Andrew Suckling, Rare Earth Minerals plc (LON:REM) non-executive chairman, today highlights lithium is coming into high demand across the globe due to the rapid technological advances in electric vehicles.
In today’s financial results statement the company, which is developing lithium assets, told investors it is confident that each of its significant projects will continue to grow.
REM has stakes (both directly and indirectly held) in the Sonora lithium project in northern Mexico, where there are plans to produce 35,000 tonnes of lithium carbonate per year.
It also has an interest in the Cinovec lithium project in the Czech Republic, via a stake in European Metals Holdings, as well as the Yangibana rare earth project in Australia and an investment in Macarthur Minerals.
“Highly positive Pre-Feasibility Studies have been published for both the Sonora and Yangibana projects and they represent significant steps forward in the de-risking of each project and establishing their commercial potential,” Suckling highlighted.
“EMH has also recently increased and upgraded its lithium resources at the Cinovec project.”
He added: “The board is committed to the strategy and vision of investing in low-cost, large and scalable lithium deposits.
The company's current investments demonstrate this and were the result of extensive due diligence and detailed research.
“Independent research from industry experts at Roskill has highlighted Sonora and Cinovec as two potentially large suppliers of battery-grade lithium.”
Suckling concluded his statement saying these are “very exciting times” for REM.
The investment company reported a £2.25mln loss for the twelve months to December 31 2015, compared to £3.17mln in the previous year. It said asset value had increased to £19.58mln, from £15.64mln.
At the end of 2015 it had £890,000 of cash, and in early 2016 it raised £3.55mln through an issue of new equity.