Introduction to American Manganese Inc. by Alphastox
Dear Alphastox Subscribers,
I wanted to briefly introduce you to a company I recently took a position in: American Manganese Inc. (TSXV:AMY). Before I go into detail, this is a company that needs to get on your radar screens right away. I just took a position in the company’s financing which they closed last week at $0.24/share and am excited to be a part of what could become one of the most exciting stories of 2018.
Their approach to the lithium and cobalt craze is unique and completely sets them apart from everyone else in the industry. Rather than drilling a plot of land and hoping to hit cobalt/lithium, their working on a lithium-ion battery recycling research and commercialization program that turns sourced cathode scraps from the United States and ground active materials from a lithium-ion battery recycler in Europe into lithium carbonate and cobalt which are trading at $13,700/tonne and $83,223/tonne respectively. They’ve engaged one of the most sought-after research institutes in the field – Kemetco Research Inc.- to help develop three new IP extensions as well as the engineering, design, construction, commissioning, installation and testing of their new pilot plant. The total budget approved by the company is $2,277,000 including contingencies and is expected to take 12 to 15 months. With that being said, we can expect a lot of news and updates to come over the coming months. As they work to develop their IP and buildout their plant, I wouldn’t be surprised to see a lot more activity in the market.
Their revolutionary IP could be worth multiples of the company’s current market cap today of $41M, and this latest financing, which they just oversubscribed, gives them the necessary capital they need to take their technology to the finish line and potentially return their shareholders substantial value in the market.
I am extremely excited to be involved with this team and look forward to following their progress and updating my subscribers along the way.
More details on the company below:
American Manganese aims to capitalize on its patented technology and proprietary know-how to become the industry leader in recycling spent electric vehicle lithium-ion batteries and recovering 100 per cent of the cathode metals such as: lithium-cobalt, lithium-cobalt-nickel-
The Market Opportunity
High Purity Cathode Materials from Recycling Lithium Ion Electric Vehicle (EV) Batteries
American Manganese Inc., has successfully completed proof of concept testing and filed for the US Provisional Patent Application. Has studied potential downstream benefits to guide the Company’s next new IP work and the pilot plant operation. The Company has successfully recycled and recovered 100% of the cathode metals, Lithium Cobalt LCO, Nickel manganese cobalt NMC, nickel aluminum cobalt NCA and lithium manganese LMO. Work to date suggests 100% recovery rates of cathode metals at industry-standard purity levels, ready for reuse.
Strong Market Fundamentals
High value of cathode material in EV Batteries. Cobalt at $83,223/tonne. (Tesla Model S – Cathode Material $8,263/battery. Bloomberg New Energy Finance (BNEF) projects electric vehicle sales to reach 41 million by 2040. AMY recycling opportunity considered the most advanced of all known Recycling Technologies.
Worldwide Recycling Opportunities
Plant can be portable and located worldwide. Projections of Lithium Ion Batteries to reach end of life will be 849,000 by 2025 according to a recycling international article dated Jan 29, 2016. Currently a $3.00/pound tipping fee for receiving batteries.
Lithium Cobalt Critical to EV Lithium Ion Batteries
Lithium and Cobalt supply is shrinking while demand increases. Cobalt to be in deficit supply by year-end. Price has increased 250% in last year. Cobalt is a high-density metal essential for battery power and increased distance between charges.
Provisional US Patents Registered & Applied
Company has applied for US provisional patent on recycling Cathode Material Lithium, Cobalt, Nickel, Manganese, and Aluminum. Will immediately apply in other countries after receiving full patent. Company holds patent in the US, China and South Africa for production of electrolytic manganese metals from low-grade manganese deposits in the US.
AMY is developing something so unique, that the company was mentioned in Bloomberg news on February 12th by Samsung! Here’s a link to the article:https://www.bloomberg.com/
In addition, take a look at an interview Larry Reaugh, President and CEO of AMY did with www.Howestreet.com where he explains the opportunity in more detail:
https://www.youtube.com/watch?
As always if you have any questions, please don’t hesitate to get in touch with me anytime. I look forward to hearing from you.
Best,
Etienne
Disclosure: Transcend Capital Inc. is a shareholder and has been paid a fee
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https://americanmanganeseinc.com/news-publications-2/press-releases-2/
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