Atlas Lithium Corp. (ATLX:NASDAQ) has proudly announced that it is co-hosting the first-ever Brazil Lithium Summit, scheduled from June 11 to 13, 2024, in Belo Horizonte, Brazil.
The Summit promises to be a pivotal event, offering a platform for industry leaders, international corporations, and global investors to directly engage with key decision-makers in the region. Marc Fogassa, the CEO and Chairman of Atlas Lithium, will not only introduce the event but also moderate a panel discussion featuring Ernie Ortiz, CEO of Lithium Royalty Corporation (LRC), a seasoned lithium investor. LRC had previously made a notable non-dilutive, royalty-based investment of US$20 million in Atlas Lithium in May 2023.
Emphasizing the robust collaboration with Mitsui & Co., Ltd., representatives from Mitsui's senior management team will be in attendance. This partnership, announced on March 28, 2024, saw Mitsui's acquisition of US$30 million worth of Atlas Lithium's common shares. Additionally, an offtake agreement was executed for Mitsui's future purchase of lithium concentrate from Atlas Lithium's Neves Project. This transaction, the result of eighteen months of due diligence, underscores Atlas Lithium's appeal as a forthcoming lithium supplier.
Strengthening its foothold in the industry, Atlas Lithium solidified investments and off-take agreements with Chengxin and Yahua, renowned entities in lithium chemical processing, in December 2023. Chengxin, a significant supplier to BYD, and Yahua, a key supplier to Tesla, are strategic partners positioning Atlas Lithium as a crucial player in the lithium supply chain for the burgeoning electric vehicle industry.
Nicholas Rowley, Vice President of Business Development at Atlas Lithium, underscored the importance of the company's partnerships with key stakeholders such as Chengxin, Mitsui, and Yahua. These partnerships are built on Atlas Lithium's core technical team's proven track record of delivering consistently high-quality products from various projects. Rowley highlighted the Neves Project's advantages, particularly its cost-effectiveness and expedited timeline due to being an open-pit mine, which has attracted considerable interest from customers.
As previously announced, Atlas Lithium's processing plant is nearing completion, with final stages of fabrication and trial assembly underway. The company remains on schedule to commence production in the fourth quarter of 2024.
CEO and Chairman Marc Fogassa expressed excitement about co-hosting the Summit, emphasizing its significance as a key event in Brazil's lithium sector. He highlighted the opportunities it presents for stakeholders to explore and the company's readiness, through strategic investments and partnerships, to take a leadership role in both the local and global lithium markets.
Why Lithium Matters
The lithium sector appears to be amidst a positive resurgence, buoyed by various factors, signaling a favorable environment for investors. As Rob Badman from Stockhead noted on March 14, "Is there something of a perfect storm forming for lithium right now? A positive perfect storm that is."
Indeed, recent trends in lithium pricing indicate a potential upward trajectory. UBS Group AG observes that the lithium market is rebalancing, with the industry curtailing production and projects, hinting at a shift towards stability and potential price increases.
On May 7, Technical Analyst Clive Maund summed it all up like this, "We, therefore, stay long, and Atlas Lithium is rated a Strong Buy for all timeframes."
Chinese company Ganfeng Lithium predicts a long-term uptrend in lithium prices, driven by increasing demand from producers of power batteries and energy storage.
This sentiment aligns with the bullish outlook presented at the China EV 100 Forum, where BYD chairman Wang Chuanfu anticipates a significant increase in new energy vehicle (NEV) penetration rates in China. Such developments bode well for lithium demand, as reiterated by Wang's statement, "Both scenarios, if played out, would be a huge boost for lithium demand."
Moreover, advancements in lithium battery technology further underscore the sector's growth potential. Companies like SK On and Samsung SDI are pioneering innovations to enhance the performance and efficiency of lithium-based batteries, strengthening their position in the electric vehicle market. Additionally, strategic investments and expansions within the lithium sector, such as those undertaken by Pilbara Minerals, Liontown Resources, and Delta Lithium, reflect growing confidence and optimism among industry players. These initiatives contribute to the overall resilience and vitality of the lithium story, positioning it as an attractive investment opportunity for those keen on participating in the electrification revolution.
