Lithos Group Ltd. (LITS:CBOE.CA;LITSF:OTCMKTS;FSE:YU8;WKN:A3ES4Q) is in the advanced stages of developing and perfecting a technology that is set to revolutionize the production of lithium.
As Beacon Securities says, "The technology enables lithium brine resource operators to deploy field-ready extraction solutions that will substantially reduce water consumption by recycling 98.5% of the input brine water, reduce CAPEX by >50% compared to evaporation ponds, curtails the use of toxic chemicals, cuts processing time by >90% and substantially eliminates the use of evaporation ponds in the pre-treatment and concentration phases of production. The company has been engaged in multiple proof-of-concept level tests with tier-1 customers in the lithium and O&G sectors."
This is a big, big deal, for the implementation of Lithos Group's technologies will greatly reduce the threat of contamination by toxic chemicals, massively reduce costs and production time, and as it will largely reduce the use of evaporation ponds, it will slash water consumption dramatically.
By its very nature, lithium occurs and is produced in arid regions of the world where there is fierce competition for water resources that often becomes a political issue, so the vast reduction of water consumption made possible by Lithos Group's technologies will make it much more possible for lithium producers to work unhindered by friction with locals over water that could lead to serious complications.
When we say that Lithos Group is in the advanced stages of developing and perfecting a technology, this is evidenced by the fact that, to quote Beacon Securities again, "Lithos is currently working with four tier-1 lithium companies and two supermajor energy companies in North and South America to help display the commercial viability of its technology." Small wonder, then, that its stock is shaping up for a major bull market and appears on the verge of breaking out into a strong uptrend.
To quote Beacon Securities again, "Lithos is currently working with four tier-1 lithium companies and two supermajor energy companies in North and South America to help display the commercial viability of its technology." Small wonder, then, that its stock is shaping up for a major bull market and appears on the verge of breaking out into a strong uptrend.
Amongst recent developments, on February 1, Lithos announced its first customer payment and that it has submitted a CA$30 million grant application with the DOE (Department of Energy). It is anticipated that it will learn if the application is successful in May and the omens are good.
On February 27, Lithos announced a CA$2 million private placement and around this time, the stock price naturally gravitated towards and actually touched the price of the offering and, in so doing, completed a normal correction following its earlier runup, so that once it looks like this funding is going to be successfully completed — and the chart is already suggesting that — it is likely to take off higher again, and that could happen soon, or immediately. Now, we will proceed to see on its stock chart why Lithos Energy is a Buy again here.
Lithos Energy was recommended for purchase in an article posted on January 22, when it was priced at CA$0.60. Several days later, it broke out and rose strongly to briefly touch CA$0.98 before reacting back and then advancing again in a more measured manner.
After this approach toward its late January spike high, it then reacted again in a more sedate manner to a line of support at CA$0.70 above its rising 50-day moving average. There has been a run of bullish long-tailed candles over the past several days, with the strongest upside volume for months on Thursday, driving the Accumulation line to new highs.
This implies that a small base pattern is forming that will shortly launch the stock into another upleg that should take the price clear above its late January intraday high at CA$0.98, and it is certainly well placed to make such a move with its earlier overbought condition substantially unwound and its moving averages in strongly bullish alignment.
With another significant upleg looking imminent, Lithos Energy is rated an Immediate Strong Buy here, and this is a good point for existing owners of the stock to add to positions.
Lithos Energy's website.
Lithos Group Ltd. (LITS:CBOE.CA;LITSF:OTCQB;FSE:YU8;WKN:A3ES4Q) closed at CA$0.75 on March 4, 2024.
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Important Disclosures:
- Lithos Group Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Lithos Group Ltd. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000. For this article, the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lithos Group Ltd.
- Author Certification and Compensation: [Clive Maund of clivemaund.com] was retained and compensated as an independent contractor by Street Smart to write this article. Mr. Maund is a technical analyst who analyzes historical trading data and he received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.
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The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.
