Pantera lays out USA lithium ambitions
Our micro-cap Investment, Pantera Minerals (ASX: PFE) gave us a good look at what the future holds for its USA lithium project today.
It also laid out what PFE has accomplished in a short space of time at its Smackover Formation lithium project in Arkansas, USA.
Check out the new presentation below (link in image):
PFE will also hold an investor webinar on Thursday 26 October 2023 at 11:30am AEDT where CEO Matt Hansen will provide an update on the company.
Click here to register for the webinar
To date, PFE has leased ~9440 acres of subsurface mineral rights in the rapidly emerging brine hub of the southern state which is home to the following much larger companies:
- US$433BN Exxon
- US$16BN Albemarle (the world’s biggest lithium producer by market cap)
- US$623M Standard Lithium
- US$782M Tetra Technologies
This acreage number represents 77% growth in leased land for PFE which is currently capped at ~$6.5M.
In August, PFE secured a 35% interest in the company doing the leasing and today’s presentation outlined PFE’s intention to increase its interest in this company subject to negotiations and approvals.
Since then PFE has been utilising a proprietary database to piece together the land jigsaw in Arkansas.
Attention will soon turn to what grades PFE might be able to turn up…
Concentrations of lithium in the Smackover range from 150-600+ mg/l - higher grades improve the economics of any potential project.
We also see PFE’s move to quickly acquire up to +50,000 acres in the area as a well-timed move given the large amount of capital that is flowing into the region.
The valuation upside case here is relatively straightforward - more acreage, more lithium - all in the land immediately adjacent to Exxon’s project:
As always, there are risks involved in PFE’s efforts to establish a position in the Smackover formation during a land rush.
However, the 77% growth in acreage in just two months since PFE moved on the area is rapid progress in our eyes.
Here’s what we were most drawn to in the deck in terms of PFE’s future activities at the project.
What’s next for PFE?
Slide 16 of the deck outlines what’s next for PFE:
In addition to updates on further leasing numbers, we’re looking for PFE to lay the foundations for a well re-entry which would allow PFE to establish the grades of lithium on its acreage.
Well re-entries are generally lower capex and if PFE can get a good grade - say in the range of Standard Lithium’s 634mg/l we’d see that as a very successful result at this early stage for PFE.
A lithium exploration target would also provide a strong barometer of what amount of lithium PFE expects it can find across its acreage.