Catalysts for Atlas Lithium
Atlas Lithium's strategic partnerships are driving its growth trajectory.
Marc Fogassa, CEO and Chairman of Atlas Lithium explained, "We are thrilled to co-host and show our strong progress at the Summit, the most important lithium event in Brazil. This groundbreaking conference unites key stakeholders from the lithium industry, government, and international investors to explore the exciting opportunities within Brazil's lithium sector. Through strategic investments and partnerships that we have secured, Atlas Lithium is well-positioned to assume a leadership role in the local market and to integrate itself into the global lithium supply chain."
Additionally, significant investments from entities like Lithium Royalty Corporation and Mitsui underscore confidence in our potential as a reliable lithium supplier. Participation in the Brazil Lithium Summit further enhances our visibility and engagement with industry stakeholders and investors, solidifying our position within the lithium sector and paving the way for sustained growth and market leadership.
What Analysts Are Saying
On May 1, Heiko Ihle, an analyst at H.C. Wainwright & Co., took a look at Atlas Lithium Corporation's recent developments and future prospects. He emphasized the significance of Mitsui's commitment, stating, "Importantly, the backing provides Atlas Lithium with immediate liquidity necessary for rapid development toward revenue generation following the production and sale of high-quality, low-cost, environmentally sustainable lithium concentrate."
Despite a reduction in the target price, Ihle maintained a positive outlook on Atlas Lithium, noting, "Atlas remains a Buy." Additionally, he anticipates-d increased interest in the company's output, stating, "The firm is likely to receive increased interest for its phase two output of lithium concentrate following the investment and offtake agreement with Mitsui."
In his April 30 analysis, Roth MKM analyst Joe Reagor shed light on Atlas Lithium Corporation's agreement with Mitsui. Despite Roth's reduction in the target price to US$36 per share from US$39 due to dilution resulting from the deal, Reagor considers the investment "an incremental positive for Atlas as it demonstrates further confidence in the company's project from the lithium battery industry." Roth maintains a Buy rating on the company, emphasizing the compelling return potential, stating, "As such, the return to target, albeit lower, is still compelling, at 112%."
Reagor detailed the specifics of Atlas' arrangement with Mitsui, highlighting the US$30 million investment and the offtake agreement for lithium spodumene concentrate from the Neves project. He anticipated a notable catalyst on the horizon with the completion of a resource estimate and a financial study, despite delays, noting that these delays have not hindered the company's targeted production start later this year.
That same day, Alliance Global Partners analyst Jake Sekelsky offered his own insights into Atlas Lithium Corporation's strategic investment and offtake agreement with Mitsui, anticipating accelerated development for the Minas Gerais lithium project in Brazil. Sekelsky highlights the agreement as validation for Minas Gerais and revises the target price on Atlas to US$55 per share, down from US$75, considering factors such as dilution from the Mitsui investment and revised short-term lithium price forecasts. Despite the adjustment, Sekelsky emphasizes the significant potential gain of 223% for investors and maintains a Buy rating on Atlas, stating, "We continue to believe Atlas trades at a discount and believe the company is primed for a rerating in the coming quarters."
Streetwise Ownership Overview*On May 7, Technical Analyst Clive Maund summed it all up like this, "We, therefore, stay long, and Atlas Lithium is rated a Strong Buy for all timeframes."
Ownership and Share Structure
About 36% of Atlas Lithium is owned by management and insiders. About 13.5% of the shareholders are institutional.
The rest, about 50.5%, is retail.
Other top shareholders include Waratah Capital Advisors Ltd. with 4.52%, Invesco Capital Management LLC with 2.48%, and Candace Shira Associates LLC with 1.47%, according to Reuters.
Its market cap is about US$202.53 million. It trades in a 52-week range of US$34 and US$11.80.
Important Disclosures:
- Atlas Lithium Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Atlas Lithium Corp..
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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