In June 2018, the world's largest producer of EV batteries, Contemporary Amperex Technology Ltd (CATL) had an IPO on the Shenzhen Exchange - raising a record $852 million. Since then, CALT's share price has increased by 214.9% giving it a current market cap of more than $25 BILLION!
Leading up to the opening of Tesla (TSLA)'s U.S. Gigafactory in Nevada, NIA announced its #1 favorite lithium and cobalt stock suggestions that it believed were best positioned to capitalize on the Gigafactory's success. Both of these companies had projects located in close proximity to TSLA's Gigafactory. Amazingly, they were both acquired this year at valuations that were more than 5X higher than their initial market caps when NIA suggested them!
Lithium-X initially gained by 193.81% within only 1 month of NIA's suggestion! The company was acquired this year for $257 million in cash or more than 5X its market cap of $50.7 million at the time of NIA's initial suggestion!
U.S. Cobalt initially gained by 96.67% within only 1 month of NIA's suggestion! The company was acquired this year in a stock deal worth a reported $149.9 million or more than 5X its market cap of $28.5 million at the time of NIA's initial suggestion!
TSLA's Gigafactory has been a major success, driving TSLA to $831.52 million in positive 3Q 2018 free cash flow vs. -$1.545 billion in negative 3Q 2017 free cash flow. European automakers are taking notice with BMW announcing that it will have 25 plug-in vehicles in its lineup by 2025! BMW sells nearly 2.5 million cars per year and by 2025 it expects between 15% and 25% of its vehicles sold to have an electric drivetrain!
To support this growth, BMW on July 9, 2018 announced a $4.7 billion deal to source EV batteries from CATL. As part of this deal, BMW will finance the construction of a massive CATL battery factory in Erfurt, Germany with annual production capacity of 14 GWh (CATL sold 11.84 GWh in all of 2017). Construction of the factory will begin next year and BMW will be helping CATL secure cobalt supplies from local sources!
The former CEO of U.S. Cobalt, Wayne Tisdale, after selling U.S. Cobalt earlier this year at a HUGE premium - has just launched a new company that could be perfectly positioned to help supply cobalt to BMW’s principal supplier’s planned factory in Erfurt. The company is Declan Cobalt (CSE: LAN) currently trading for only $0.285 per share. Wayne Tisdale is CEO of LAN and the company has just acquired the rights to the Tisová cobalt project comprising 15,929 hectares in both Germany and the Czech Republic - less than 150km from several EV battery plants, including the planned BMW/CATL Erfurt factory.
LAN in August 2018 raised $2,820,500 in a private placement through the issuance of 11,282,000 units at $0.25 per share. With Wayne Tisdale as the company's CEO, we don't expect LAN to have any problem raising additional funding. Prior to his successful sale of U.S. Cobalt, Wayne Tisdale was behind the formation of Rainy River Resources, taking it from $0.25 per share in 2005 up to $13 per share in 2011 where it reached a peak market cap of $1.2 billion - before later being acquired by New Gold.
Just this week, the German government announced that it is investing 1 billion Euros to help support the production of EV battery cells within Germany. Click here to see for yourself! LAN is perfectly positioned to capitalize on the upcoming explosion in demand for locally sourced cobalt within Germany! With only 42,698,031 shares outstanding, LAN's current market cap at $0.285 per share is an insanely low $12.2 million!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from LAN of $30,000 cash and expects to receive an additional $20,000 cash for a 1-month investor relations contract. NIA previously received total compensation from USCO of $100,000 cash for investor relations contracts. NIA previously received compensation from LIX of $40,000 cash for an investor relations contract. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.