• Sun. Jun 16th, 2024

Green Battery Minerals: A Deep Dive

The electric vehicle (EV) revolution represents one of the most attractive current investment themes and we do not expect this to change anytime soon.

From an increasing amount of EVs on the road to the rising demand for EV components, the growth of the vertical has resulted in the creation of several massive sub-sectors. We have been focused on identifying operators that are levered to the EV market and want to a highlight a business that is flying under the radar. 

The company is focused on the graphite market and we are bullish on this industry. One of the main applications of graphite is for the production of anode material for batteries, in particular for lithium-ion batteries powering EVs. It is important to note that by weight, graphite is by far the largest constituent of Libs, ranging from 28-44%, with lithium only slightly over 3%. 

Graphite has been categorized a critical mineral by both the U.S. and Canadian governments, meaning it is deemed of critical importance to have domestic production, especially considering that today’s market is dominated by less friendly jurisdictions, such as China and Russia. With an increasing number of governments demanding the phasing out of fossil fuel-based combustion engines, the market for car batteries is expected to record explosive growth. 

Consequently this anticipated growth, it is projected that the world needs 97 new graphite mines to meet demand in the coming years. What’s more. Only certain types of graphite are suitable for anode materials, and the Company we are focusing on has one of the highest quality deposits in the world.

What You Need To Know About Green Battery Minerals

Green Battery Minerals Inc. (TSX-V: GEM) (FSE: BK2P) (WKN: A2QENP) (OTC: GBMIF) is a Canadian junior miner that is highly focused on mining high-value metals. The company has a diversified platform and is focused on several key minerals from strategic locations. 

Currently, Green Battery is focused on two main projects and these are:

  1. The Berkwood Graphite Project – The project is located within the exploration friendly jurisdiction of Quebec, in the Manicouagan regional county municipality. The project can be easily accessed and represents a major growth opportunity for the business. So far, the initial data has been favorable and we believe the project offers considerable upside potential.
  • Stallion Gold Property – The project is located in British Columbia’s famous Golden Horseshoe region and is contiguous to Benchmark Metals’ Lawyers gold and silver project. The project is in a proven and profitable mining jurisdiction and is only 28 km northwest of the past producing world class Kemess gold-copper mine. We are favorable on the location of the property and will monitor how this aspect of the story advances from here.

Announces A Major Transaction 

Green Battery Minerals recently announced plans to expand further into critical minerals market through the acquisition of a promising lithium property in Quebec. We are favorable on the direction the business is heading and expect the transaction to prove to be accretive for the business.

The property is located within the La Grande geological sub-province and is near the boundary with the Opinaca Sub province. We find this to be significant because the property is located in a region that is known for having favorable host rock structures. 

So far, up to 33 pegmatite occurrences have been identified by government mapping that was completed over the property. The acquired claims are located over regionally elevated lake bottom sediment geochemical anomalism for lithium.

We believe the location of the property de-risks the project for Green Battery and consider this to be an undervalued aspect of the business. Over the next few months, we expect to receive several updates from the company and will monitor how this aspect of the story advances in the near-term.

Disruptive innovation

Earlier this year, Green Battery announced it was working on the development of a graphene based battery. This is a potentially disruptive move that will see the stock move into a higher value add segment of the market.

To date, GEM graphite was successfully used to produce graphene, which was used for the successful production of a prototype lithium-ion batteries (LIBs), which is significant.

Graphene has potentially disruptive qualities as compared to LIBs that are based on graphite. Some of the disruptive qualities include, but are not limited to the following:

  1. Longer battery life
  2. Faster charging speed
  3. Higher electrical conductivity/density
  4. More Power
  5. Lower Cost
  6. Lower weight and therefore larger range

With range, costs and charging times key performance indicators, it is clear to see how graphene can disrupt the LIB space, and GEM is well positioned to capitalize on this development.

Focused on Not Compromising its Strict ESG Guidelines

The company has already completed initial test work on the LIBs that were created, and Green Battery reported that the process used to extract and convert the graphite was successful in producing Environmental, Social, and Governance (ESG) friendly LIBs. Being able to sustainably and viably extract graphite from the Berkwood deposit is a major milestone, especially considering the high anticipated capex for other projects looking to supply the graphite market.

Furthermore, the sustainable credentials of GEM will curry favor with its end customer base, as buyers are increasingly influenced by sustainability criteria.

Why You Need To Be Aware Of The Berkwood Project 

We are excited about the Berkwood project opportunity. So far, less than 10% of the property has been explored, and the reported findings have been significant with the inferred and indicated resource showing over 3 million tonnes of high-quality, high-purity graphite resource (500kt on a pure Cg basis)

Going forward, Green Battery plans to pursue downstream diversification to achieve higher prices and margin by moving into the purification, sphericalization, and coating of its graphite, as well as the aforementioned graphene initiative. These end products are in high demand for LIB anode material, the backbone for EV and storage batteries.

