The $4 M Market Cap With The Potentially Billion Dollar Land Package

SPARK ENERGY—EMIN-CSE/MTEHF-OTC has a minuscule $4 million market cap and trades at a mere 6 cents a share. Surprisingly, it holds the most extensive land position in Brazil’s lithium valley – a significant advantage. In the same region, Sigma Lithium (SGML-TSXv) is constructing a lithium mine slated for production later this year. During the 2022 lithium boom, Sigma experienced explosive growth, with shares soaring from $1.50 to $54.

Lithium prices and sentiment are expected to reach their lowest point in the first half of 2024. According to Bloomberg, UBS Group AG and Goldman Sachs Group Inc. have reduced their supply estimates for 2024 by 33% and 26% respectively. Additionally, Morgan Stanley has cautioned about the increasing risk of decreased inventories in China.

Canaccord, a brokerage firm based in Canada, has provided a list detailing new projects that are facing delays or potentially more serious setbacks.

EV sales are on the rise, albeit not meeting the rapid pace desired by car dealers. CNBC has reported that in the United States alone, both hybrid and fully electric vehicles collectively surpassed 1 million units sold last year, with growth trends continuing. The demand for lithium remains high, particularly from sources outside of China.

Considering the current scenario, one could either invest in a deeply discounted stock at its lowest point or just as prices begin to rebound. Spark possesses an extensive land portfolio, spanning 63,000 hectares or 155,000 acres, which surpasses the holdings of its competitors by a considerable margin.

Jon Hill, former Exploration Manager for Anglo Ashanti in Brazil for three decades, oversees Spark’s exploration endeavors. Although he serves as a consultant, Jon’s expertise and extensive network within the industry make him a valuable asset. With his vast geological knowledge and experience in the region, Jon and his team at Exploration Outcomes are diligently working towards identifying significant lithium deposits for Spark.

Investors have a clear understanding of what Jon and Exploration Outcomes are expected to uncover—a multitude of pegmatite dikes, ranging from one to tens of meters wide, containing approximately 1.25% lithium. This discovery aligns with the prevalent findings across Brazil’s lithium valley, where similar formations are being identified by various exploration efforts.

However, uncertainties remain regarding the timeline of these discoveries, the adequacy of funding, the quantity of dikes present, and their proximity to one another. The crucial question revolves around whether they will locate a cluster of dikes substantial enough to constitute an economically viable deposit.

Spark’s land holdings, situated beneath a covering layer, present a unique advantage. Unlike properties where dikes are visible on the surface, the concealed nature of Spark’s dikes made them less attractive during the peak of the lithium rush in 2022. Consequently, Spark’s team secured this extensive land package at a favorable price.

Moreover, Spark’s ground exhibits magnetic features similar to those of its more advanced and higher market capitalization neighbors in Brazil’s lithium valley, further enhancing its potential.

Exploration Outcomes has been diligently analyzing the press releases issued by Spark’s peer group, including companies like Lithium Ionic, Sigma, and Atlas Lithium Corp. They are keen on understanding which exploration methods are yielding positive results and closely monitoring management’s commentary on industry trends, techniques, and outcomes. Despite these companies boasting market capitalizations 10 to 100 times larger than Spark’s, Exploration Outcomes sees an opportunity for leveraging this publicly available intelligence to optimize Spark’s exploration strategy for its vast land package.

Moreover, Jon Hill brings his extensive experience of over 30 years in this region, offering additional insights and techniques honed over his career. By combining the wealth of publicly available data with Jon’s expertise, Spark is well-positioned to identify and prioritize the most promising targets within its expansive land holdings.

Do you remember what James Coburn said in the movie Baltimore Bullet—”Kid, I taught you everything you know.  I didn’t teach you everything I know.”  That’s Jon Hill.

Exploration Outcomes possesses a set of cost-effective satellite-based techniques, amounting to a mere US$20,000, which Jon believes can effectively identify promising targets at 10-meter intervals across Spark’s extensive 63,000-hectare property.