IBER: CBOE; IBRLF: OTCQB) announced that following the finalization of its business combination agreement with Strategic Minerals Corp., it plans to resume production at Strategic's flagship Penouta Project in Spain.
IberAmerican also announced a proposed merger with its wholly-owned subsidiary, IberAmerican Resources Inc., as well as a proposed name change from IberAmerican Lithium Corp. to IberAmerican Resources Inc.
“Once completed the proposed transaction, we intend to quickly resume production in Section B, generating immediate cash flow,” said Campbell Becher, CEO of IberAmerican. “At the same time, we are committed to making essential capital investments to strengthen production efficiencies, laying the foundations for the reactivation of operations in Section B. The vast Penouta resource within Section C later this year . As we approach the completion of the proposed transaction, we are assembling a talented team of technical and marketing experts. Our goal is to harness the full potential of this remarkable green earth resource and extract maximum value for our stakeholders.
Strategic is a distressed asset that was a “gift,” Becher said. “There are a ton of opportunities here, with real simple solutions.”
Becher said his team plans to return the mine to regular production of tin and other metals, which could be an important catalyst for the company.
“Telling investors you have a cash flow asset is a different story than telling investors you have a drilling business that has no cash flow, it's a cost center and not a revenue center,” Becher said. “So we’re also looking to build revenue centers here.”
“With a considerably clearer and brighter picture for IberAmerican, we remain long, and this is considered a good point to buy or add positions,” wrote technical analyst Clive Maund.
Technical Analyst Clive Maund written on the date of this article that although he recommended the stock for fundamental and technical reasons on March 11, “the recommendation was a little too early as it subsequently fell to a lower level before completing its oddly cup-shaped base and of handle”.
“Yet the basic idea was correct, as last week it improved relative to trend due to the company's fundamental situation rapidly improving,” Maund wrote.
The remaining hurdle before the stock is no longer free to advance is the resistance shown at the upper limit of the entire pattern, he noted.
“With a considerably clearer and brighter picture for IberAmerican, we remain long, and this is considered a good point to buy or add positions,” Maund wrote.
The catalyst: elements for the energy transition
On its website, Strategic says it mines tin, tantalum and niobium.
Tin is a key industrial metal used for everything from solder to alloys, including in electric vehicles (EVs). The metal market size is estimated at 418.4 kilotons in 2024 and is expected to reach 475.46 kilotons by 2029. according to Mordor Intelligenceat a compound annual growth rate (CAGR) of 2.59%.
“Tin is used in the electronics industry as solder and is often used in various purities and alloys, usually with lead and indium,” Mordor noted. “Approximately 50-70% of the total tin produced is used in the electronics and electrical industry in various products, such as mobile phones, tablets, computers, watches, clocks and other consumer electronics .”
Tantalum And Niobiumalmost always found together, are both considered critical technological elements by the European Union.
Becher said there are other potential sources of income from the mine's industrial minerals.
“We have quartz, mica and feldspar, all of which are highly sought after in Spain and which we haven't even talked about,” Becher said. “What are we going to do with these assets?”
Lithium itself is essential to the clean energy transition sought around the world. Battery storage using the element will be “critical” in reducing the carbon footprint globally, according to Energy5.
The metal market is expected to grow from US$2.5 billion in 2023 to US$6.4 billion by 2028, at a compound annual growth rate (CAGR) of 20.4% from 2023 to 2028, according to a report. Markets and Markets report.
Citing demand for use in electric vehicles and battery storage as key drivers, Search Katusa predicts that the lithium market could see a major breakthrough this year.
“The lithium opportunity is more electric than ever,” Katusa wrote.
Shareholding and sharing structure
Reuters provided an ownership breakdown and shareholder information for the company, where management and insiders own approximately 13.01% of the company.
According to Reuters, independent director Miguel Angel de la Campa owns 5% of the company with 5.48 million shares, CEO Becher owns 4.18% of the company with 4.58 million shares, Chairman Eugene C. McBurney owns 3.88% of the company with 4.25 million shares. , and independent director David Young owns 0.18% of the company with 0.20 million shares.
Around 27.86% of the company is owned by institutional investors.
Delbrook Capital Advisors Inc. owns 17.81% of the company with 19.50 million shares, and Brockville International Holdings Ltd. owns 10.05% of the company with 11.00 million shares.
Reuters reports that there are 109.5 million shares outstanding and 84 million floating shares traded, while the company has a market capitalization of CA$19.16 million and trades on a 52-week range ranging from CA$0.07 to CA$0.40.
You want to be the first to know about interesting things Base metals, Battery metals, Cobalt / Lithium / Manganese And Critical metals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. |
Subscribe |
Important Disclosures:
- IberAmerican Lithium Corp. maintains a consulting relationship with an affiliate of Streetwise Reports and pays a monthly consulting fee of between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their households) own securities of IberAmerican Lithium Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and does not constitute a solicitation for any investment. Streetwise Reports does not provide general or specific investment advice and the information contained in Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult their personal financial advisor and conduct their own comprehensive investment research. By opening this page, each reader agrees to Streetwise Reports' terms of use and full disclaimer. Streetwise Reports does not endorse or recommend the activities, products, services or securities of any company.
For additional information, please click here.