$GEMS.C geared up for incoming lithium project boom

With a 50.7% share in 2021, the automobile industry is the main source of the battery market revenue.

With a 50.7% share in 2021, the automobile industry is the main source of the battery market revenue. The fundamental reason for this is that the biggest emerging and developed economies are placing more and more emphasis on reducing carbon emissions and moving to electric vehicles. 2021, a landmark year for this philosophy, witnessed 6.6 million EV sales, or 9% of the world’s auto market. This is causing the metals used in automobile lithium-ion batteries to be consumed. An emerging explorer from Canada known as Infinity stones ventures corp. Having a diversified battery metals portfolio with impressive claims of lithium, nickel, graphite, cobalt is looking forward to capitalizing from the booming opportunity.

https://www.bloomberg.com/news/articles/2022-08-04/insatiable-lithium-demand-fuels-investment-boom-in-australia

$GEMS.C an exploration stage company, dealing in exploration, acquisition and development of mineral rich properties in Canada. They cover critical energy metals like lithium, graphite, cobalt, etc.

  • GEMS recently gave exploration updates on Camaro-hellcat lithium projects following the fall drilling program. Its technical team was successful in confirming historically mapped pegmatites and identified new showings.
  • Infinity Stone $GEMS.C owns 2 connecting properties to $PMET’s world class Corvette Lithium project. the taiga lithium project of $GEMS.C has assays as high as 4.6% Li2O
  • Infinity stones to commence drilling on its rock stone graphite project after receiving the permits, this project is highly prospective of graphite and will help fill the potential deficit

$GEMS.C project portfolio is impressive ranging from lithium to copper and the business model seems resilient to potential volatility in the battery metal space, they have started drilling and exploring at a swift pace in the mining friendly province of Quebec and are prepared to compete for a major market share.

Analysts rate Lithium Americas Corp(LAC:TSX) with a consensus Strong Buy rating

Analysts rate Lithium Americas Corp with a consensus Strong Buy rating and a 12-month average target price of $51.64 per share.

Based on the Lithium Americas Corp stock forecasts from 7 analysts, the average analyst target price for Lithium Americas Corp is CAD 51.64 over the next 12 months. Lithium Americas Corp’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Lithium Americas Corp is Bearish, which is based on 2 positive signals and 7 negative signals. At the last closing, Lithium Americas Corp’s stock price was CAD 26.49Lithium Americas Corp’s stock price has changed by -5.90% over the past week, +0.95% over the past month and +58.72% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.