LithiumLithium is a rare metal that is used in the production of rechargeable battery cells. With stored energy demands increasing every year, lithium mining companies could become extremely valuable over the next decade. Critical Elements Corp. (OTC: CRECF) is a penny lithium stock today, and its performance on the market has not been inspiring. However, long term investors could find that this affordable stock is able to provide returns.

Critical Elements Corp. is running at a loss today, and it could take years until the company is profitable. Even so, patient investors could find this stock to be well worth the investment. The company has recently completed its Environmental Impact Statement for its Rose Lithium-Tantalum Mine in Canada. The Canadian Environmental Assessment Agency has confirmed that the statement has been submitted, taking the company one step closer to ground-breaking on the mine.

This company’s future rests on this project going ahead. The project will run for 17 years, producing 186,327 metric tons of chemical-grade lithium concentrate per year. The company will extract and process lithium on site, at an initial operating cost of $458 per ton. Market price assumption of $1,500 per ton of lithium concentrate will allow for significant profit margins.

This stock is clearly risky. Government approval is still needed for the mining project to go ahead. The Environmental Impact Statement is promising, with the company seeing no major obstacles to starting operations within the next decade. With stock being so affordable, this would be an excellent pick for investors who are willing to speculate based on alternative energy and future technologies.

Key Data:

  • 1 Year Price Growth: -53.97%
  • YTD Price Growth: -36.43%
  • 3 Month Price Growth: -23.03%

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