October 26, 2011
The Energy Report: Thank you for joining us this afternoon, Jonathan. You have a technical background in engineering and manufacturing in addition to your experience as an analyst. This gives you a unique perspective in evaluating investment opportunities. What do you look for specifically in a lithium company?
Jonathan Lee: Numerous factors. Our strategy is to find low-cost producers within a sector. Then from a capital cost side, it’s always more beneficial to have a lower capital cost to get a better return on equity and make the project more feasible. We like to have low capital expenditures and operating expenditures. Beyond that, it really comes down to valuing the company and trying to make sure that the equity is purchased at the right price. The two major factors that contribute to a better return on equity are good assets and low costs.
October 6, 2011
Nemaska Exploration (OTCQX: NMKEF; TSX-V: NMX) is featured on BTV in which the Company discusses its lithium projects and unveils its plans for becoming the lowest cost, highest quality producers of lithium in North America. Click on the picture below to view the video.
August 22, 2011
Nemaska Exploration Inc. (TSX-NMX and OTCQX: NMKEF) recently made available a very cool 3D virtual tour of their 100-per-cent owned Whabouchi Lithium project in the James Bay area of Northern Quebec. The Whabouchi lithium deposit is known to be one of the largest resources of its kind in the world (M&I resources of 25-million tonnes at an average grade of 1.54 per cent lithium).
Nemaska is pressing forward with an aggressive development plan for the Whabouchi property. Permitting began in the summer of 2011. Engineering, ground preparation, the ordering of large equipment units and construction activities will begin in 2012.
Having already secured a $3.7-million private placement deal with the Chengdu Tianqi Industry Group, (Chengdoo Shiangqi) owner of the largest lithium battery chemical producer in China, Nemaska plans to start production of the mine in 2013.
This 3D Virtual Tour is extremely well done and gives the viewer a very good understanding of the economics and upside potential at Whabouchi.
June 28, 2011
Merriman Capital, a wholly owned subsidiary of Merriman Holdings, Inc. (NASDAQ: MERR), today announced that it will serve as the Principal American Liaison (PAL) for Nemaska Exploration Inc. (OTCQX: NMKEF; TSX-V: NMX) as it begins trading on OTCQX.
According to Guy Bourassa, President and CEO of Nemaska Exploration, “Our decision to trade on the OTCQX was an important step in expanding our exposure to North American investors. Our focus remains firmly on bringing our lithium project into production in the near term, while realizing value for our shareholders.”
June 10, 2011
Nemaska Exploration (OTC Other: NMKEF; TSX-V: NMX) spinout, Monarques Resources, has completed its IPO offering of $6 million as follows: (i) $4 million $0.50 via flow through shares and (ii) $2 million at $0.40 with a 1/2 warrant exercisable at $0.45 until December 10, 2012. Shares of Monarques Resources are expected to begin trading on the TSX Venture Exchange on June 14th under the ticker symbol MQR.
As part of the spinout, Monarques issued to Nemaska 18.75 million shares in exchange for the rights, titles, and interests to Nemaska’s non-lithium properties. Following the financing, there are a total of 31.75 million shares outstanding.
June 9, 2011
Dundee Securities initiated coverage on Nemaska Exploration (OTC Other: NMKEF; TSX-V: NMX) today with a “Buy” rating and a 12-month target price of $1.10. This target price represents a 134% increase over the Company’s current share price of $0.47. Below is an excerpt from the report, a complete copy of which is available here.
“Nemaska Exploration’s Whabouchi hard-rock lithium project appears to be well on its way to a positive Definitive Feasibility Study at the end of this fiscal year and spodumene concentrate production by year end 2012. Nemaska anticipates production of over 200,000 t of 6.5% Li2O spodumene concentrate annually at gross margins of ~50%. Capital costs are estimated at US$86 million.
