8th Aug 2023 12:13
(Alliance News) - Bradda Head Lithium Ltd on Tuesday hailed a "productive few months" and believes its progress is yet to be factored into its stock market valuation.
Shares in the company jumped 22% to 4.14 pence each on Tuesday morning in London, but there are down 47% over the past 12 months.
The lithium explorer said demand for the commodity remains "healthy", driven by electric vehicles and energy storage systems.
There is also "continued and growing economic support" in the form of the US inflation reduction act, which will see investments of USD369 billion in the electric vehicle market.
Bradda Head talked up its own portfolio, which includes assets in Arizona, Nevada and Pennsylvania.
"Our lithium brine projects in Nevada, namely Eureka and Wilson, are prospective opportunities. Both projects have clear geophysical anomalies, showing the presence of reservoirs with conductive fluids, indicating the potential presence of brine at both. We also see potential for a clay signature at Wilson," the company said.
"Bradda Head also has strategic land packages that have the potential to contain lithium-bearing brines associated with oilfield brines in Pennsylvania. The extraction of lithium from old oil brines has seen significant investment recently with the acquisition of lithium rights in the Arkansas portion of the Smackover formation for USD100 million in May this year by Exxon Mobil which is now entering this space."
Bradda Head said it is fully-funded for 2023.
"It has been a productive few months for Bradda Head, with ongoing positive indicators from our operational drilling, fieldwork, permitting efforts and strategic discussions in the US and Canada associated with all our US-based projects. This is not reflected in the valuation of our company in the opinion of the board," Bradda Head said.
It believes its share price is "undervalued and offers an extremely attractive entry level into Bradda Head".
Bradda Head added: "Bradda Head has strategically located critical mineral projects in the US, located in the middle of the burgeoning US battery supply chain that the government is funding growth of with nearly USD370 billion of grants and low-cost loans. Bradda's asset mix gives the company and its shareholders exposure to three different types of lithium projects, as all types have their advantages. The company has near, medium and long-term exposure, and most importantly has work underway on its two flagship projects (hard rock and clay).
"2023 will be a big year for Bradda... This is the time to invest in Bradda before the 3rd wave of lithium investing hits the market."
By Eric Cunha, Alliance News news editor
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