Rick Rule interviews Carlos Vicens, CFO of Neo Lithium Corp., about the fast-moving Tres Quebradas lithium brine project (3Q Project) in Catamarca Province, the largest lithium producing area in Argentina. The 3Q Project is situated within the “Lithium Triangle” — a portion of South America with assets in Argentina, Bolivia and Chile characterized by high altitude salt flats containing elevated lithium concentrations. The project has gone from discovery to the reserve and feasibility stages in less than three years. In referring to the three pillars of lithium — size, grade and lower impurities — Vicens says the 3Q Project is the fifth or sixth largest resource in the lithium carbonate space, has the second highest-grade lithium brine in the world, and has the lowest combined purity of any known salar.
Vicens describes Neo Lithium as tightly structured, with a tight amount of shares and not many warrants. With a market cap of about CA$100 million and CA$40 million in the bank, the company’s project valuation is CA$60 million. It is building a 20,000-ton lithium carbonate battery grade production at a cost of about US$320 million. With an internal rate of return of 49.9% on the investment, says Vicens, the company represents an attractive proposition.
Listen below to Carlos Vicens, CFO of Neo Lithium Corp., break down the company’s growth in the lithium space.
Interview Date: May 14, 2019