We view Nemaska as a relatively low technical risk way to play the lithium market as it plans to pass the processing risk on to its buyers. The Whabouchi hard rock spodumene deposit is amenable to conventional open-pit mining and processing. It does not have those processing complexities, particularly as a lithium concentrate producer, typically seen in its brine counterparts such as brine chemistry or evaporation pond management. Located in the mining friendlyprovinceofQuebec, the company enjoys excellent infrastructure and support from the Cree Nation community of Nemaska.”
We see this project as undervalued…. Nemaska currently trades at a 33% discount or an EV of C$28.59/t LCE compared to its hard rock peer group average of C$43.00/t LCE. Our 10% DCF model provides for an NAV of $1.10/sh, most of which is derived from the DCF component. We don’t provide much value for its high-grade Sirmac pipeline project, and almost no value for its non-core non-lithium projects which are currently booked at C$7.5 MM and subject of a spin out into a new company.
June 9, 2011
LONDON - Ron Leven of Morgan Stanley has recently delivered a presentation under the auspice of ETF Securities Ltd. in which he outlined his expectations for the major currencies.
He argues that it was perhaps inevitable that we would be running into a rough patch in the economy in mid-year, when the Fed’s QE programme is due to stop. There is a fair amount of uncertainty about the implications for the US and the global economy of the ending of the liquidity injections. What is the source of the current softness?
Morgan Stanley believes that the current weakness in both the US and global economy is temporary and is currently stemming from the production disruptions in Japan along with unusually severe weather in the US in H1 2011. There is also some legitimate slowing in China as the inflation problem becomes significant. The slowdown is real but temporary; over the rest of the year Japan’s reconstruction efforts will be a source of strength, while the US economy is expected to regain traction in the second half of the year. Leven argues that the easy gains in productivity in the early part of the recovery cycle in the US are now over; Morgan Stanley is looking for a significant pick-up in capital investment over H2 and this is expected to generate US growth of approximately 4% on average over the second half-year. China, although struggling with inflation, is thought to be intent to maintain growth at 8-9%. Expect China to be able to underpin the economy through increased infrastructure investment, even as the government makes material efforts to reduce inflation.
June 8, 2011
Nemaska Exploration (OTC Other: NMKEF; TSX-V: NMX) completed an updated NI 43-101 technical report on its Whabouchi lithium property, significantly reclassifying the bulk of its inferred resources to measured or indicated. On the back of this substantial improvement in the resource estimate, eResearch has reviewed its valuation methodologies, and is increasing its target price by 10%, from $0.95 to $1.05. The shares remain a Speculative Buy, and are suitable only for risk-tolerant investors.
June 7, 2011
Nemaska Exploration (OTC Other: NMKEF; TSX-V: NMX) has completed an updated NI 43-101 compliant mineral resource estimate at Whabouchi, the results of which make Whabouchi the largest measured resource of spodumene in the world with 25 million tonnes in the measured and indicated categories. Below is an overview of the updated resource estimate, which has a potential of 25 years of resources to mine. Next step, feasibility study, expected this fall. This is the stuff dreams are made of.
June 3, 2011
Nemaska Exploration (TSX-V: NMX and OTC Other: NMKEF) announced today the reciept of a final prospectus filed with the regulatory authorities in Quebec, Ontario, Alberta and British Columbia, with respect to a public offering of between $2,000,000 and $6,000,000 in the capital stock of Monarques Resources Inc. in a combination of units and flow through shares.
From today’s release:
Monarques has agreed, conditional upon closing of the Offering, to purchase all rights, titles and interests owned by Nemaska in the Lac Arques, Lac des Montagnes and Lac Levac properties for a purchase price of $7,500,000 by issuing, as at the closing date of the Offering, an aggregate of 18,750,000 Common Shares at a price of $0.40 per Common Share. Nemaska intends to distribute 3,685,645 of these 18,750,000 Common Shares to its shareholders as a dividend. The record date to determine the shareholders allowed to receive the proposed dividend remains to be confirmed.