Lithium the Wonder Metal

Lithium the wonder metal
December 5, 2015GMM, GXY, Lithium, Mining, PLSGMM, GXY, PLS
Lithium, the world’s lightest metal with the highest electrochemical potential, and hence its use in energy storage batteries. Largely because of this, lithium has been one of the strongest performing commodities in the last twelve months. The potential growth in hybrid and electric vehicles requiring mass energy storage systems is likely to maintain the demand for the metal. Currently almost 95% of batteries used in electronic devices have adopted lithium-ion as the technology of choice. Furthermore, It has been predicted that the lithium market driven by growth in battery demand will increase by 285% between 2014 & 2025*
General Mining Ltd. (ASX: GMM) 50%, in association with Galaxy (ASX: GXY) 50% is developing the Mt Cattlin deposit in Western Australia. The project has a 17 year minelife at a mining rate of 800,000 tonnes/year. Further drilling is expected to increase the ore resource. The project will be on stream in Q1 of 2016. General Mining Ltd. claims that the Nett Cash Flow in the first three years of full production will be $120 million**, with 50% to GMM and 50% to GXY. General Mining Ltd has signed a sales and distribution agreement with Mitsubishi.
General Mining Ltd has a current Market Capitalisation of $46 m, which is very conservative in light of the imminent cashflow, and compared to Pilbara Minerals (ASX: PLS) whose current Market Capitalisation is some $240 m and not due to come into production before 2018!
There are two daily chart of GMM below , the first is the usual with RSI(7) inset, and the second is of GMM with the daily volume of sales. have shown this, because as Granville said many years ago, volume is what makes the choo choo go!
GMM Daily
The following graph is with daily volumes shown in the bar graph above the price graph. Note the linkage between increasing volume and increasing price, particularly as volume accelerates past its five day moving average and 50day moving average.
GMM Daily Volumes
*Source: SignumBOX estimates, CEMAC 2015