When analyzing the data, the economics of downstream diversification are very attractive and want our readers to be aware of the incremental value that can be created for the business. According to data from Roskill, the graphite increases considerably based on type and costs can be as much as:

Price of Natural Large Flake Graphite: $2,000 per ton*

Price of Natural Sphericalized Large Flake Graphite: $3,000 per ton**

Price of Natural coated Sphericalized Large Flake Graphite: $7,500 per ton**

*(Roskill : https://www.mining.com/spherical-graphite-producers-impacted-by-low-demand/)

** (Roskill: https://roskill.com/news/graphite-haida-new-energy-material-to-begin-coated-spherical-graphite-production/)

** Roskill: The average value of Chinese exports of mostly uncoated spherical graphite was US$3,152/t in 2019, but China’s much smaller imports of mostly coated spherical graphite was US$7,157/t, although prices may reach in excess of US$20,000/t with some coatings.

Another reason for our bullish view on Green Battery is related to the management team’s vision for the business. The leadership team has laid out milestones for the business and we are favorable on the direction the business is heading. The goals for the business in the near and longer-term are:

  1. Prove out batteries and produce the preliminary economic assessment (PEA)
  2. Pursue offtake agreements while gearing up towards production
  3. Mine development
  4. Graphene initiative
  5. Expansion into other critical minerals

Led by a Management Team That is Focused on Execution 

When it comes to analyzing any mining company, we first analyze the leadership team to better understand the people who are responsible for executing. Green Battery is led by a management team with a proven track record of success in several highly-regulated industries and we are favorable on the team’s collective expertise.

At the helm is President and CEO Thomas Yingling. With more than 2 decades of expertise in the public markets and junior mining space. Mr. Yingling has assembled a team with decades of experience in discovery and mine development. Between them, the team has successfully identified, developed and operated 15 mines across the globe, deep experience that will be critical in taking GEM to the next level.

A Stock With Considerable Upside Potential 

Another reason for our bullish outlook on Green Battery is related to valuation of similar operators that are in a more advanced stage. For example, Nouveau Monde Graphite has fully explored its property, is moving into production mode, and is valued at more than $400 million (as of February 2023). Green Battery is valued at less than $10 million (as of April 2023).

Based on Nouveau Monde Graphite’s trajectory, we believe that Green Battery has a considerable amount of upside potential. We believe that the Company, based on the high-quality of its deposit, the fact it is already sitting on a significant resource with less than 10% of its property explored, its success in purifying its graphite and converting it into graphene, show that the Company has very significant upside potential. 

Over the next year, we expect Green Battery to report a series of major developments and believe that positive data from its projects could prove to be the catalyst for the stock to break out. At current levels, we believe that Green Battery has a compelling valuation and a favorable risk-reward profile. We consider Green Battery to be a company with significant potential growth catalysts and want our readers to be aware of the business. 

Company Relationship Disclosure

OTB is responsible for the OTB opinions provided in this disclosure except all sources or information provided by other parties were not verified or authenticated and OTB does not undertake to confirm or substantiate or be responsible for such information provided by other parties.

Any Content posted regarding a Profiled Issuer is not a solicitation or recommendation to buy, sell or hold securities. We cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. All information should be independently verified. We are not responsible for errors or omissions in our publications, and any opinions expressed are subject to change, without notice. We do not, nor are we under any obligation to undertake due diligence or investigation or authenticate and verify whatsoever regarding Profiled Issuers or any Content posted in relation thereto and we do not receive any verification from the Profiled Issuer regarding the Content we disseminate. Similarly, while we endeavor to facilitate the provision of quality information, we are not responsible for any loss or damages caused or alleged to have been caused by its use nor verify or authenticate or update such information.

Pursuant to an agreement between Spotlight Media and Green Battery Minerals we have been hired for a period of 90 days beginning April 30, 2023 and ending July 30, 2023 to publicly disseminate information about Green Battery Minerals including on the Website and other media including Facebook and Twitter. We are being paid $3,500 per month by Green Battery Minerals and were paid “ZERO” shares of unrestricted or restricted common shares. We plan to sell the “ZERO” shares of Green Battery Minerals that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of Green Battery Minerals in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects”, “does not expect”, “is expected”, “believes”, “intends”, “anticipates”, “does not anticipate”, “believes” or variations of these words, expressions or statements, that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, state, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company’s facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal, state and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company’s limited operating and profitability track record; dependence on management; the Company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better funded competitors; the impact of the Russia-Ukraine conflict on the global economy; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual measures, events or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws

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