http://research.dundeesecurities.com/Research/Lithium102809.pdf
Dundee is one of the well-respected research houses in Canada.Dundee Bank of Canada is a Schedule I Canadian Chartered bank. We are a member of the Canada Deposit Insurance Corporation.Dundee Bank of Canada is purpose-built specifically to serve professional financial advisors. We offer innovative and rate-competitive banking products backed by professional sales support, service and execution. Our objective is to help advisors build their business by providing them with better options for their clients. Our commitment to advisors is that we will not cross-sell, solicit or prospect an advisor’s clients.
Dundee trades under the symbol DW on the TSX:Exchange and is now about $12CDN/share.
Similar to the Byron Securities' Lithium overview - Dundee offers a breakdown on the current supply versus demand of lithium, from rough approximation of production figures to comparing it on per vehicle lithium-carbonate requirements.
All very fascinating read. They also then list out credible groups on the TSX and provide an update/background on each. Our favorite small junior exploration group is featured, of course.
TNR Gold Corp./International Lithium
TNR Gold was an early mover in acquiring lithium properties and has assembled a package of eight properties that continues to grow. The projects are located in diverse geographical locations with pegmatites in Canada and Ireland and brine projects in Nevada and Argentina. TNR Gold plans a spin out of its lithium and rare earth element assets into International Lithium Corp. in the first quarter of 2010. The company will also be looking for joint venture partners to move their extensive property portfolio forward.
Lithium One’s primary focus is the 1,700 hectare James Bay project in northern Quebec. Several pegmatite dyke swarms have been identified by surface mapping. Drilling and trenching was undertaken in 2009 and most reported intercepts and channel samples have been in the 1.3% to 1.7% Li2O range. Lithium One estimates that true widths of the dykes are up to 30m wide. The company has also recently acquired over 25,000 hectares of land in Argentina with surface brine samples containing high levels of lithium and potash (averaging of 640 ppm Li)
Canada Lithium Corp.
Canada Lithium’s (CLQ) primary focus is its past-producing Quebec Lithium Project. CLQ is also looking at other spodumene pegmatite deposits in Canada and has a 75% interest in a joint venture exploring for lithium brine deposits in Nevada. CLQ has commenced a pre-feasibility study on Quebec Lithium and is aiming for a completed feasibility study in 2010. CLQ suggested in March 2009 that it had materially advanced its lithium carbonate metallurgical process and could ultimately produce battery quality lithium carbonate. Quebec Lithium is located 60 km north of Val d’Or and produced for ten years in the 1950’s and 60’s. Spodumene rich dikes were extracted from an underground operation. An historic resource of 15.6 million tonnes with a grade of 1.14% Li2O remained following a ten year operation.
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TRU Group Inc, Toronto ON, Tucson USA, Friday, November 12, 2009 –
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Lithium demand has been hit hard through third quarter 2009 and we envisage a full year decline exceeding 12% over 2008. Lithium consultants TRU Group Inc says that there is no need therefore to update its well publicized January 2009 long range lithium outlook 2020 presented at the IM lithium conference. The next six months will be critical but a recovery is likely soon. The TRU distinctive forecast of lithium use in electric vehicles and lithium use in alloy is also proving correct. Thus no significant modification to our long range demand projection is necessary for the 2010 conferences.
The TRU view that global lithium oversupply will persist at minimum through 2013 is affirmed. Output of lithium chemicals through expansion by existing brine-based producers - SQM, FMC, Chemetall and CITIC – and new development projects in the pipeline will assure sufficient lithium supply long range. Additional new medium range production will originate from mineral-based producers in China particularly and likely Rincon Lithium (salar) of Argentina. We expect at least one new competitive brine producers to be in production within ten years.
Dominating lithium producer SQM in September 2009 announced 20% price reductions. Lithium prices have been flat through 2009 bolstered by the steep fall in the US dollar against lithium producer and user currencies. TRU president Edward R Anderson says “the SQM price reduction was a necessary correction and consistent with the TRU over-supply scenario. Indeed, there is little prospect for price volatility even long range. TRU projects an orderly and balanced development of the lithium industry through the 2020 horizon”.
Since most lithium originates from Chile and Argentina there is little to threaten US lithium security as some will have us believe. Even if there were a breakdown in world order, lithium chemicals are readily stockpiled. Although minimal lithium battery capacity exists in the US this is being alleviated. Much of lithium technology generally originated in North America and we remain comparatively strong from raw materials through to end products. TRU itself has North American experts in most technical aspect of lithium production and application.
TRU assists companies from exploration, process engineering and lithium product design. In 2009 TRU technical assessed and ranked all the global 170 lithium salt lake salars and also the thirty pipeline mineral-based projects being promoted. TRU president Edward R Anderson says “The barrier to development for most projects is inadequate use of well qualified lithium engineering expertise. Lithium process engineering is highly specialized and too many of these start-ups have no experience in chemical plant project development. Missteps and some engineering failures are inevitable. Some projects will prove unprofitable because management underplay the competitiveness of the industry. Success of a lithium resource development requires solid state-of-the-art technology and the industry strategic skills to compete”.
TRU Group Inc based in Toronto, Canada and Tucson, USA are lithium engineering and industry consultants with a strong capability in lithium project development, feasibility studies and investor due diligence. The
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