A Quick look at Infinity Lithium Corporation Limited

Australian listed minerals company, Infinity Lithium Corporation Limited (ASX:INF) is mainly involved in the production of battery grade lithium hydroxide. Along with ASX, the company is also listed on the Frankfurt and Stuttgart Stock Exchanges which increases the company’s exposure to European investors. The company is in a joint venture partnership with Valoriza Mineria to develop the Flagship San Jose Project.

The company recently increased its ownership from 50% to 75% of the San Jose Lithium Project. The San Jose Lithium Project is considered as one of Europe’s largest lithium deposits, located near to European market, making it an important asset for potential strategic partners and offtake consumers of the company.

Recently while providing an update on sustainability and carbon footprint requirements in Europe, the company informed that European Commission (EC) is promoting lithium refining as part of a broader strategy to develop an entire LIB value chain in Europe which is very encouraging for the company.

During the half year period, the company completed a Scoping Study with regards to the development of the San Jose Lithium Project including the production of battery grade lithium hydroxide, a higher value battery chemical product.

The Scoping study confirmed that the company is having the potential to become a significant, long-life, high margin lithium hydroxide producer and it also confirmed that project is having strong economic, financial and technical aspects. Following this scoping study, the company shifted the focus of its project from lithium carbonate towards a lithium hydroxide output.

During the half-year period ending 31 December 2018, the company released a JORC Resource at the 100% owned Banio potash project in Gabon. Whilst the potash asset is of proven high-quality, the Company has chosen to focus its efforts and resources on advancing the San Jose lithium-tin deposit. The Company has decided to seek a joint venture partner or divestment of the potash asset.

As at 31 December 2018, the company had total current assets of $2,781,683 and current liabilities of $235,898. For the half-year period, the company reported net cash used in operating activities of $1.356 million and net cash used in financing activities of $500. As at 31 December 2019, the company had Cash and cash equivalents of $2.547 million.

Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. At the time of writing (25 March 2019 AEST 03:57 PM), the stock of the company is trading at a price of $0.088 with the market capitalization of ~$16.74 Million. The counter opened the day at $0.088 and touched a day’s low of $0.084 with a daily volume of ~ 359,693. The stock has provided a year-till-date return of 46.67% & in the past six months, the share price of the company increased by 35.38. It had a 52-week high price of $0.135 and touched 52 weeks low of $0.055, with an average volume of ~221,286.

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