Condor Energies Inc. (CDR:TSX.V) has released its results from the second quarter of this year (Q223, including financial statements and management discussion and analysis. These documents are available on the company's website.
The report has included the highlights of Q2. In July of 2023, the government of Kazakhstan awarded Condor a 100% working interest in a contiguous 37,300-hectare lithium brine mining license in Kazakhstan for a six-year term. The company is awaiting final approval from the government of Kazakhstan for its 95% working interest in a separate lithium brine mining license in Kazakhstan.
In June, the company established a US$5.9 million three-year term loan facility that bears interest at 9.0% per annum and is available for working capital requirements and general corporate purposes.
Jessica Cummins of Stockhead reports that the market is hot for lithium and other EV battery metals.
The company continues with final negotiations and approval of the definitive legal documents for a production redevelopment project to assume full operations of eight existing gas-condensate fields in Uzbekistan. In Kazakhstan, discussions are continuing to secure a long-term LNG feed gas supply contract.
In July of 2023, the government of Kazakhstan awarded Condor a lithium mining license. A prior well drilled in the first lithium license for hydrocarbon exploration encountered and tested brine deposits with lithium concentrations of 67 milligrams per liter in carboniferous aged intervals, as reported by the Ministry of Geology of the Republic of Kazakhstan.
Analyst Malcolm Shaw of Hydra Capital identified Condor Energies as a company worth looking into.
A 670m column of tested and untested brine reservoir has been identified from historical wireline log and core data. This well also penetrated the very top of the Denovian-aged sediments, and reservoir sands were encountered but not tested.
The first and second lithium licenses are strategically located between Europe and Asia, providing direct access to existing and robust lithium markets. Condor intends to produce lithium by utilizing closed-looped direct lithium extraction technologies, a less complex and less capital-intensive model of extraction.
A Hot Market for Lithium
Jessica Cummins of Stockhead reports that the market is hot for lithium and other EV battery metals.
Luke Larative of Seneca Financial Solutions noted, "Over the last few years, most brokers and analysts forecast have underestimated actual lithium prices. This was epitomized in January of this year when lithium 'perma-bear' UBS upgraded its lithium price forecasts by up to 50%, admitting that they had previously underestimated demand from North Asian battery makers and electric vehicle buyers."
Cameron Drummond of Stockhead predicts that EV manufacturing in China will dramatically drive up demand for battery-grade lithium.
According to Benchmark Metals Intelligence (BMI), "the Asia region maintained its position as the regional leader in terms of EV battery plant investments, attracting 38 projects into either gigafactory or EV battery component plant investments."
A Company Worth Looking Into
Analyst Malcolm Shaw of Hydra Capital identified Condor Energies as a company worth looking into.
According to Shaw, "It took flight after the company announced that it is in advanced discussions with respect to taking over eight gas fields in Uzbekistan, along with an exploration block or two."
Condor is unique because its goal is "to revitalize Soviet-era fields with standard Western development practices." He specifically compared it to the early success of PetroKazakhstan, which sold for CA$4 billion.
In an August 15 report, Research Capital analyst Bill Newman maintained a CA$0.50 target price for the company.
Newman said, while under review, "We look forward to additional details on the many growth opportunities which could be released in the coming months."
Ownership and Share Structure
Streetwise Ownership Overview*Management and insiders own 2.83% of the company. Andrew G. Judson owns 1.93% with 1.08 million shares, and Donald Streu owns 0.90% of the company with 0.50 million shares.
Institutions own 24.0% of the company. EurAsia Resource Value SE owns 23.63% with 13.27 million shares, and Palos Management Inc. owns 0.37% with 0.21 million shares.
There are 56.16 million shares outstanding, and 41.31 million free-float traded shares. It has a market cap of CA$39.42 million. It trades in the 52-week period between CA$0.25 and CA$1.85.
| Want to be the first to know about interesting Cobalt / Lithium / Manganese investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
For additional disclosures, please click here.
