Initial Research Report on Global Li-Ion: Strong Short-Term Potential Calls for Ambitious price Target
Global Li-Ion Graphite (CSE:LION – $0.38 & OTCQX:GBBGF – $0.30 & Fra:0TD – €0.25) intends to become a principal supplier of graphite to the rapidly growing lithium ion battery industry.
An opportunity is lining up for the next technological boom, and already a shortage is forming in the boom’s key commodity. Graphite is desirable for its unique properties – which will lead to it being one of the most important materials of the digital age.
The global graphite market is projected to reach USD$29.05 Billion by 2022, at a CAGR of 5.2% from 2017 to 2022. Rechargeable lithium-ion batteries require 20 to 30 times more graphite than lithium, and as battery technology continues to evolve, the use of graphite in an increasing number of applications is also expected to provide growth opportunities for the graphite market in the future.
Global Li-Ion’s well-diversified assets in Canada, the United States and Madagascar offer an ideal opportunity to benefit from the coming Graphite boom.
In addition to moving its three projects forward, Global Li-Ion also entered into a MOU to acquire an interest in BEGO Technologies Ltd. Under the terms of the agreement, the Company will acquire 16% of BEGO and 49% of BEGO Energy Storage.
BEGO owns a peer reviewed patent pending process that uses naturally occurring microbes to produce Graphene Oxide from graphite. Graphene Oxide is a precursor to producing Graphene. BEGO’s priority is to become a low cost high value producer of engineered graphene materials, one of which is dedicated to advancing the next generation graphene based electrode for energy storage.
The Company maintains a tight capital structure with only a little over 36 million shares outstanding, and no debt.
Consequently, we initiate coverage of Global Li-Ion Graphite Corp. with a buy recommendation and a price target of $1.06, which is 182% above today’s stock price. This valuation takes into account that the Ambato-Arana project in Madagascar can be taken back into production relatively fast at a relatively low cost.
Download the first quarter 2018 Global Li-Ion Graphite Company Report.
|Smallcaps.us Advice: Buy||Price Target: $1.06||Latest Company Report (pdf)|
|For important disclosures, please read our disclaimer.|