The 3 Most Undervalued Lithium Stocks to Buy in January
If we want to find something that blends technology, science and a healthier, cleaner world, we need to talk about lithium stocks. Lithium is becoming increasingly indispensable in the world of batteries and electric vehicles. Of course, without the incredible work that these companies do with the exploration and exploitation of lithium, batteries would not exist, let alone the operation of electric vehicles. If you want to invest in this sector, you should consider adding these undervalued lithium stocks to your portfolio.
Atlas Lithium (ATLX)
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Atlas Lithium (NASDAQ:ATLX) saw a great opportunity to exploite the Lithium Valley in Brazil. It has established a project called Neves, which controls approximately 2,684 hectares of mineral rights in the valley, which it considers its main business.
But this large amount of hectares has not been enough for them. The company is always going for more growth and improvement. The company has had great success in its recent drilling, where it has not only confirmed four spodumene-rich pagmatite bodies, but also found six new promising zones.
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Atlas Lithium found lithium in its 58,497 meters of drilling, with a magnificent 103.4 meters of continuous spodumene, undoubtedly the largest in the Brazilian Lithium Valley.
But it has more to impress investors with. Financially, it ended the third quarter with $22.8 million in the bank and raised $10 million from a private placement. Additionally, in an investment round led by Martin Rowley, it raised $20 million.
To top it off, the Anitta 3 and Anitta 4 pegmatites are doing the job, with wonderful finds, which adds more value to this great option in undervalued lithium stocks.
Piedmont Lithium (PLL)
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Not only does this company play a big role in the U.S. electric vehicle supply chain, but it is also financially well-placed. Let’s talk about Piedmont Lithium (NASDAQ:PLL).
In its latest financial report Piedmont Lithium posted revenue of $47.1 million with an impressive gross profit margin of 50.4%.
On top of that, the company has $94.5 million in cash and cash equivalents, with a net income of $22.9 million. If you had any doubts about its financial stability, with these figures it has been resolved.
Piedmont has a joint venture with Sayona Mining’s (OTCMKTS:SYAXF) Sayona Québec, which is the North American Lithium (NAL) project. This project discovered new high-grade lithium zones beyond the planned mine model. This description suggests a possible extension of NAL’s mine life.
To add to the good news, Piedmont Lithium also plans to acquire a 19.9% stake in Vinland Lithium, with plans to increase this stake to 62.5%. This strategy goes hand in hand with its plan to focus on projects with large-scale potential, such as Vinland’s Killick lithium project in Canada. The results of this project in Canada are incredible. Its exploration covers approximately 60 kilometers of prospective strike length. Piedmont Lithium is a great stock for our list of undervalued lithium stocks.
Standard Lithium (SLI)
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Standard Lithium (NYSE:SLI) is a major operator of North America’s richest lithium brine resources. It has a strong interest in the Smackover formation, which coincides with high-grade lithium concentrations in the region.
During the first quarter of 2024, Standard Lithium reported incredible achievements, such as the completion of the Definitive Feasibility Study for its first commercial lithium extraction plant at the LANXESS South Plant.
This project is scheduled to start production in 2026. In addition, this project is of great importance as it highlights the dedication to the commercialization of lithium mining in the United States, which had been on hiatus for a long time.
Standard Lithium has recently had some wonderful achievements, such as the preliminary feasibility study for the SWA project, and the involvement of Citi (NYSE:C) in strategic financing and partnership options.
Its partnership with LANXESS on the Phase 1A project signifies a cooperative effort to establish a solid operating framework, and the U.S. Treasury Department’s continued emphasis on critical domestic minerals lends strength to Standard Lithium’s position.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines (no position)
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.
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