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Throughout this edition of Stock Analyzers, we want to bring a mineral exploration company to your attention. otcmkts:pemif (Pure Energy Minerals Limited) ticker symbol (PE.V), or (OTCQB: PEMIF), This emerging penny stock could offer traders and investors growth potential. We will provide an overview of the company, key financials, current news, and final thoughts to give us an overview of its direction and possible opportunities.
otcmkts:pemif primarily engages in the exploration, acquisition, and development of mineral properties.
Its principal project is the Clayton Valley lithium brine project. The project contains inferred mineral resources of lithium carbonate equivalent at 218,000 tonnes and is located in Clayton Valley in Nevada. The company was previously known as Harmony Gold Corp and changed its name in October 2012. The company is headquartered in Vancouver, Canada.
Pure Energy Minerals LTD Overview
otcmkts:pemif is an innovative leader in efficient mineral exploration and development. Its primary project is a lithium brine project located at Clayton Valley and is North America’s only producing lithium mine.
The company is currently listed as a TSX Venture on the Canadian Exchange (PE.V); in the U.S, they are listed as (OTCQB: PEMIF), and in Frankfurt (AHG1). The company is also engaged in processing technologies for lithium through its technology partners Tenova Advanced Technologies. Pure Energy Minerals’ primary objective is to deploy, and offer low-cost, environmentally friendly processing technologies. To produce lithium battery materials to meet the current lithium demand.
otcmkts:pemif – The Benefits Of Lithium
Lithium is an industrial product bought and sold under contract and tailored to the customer’s needs. These contracts are essential to predict cash flow and secure project finance.
Lithium is currently used in over 70 types of products. The increase in battery usage has increased the demand for lithium.
They realize that electric vehicles, commercial battery systems, and grid storage are all high-growth areas. The demand for these areas is as high as 125%, driven by grid storage and electric vehicles. Furthermore, the price of lithium has increased to 300% since 2003. The company’s Clayton Valley project is aligned with the anticipated growth demand in lithium.
The Demand Of Lithium
Lithium is driven by power storage demand, which covers electric vehicles, power tools, or other hand-held devices. By the end of the decade, the market is likely to increase by 12%. It is estimated that lithium consumption will reach 160k tonnes, and the supply may be short. Investors have concerns around the supply side, mainly due to the increased number of projects within the lithium industry. Pure Energy Minerals believe that the demand will outstrip the supply, and the demand could reach 125% by the end of the decade.
Nevada has always been a thriving industry when it comes to mining. Nevada’s mining in 2015 was $4.6 Billion and provided roughly 14,000 high-paying jobs. Throughout the decades, Nevada has been recognized as a mining powerhouse.
Nevada is home to North America’s only producing lithium mine called Albemarle’s Silver Peak. Nevada is positioned to support global demand for energy innovation. Also, its access to public land and supportive government are the key factors attracting many mining companies.
Lithium is an element linked to high technology, clean energy, and climate change legislation.
Some policies may conceive a long-term plan for developing domestic lithium batteries and could increase over the next decade. It would decrease oil dependence and carbon emissions throughout most states.
As the demand increases for lithium, Nevada’s mines are primmed to meet that demand and carry the country into the future.
otcmkts:pemif Key Data
otcmkts:pemif is currently trading at 1.08 and has increased by 0.5587% at this article’s time. We can see the day range is between 1.80 – 2.00, with a volume of 154,553. The PE ratio is not available at this time.
The company has not released an earning date, and its market capitalization is 58.96 million. The company does not offer a dividend yield at this time.
Here are some of the most frequently asked questions from traders and investors relating to this company;
When Will Pure Energy Release Its Financial Results?
otcmkts:pemif is due to release upcoming financial results, which are interim results scheduled for 31-12-2021
Pure Energy Minerals Key Directors
The company’s management team is as follows. Michael Dake (Director), Mary Little (Director), Frank wells (Director), and Tyler Durham (Director)
otcmkts:pemif Financial News
Pure Energy Mineral current news releases have been gathered from various financial news sites on the internet and discuss highlights and main points. You can access further reading on the articles here for details.
otcmkts:pemif A good Position For Growth Plans
It is true that when businesses lose money, shareholders may make money when they buy a good company at the right price. An example of this would be Pure Energy Minerals, as shareholders have done well over the year, with prices increasing by 211%. But can you ignore the risk that a company burns through cash quickly?
When you consider its strong share price performance over the year, it might be worthwhile for shareholders whether its cash burn might be concerning.
We will now compare its cash burn with its cash reserves to calculate any deficit.
What is the Cash Burn?
