Grounded Lithium: a million tons of lithium carbonate equivalent (LCE) inferred at Kindersley and a Red Cloud “Buy” rating

Source: Streetwise Reports 11/03/2023

Grounded Lithium, based in Saskatchewan, reports that it has updated its Mineral Estimate on the Kindersley Lithium Project. Read on to see why analysts like this company.

Grounded Lithium Corp. (GRD:TSX.V; GRDAF:OTCQB) has announced in a recent press release that the company has upgraded the inferred mineral resource on its property to measured and indicated mineral resources totaling approximately a million tons of lithium carbonate equivalent (LCE). This number is still a small fraction of the inferred LCE on the Kindersley project, which holds an inferred 4.2 million tons of lithium, reported the press release.

Grounded Lithium noted this as an important milestone since it will be “the first company in the province of Saskatchewan to be recognized by an independent third party for measured mineral resource in a lithium from brine project.”

The company reported that it still has some ways to go, as this update only covers about 21% of the property, but it supports estimates that the company made in previous surveys and maps.

According to Gregg Smith, the President and CEO of Grounded Lithium, “From our inception, GLC’s vision was to secure focused, high-quality resource rights in areas which aligned with our extensive geological model, incorporating a low-cost structure to drive compelling economics. By moving only a minor portion of our overall resource base to the M&I categories, we have passed a key step in the overall commercialization of Phase 1 of the KLP. Quality resource produces quality economics, which also supports our project’s resilience to volatility in commodity price.”

Strong Fundamentals and Room for Growth

Red Cloud Securities provided some insight into the lithium market as of August 30, 2023, where it seemed to have a positive view of the industry.

Red Cloud stated, “We also highlight that with Li prices retracting over the last few months, we believe the fundamentals for lithium brine developers continue to remain strong, with further room for growth, as the technology is advanced and de-risked.”

A Positive Upgrade

A report on Grounded Lithium for October 25, 2023, was provided by Red Cloud Securities, where it rated the impact of the company’s recent updates as “positive.”

A report on Grounded Lithium for October 25, 2023, was provided by Red Cloud Securities, where it rated the impact of the company’s recent updates as “positive.”

According to Red Cloud, “We view this upgrade positively as only M&I resources can be considered for a Pre-feasibility study . . . The next major de-risking step for the project is the construction of the field pilot plant, and concept and design work for this is already underway.”

Grounded Lithium was also included on the list of companies recommended by Mark Zerat of Spartan Fund Management. Zerat highlighted the company’s unique location, relative to the rest of the industry, in Canada, as well as its more efficient Direct Lithium Extraction technology. He commented that “while traditional evaporation methods require high-grade lithium brines, DLE is less dependent on the grade of the brine, enabling the development of lower-grade lithium deposits in regions that lack desert climates.”

Ownership and Share Structure

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Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 9.35% of the company.

President and CEO Richard Gregg Smith owns 3.08% of the company with 2.36 million shares, CFO Greg G. Phaneuf owns 1.89% of the company with 1.45 million shares, Vice President Lawrence Patrick Joseph Fisher owns 1.15% of the company with 0.88 million shares, Director Mark Grant McMurray owns 0.91% of the company with 0.69 million shares, Chairman John David Wright owns 0.85% of the company with 0.65 million shares, Vice President of Geosciences Wayne Gaskin owns 0.76% of the company with 0.58 million shares, Director Ronald Schmitz owns 0.48% of the company with 0.37 million shares, Director Rose Zanic owns 0.13% of the company with 0.10 million shares, and Vice President of Operation Dale Shipman owns 0.10% of the company with 0.07 million shares.

Institutions, in the form of Carret Asset Management, LLC, own approximately 0.04% of the company with 0.03 million shares, reports Reuters.

According to Reuters, there are 76.61 million shares outstanding with 69.46 million free float traded shares and a market cap of CA$6.44 and trades in the 52-week period between CA$0.10 and CA$0.50.

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1. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: GRD:TSX.V; GRDAF:OTCQB, )

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