Lithium Mines: Pure Gold or Fool's Gold?

Is AMLI truly onto something groundbreaking or just another case of empty promises? [Image] The weather outside isn’t the only thing hot. The market has been sizzling lately, and an old friend, the EV sector, is shining bright once again. Today, we’re discussing a company that claims to hold the key to the electric vehicle revolution. No, it’s not Tesla…but rather American Lithium Corp (Nasdaq: AMLI), a self-proclaimed expert in transforming lithium mines into “pure gold.” By now, we all know how important lithium is and its roles in electric car batteries. But the burning question: Is AMLI truly onto something groundbreaking or just another case of empty promises? I’m here to find out. American Lithium Corp (NASDAQ: AMLI) - 1-month trading range: $1.80 - $2.05 - Typical average daily volume: ~398K - Float: ~209 million American Lithium Corp Business AMLI is a mining company that claims to have significant lithium and uranium deposits in the Americas. According to their data, they boast 9.8 million metric tons of lithium carbonate in the measured and indicated category, along with an additional 5.66 million tons in the inferred category. These figures suggest substantial lithium resources, which could be valuable considering the growing demand for lithium-ion batteries, particularly in electric vehicles. Lithium is a crucial component in the production of batteries for electric vehicles (EVs), making it a highly sought-after resource in the growing EV industry. [O6NgpI8gkCuKog__UNdUqhTTl--0A_EGBnfk_OkmB3j0PiQ13JNxP2x6-EK-nMSfM-fkBmkqlSkOi102LVJoph_kn1a81pj1hQj6kQg8n61sW28FYGmRLIHUmDUeGEExLukCTdH-6CtGb_MTPCa0jIs] Source: [American Lithium Corp.]( In addition to lithium, AMLI also states that they possess one of the largest undeveloped uranium deposits. Their indicated and inferred uranium oxide resources are reported to be 51.9 million pounds and 72.1 million pounds, respectively. Uranium has been viewed as a potential clean energy source, and many countries are now warming up to the idea. In the past the fear of a nuclear disaster is something that kept them away from uranium. If AMLI is a lithium play, it’s nice to know that it has some optionality with its uranium assets. Financially, AMLI states that they have a strong balance, with $34 million in cash and no debt or royalties. While AMLI highlights the potential of their projects, it's important to approach their claims with a critical mindset. Mining projects often face technical, regulatory, and market uncertainties that can significantly impact their outcomes. Not to mention, they’ll be burning through cash if they don’t have income coming in. Financials [TIRJdoHEBn8aZSALu3mQizaa82m1-aAa7cwnd1vpdbXC6LHuupuZmpLqzxgFOd3I72oRi72ZgfIAYAOxc6LQvQqEC8EhiG0whA7q-nPz6pb58zzxWGL5DTP8mr42UP8Yi_bs7MwsuiH0jaYMXfbjk74] [Source: Stock Analysis]( Red flags…red flags…red flags The income statement reflects consistent losses, with negative net income and operating income in all reported periods. This indicates a lack of profitability and raises questions about the company's ability to generate sustainable earnings. The balance sheet reveals relatively low levels of cash and equivalents, coupled with a significant amount of debt. This liquidity position may limit the company's flexibility to pursue growth opportunities or withstand unforeseen financial challenges. Additionally, the negative book value per share raises doubts about the company's underlying value. Examining the cash flow statement further emphasizes the financial struggles faced by American Lithium Corp. Negative operating cash flows and free cash flows, along with the reliance on financing activities, indicate ongoing cash burn and potential difficulties in funding operations. Considering these factors, potential investors should approach American Lithium Corp with caution. The company's financial performance raises concerns about its long-term viability and ability to deliver returns to shareholders. Promoter Activity I received word about this stock from one promoter's website. Here are there main highlights from their “investor awareness” campaign: - AMLI is positioned as an emerging opportunity in the lithium market - The U.S., China, and other global auto manufacturers are competing to secure lithium mines, making AMLI a potential buyout candidate - American Lithium's primary project, TLC, located in Nevada, has the potential to be a major producer of low-cost, high-purity lithium carbonate. - The company's measured and indicated resources exceed the estimated U.S. lithium reserves, positioning it as a significant player in the industry. - American Lithium also holds a lithium project in Peru, strategically located outside the Lithium Triangle, with favorable economic prospects. - The company's projects have substantial net present value (NPV) even at conservative lithium price estimates, making it an attractive investment opportunity, but investors should conduct thorough research and due diligence before making any investment decisions. The promoter didn’t highlight a specific catalyst, which would have helped create some greater urgency. Nonetheless, the promoter is receiving $100,000 to run this awareness campaign from June 12, 2023 through August 12, 2023. Straight to the Facts With no real catalyst, you’ll need some strong EV news to jump on this symbol. It’s definitely worth keeping on a watchlist, but you probably need significant news for this to move…given its massive float. Baron Von Stocks Red Oak Media Group, 7940 Ann Arbor St Dexter MI USA 48130 To update contact information or unsubscribe from this list, please [click here](