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Nemaska Lithium CEO on the “very strong message” behind the Johnson Matthey deal

Nemaska Lithium CEO on the “very strong message” behind the Johnson Matthey deal

THE BUZ ON LITHIUM

  • Buz Investors Nemaska Lithium In a special InvestorIntel interview, Publisher Tracy Weslosky speaks with Guy Bourassa, President, CEO and Director for Nemaska Lithium Inc. (TSXV:NMX | OTCQX:NMKEF)
  • about the 166% increase in stock in 2015 and the Johnson Matthey MOU. Specifically, Guy discusses the competitive advantage of securing the Johnson Matthey MOU with “an end-user that is willing to put money upfront to make sure that it will create a new production supply…”
  • and goes onto add: “that’s a very, very strong message on how tight the market is and how the outlook also looks.”

Nemaska Lithium

 Buz Investors Nemaska Lithium In a special InvestorIntel interview, Publisher Tracy Weslosky speaks with Guy Bourassa, President, CEO and Director for Nemaska Lithium Inc. (TSXV:NMX | OTCQX:NMKEF) about the 166% increase in stock in 2015 and the Johnson Matthey MOU. Specifically, Guy discusses the

Nemaska Lithium Tracy Weslosky: Guy, your stock was up 166% in 2015. Can you tell us what you can attribute this to?

Guy Bourassa: Well, we delivered what we said we were going to do. The market was quite flat for most of the year, but in expectation of us getting all the permits required to start building an operation of the Whabouchi Mine. So, if you look at the chart it exactly reflects the decisions that were rendered, federal government at the end of July stock started to rise on this. Early September, provincial government gave us the certificate of authorization, another spike. It maintained very good liquidity because we have strong believers in our stock, long-term shareholders, and they were all expecting a long due process to be approved.

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Nemaska Lithium

Tracy Weslosky: Of course let’s not forget your MOU signing with Johnson Matthey. I think our audience really needs to appreciate as much as we do how substantial that agreement signing actually was.

Guy Bourassa: It is one of a kind and obviously it reflected very strongly on the stock. The MOU we signed with Johnson Matthey has never been seen in the lithium sector. It has never been seen of an end-user, actual credible large end-user of lithium compound that is willing to pay upfront $12 million dollars on goods and services coming from a plant that is not even built. It’s not some sort of a potential letter of intent. It’s a real hard money put upfront for goods and services.

Tracy Weslosky: Of course you managed to sign a deal with real cash. Can you talk to us a little bit about the capital component of this deal please?

Guy Bourassa: Yes. It’s a $12 million dollar Canadian upfront payment for goods, mainly lithium compounds that will come out of the Phase 1 plant that we’re starting to build this quarter in Chibougamau. It’s very interesting because it also shows how tight the market is presently. So for an end-user that is willing to put money upfront to make sure that it will create a new production supply — that’s a very, very strong message on how tight the market is and how the outlook looks also.

Tracy Weslosky: Okay, interesting. Also, Christopher Ecclestone, one of our global analysts at InvestorIntel, said you’re going to be the first “girl to the dance”, I believe is his quote and one of the few that will make it — one of the few in a handful that will make it to production…to access the complete interview, click here

 

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Guy Bourassa of Nemaska on the very, very big shortage of Lithium

Guy Bourassa of Nemaska on the very, very big shortage of Lithium

THE BUZ ON LITHIUM

  • Buz Investors very big shortage of Lithium The real driver for the intense global demand and price increase on lithium In a special InvestorIntel interview
  • Publisher Tracy Weslosky speaks with Guy Bourassa, President, CEO and Director for Nemaska Lithium Inc. (TSXV:NMX | OTCQX:NMKEF) on the overall global lithium market and how the real source for the increasing demand for lithium is energy storage.
  • While commenting on the distinct benefits of the electric vehicle market interest, Guy addresses the global supply shortage and how this may translate to the marketplace.

very big shortage of Lithium

Buz Investors very big shortage of Lithium The real driver for the intense global demand and price increase on lithium In a special InvestorIntel interview Publisher Tracy Weslosky speaks with Guy Bourassa, President, CEO and Director for Nemaska Lithium Inc.

very big shortage of Lithium Tracy Weslosky: I’m delighted to have this opportunity to talk to you about the overall lithium market. Jack Lifton is telling me that we have a bull lithium market. In fact all my editors are, John Petersen, Christopher Ecclestone, they’re all saying we’ve got another 5 years of intense demand and rising prices for lithium. Do you agree with this?

Guy Bourassa: Absolutely, I do agree with this. As a matter of fact, I’m sure that they also noted that the only commodity in the mining sector in the past 4-5 years that I’ve been seeing an increase in demand and an increase in sales price is lithium and the different lithium compounds. What I hear from the Chinese market and the producers around the world and the market analysts is that effectively there’s a very, very big shortage actually that is reflected by the spot price that we see in China that we’ve seen for the past 3-4 months. Some people are talking about even $15,000.00 U.S. for lithium carbonate on the spot price. Of course, the spot price does not represent the real contracts, long-term contracts, but it definitely shows that somebody is looking desperately for lithium carbonate at this time and that there is none.

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very big shortage of Lithium 

Tracy Weslosky: Obviously that is a lot of exciting news for us at InvestorIntel and our audience. Of course, Jack Lifton is telling me the real driver for the battery market is actually China. Of course, Nemaska Lithium has made a one of a kind deal with Johnson Matthey. And as an expert in understanding the demand for batteries, can you talk to us a little about what that demand really is or help enlighten us a little bit more on what the status is at this time?

Guy Bourassa: I don’t quite agree with Jack about the fact that the market is in China. Production increases in China, but their batteries and cathode material is going outside in other markets so they’re producing these batteries, but the end-users are not, absolutely not presently in China. That’s maybe going to be growing there, but it’s already growing in Europe. It’s already growing in the United States, the electric vehicle. What’s even more interesting, because people don’t believe of the rapid growth and the adoption of the electric vehicles, they have to take into consideration that on a tonnage-wise energy storage is much more important than the electric vehicle adoption. You’re going to see at least two times the number of tons of lithium compounds required for the energy storage sector. It’s less sexy I suppose than the electric vehicles

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