If the company keeps spending money at its current rate. Will it run out of money? In short, the company must reduce its annual cash burn, or it needs to replenish its cash.
otcmkts:pemif is a new company at an early stage and did not record any revenue last year.
When you look at the 76% reduction in its cash burn throughout last year, the management is concerned about running out of cash. It can make traders and investors nervous with a lack of operating revenue demonstrated in the company compared to its overall market performance in the last year.
Now that the company is reducing its cash burn, it should no doubt bring us some comfort. We have to ask ourselves how easily the company can raise more money for its future growth. Most companies will raise money through equity or debt and issuing new shares. When we analyze how much cash burn the company has compared to its market capitalization. You can then calculate how many shares it would issue to run the company for another year.
Pure Energy Minerals Moving Forward
When we look at the market capitalization, we can see $27M compared to $438k cash burn, which is estimated to roughly 1.6% of the market value. This means that otcmkts:pemif can quickly issue a few more shares to fund more growth and could be in a position to borrow cheaply.
Pure Energy Minerals cash burn was a little concerning, but it looks promising when it’s compared to the market capitalization. As traders and investors, we are always concerned about a company’s cash burn, but the metrics discussed will leave us in a more comfortable position.
SCHLUMBERGER NEW ENERGY Launch Lithium Extraction At Clayton Valley Project
otcmkts:pemif announces a milestone by its partner Schlumberger New Energy at Pure Energy Minerals Clayton Valley lithium brine project. Schlumberger New Energy plans to develop a lithium extraction pilot plant in this new venture. The project is due to commence on March 18, 2021.
The current demand for lithium battery grade is expected to grow exponentially due to the demand from electric vehicles, rechargeable batteries, and other hand-held products. Efficient lithium production has become an essential topic for industries, technology companies, regions, and automotive manufacturers.
Ashok Belani, Schlumberger New Energy executive vice president, commented. Nevada Lithium Resources presents many opportunities to demonstrate production efficiency using more sustainable approaches. The company plans to accelerate the pilot plant’s deployment to meet the high market demand for battery-grade lithium.
The agreement between Pure Energy and Schlumberger in the development of Clayton Valley Lithium brine property will be using advanced technology to process the brine to extract the lithium products. When the necessary permits have been granted, the company will begin operations before the end of 2021.
Schlumberger has invested roughly $15M in this process technology and the pilot plant’s development and operation. The process has the capabilities to disrupt the lithium economy opening further opportunities in the existing production regions. This will enable new lithium regions globally to meet the increasing demand.
Mary Little, director (otcmkts:pemif) commented that Pure Energy is pleased with Schlumberger’s progress including, plant design and DLE brine extraction technology. Pure Energy welcomes this development’s progress, which will benefit their mine and potentially other projects throughout Nevada.
otcmkts:pemif is an emerging company in efficient minerals exploration in Nevada. Their Clayton Valley project offers exceptional opportunities to the company is positioning itself as a critical player in the production and extraction of lithium.
Lithium is used in over 70 types of products presently. The growth of battery usage increasing has sent the demand skyward. The demand for lithium is estimated to reach 125% by the end of the year and has increased by 300% since 2003.
otcmkts:pemif are aware that there have been concerns about the supply of lithium in the industry. Pure Energy believes that there is a risk that demand will outstrip supply throughout the decade, and it is estimated to reach 125% of total capacity.
Pure Energy believes as the demands increase for lithium, Nevada’s mines are primmed to meet that demand and carry the country into the future.
We have analyzed that Pure Energy is in a great position to deliver growth plans as shareholders have done well over the year, with prices increasing by 211%. Still, we were concerned about the company’s cash burn.
Considering the company’s strong share price performance over the year, the company could quickly issue a few shares to ensure future growth compared to its market capitalization. It looks promising.
The company announced a milestone by its partner Schlumberger New Energy at Pure Energy Minerals Clayton Valley lithium brine project. Schlumberger New Energy plans to develop a lithium extraction pilot plant in this new venture.
With this new partnership, the process could have the capabilities to disrupt the lithium economy opening further opportunities in the existing production regions. This will enable new lithium regions globally to meet the increasing demand. The project is due to commence on March 18, 2021, and is excellent news for otcmkts:pemif.
This will strengthen both parties to produce this high-demand product to meet the overall demand throughout the future.
There is no doubt that if Pure Energy can keep on track, it has the potential to attract many more projects and partnerships. The stock price has been kind to shareholders over the year. If the company can focus on keeping them happy by providing sustainable growth. Then this company could be a winner and a potential gem to traders and investors.
Stock Analyzers hope you enjoyed this article on otcmkts:pemif. You might be interested in reading otcmkts:apgi, another outstanding penny stock that will grab your attention.
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