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Being In The Right Markets At The Right Time, Surge Battery Metals Stock Enters Rally Mode (OTC: NILIF) (TSXV: NILI)

When markets are weak, find pockets of strength. Doing so isn't as hard as one may think. In fact, underneath general market carnage, there is always a sector that stands out for investor interest. Right now, that sector is EV battery metals. And small-cap metals exploration company, Surge Battery Metals, Inc. (OTC: NILIF) is showing that being in the right industry with the right products at the right time does have its advantages.

Of course, NILIF stock being higher by more than 16% since the start of the month certainly supports that premise. And while its month-to-date gains are impressive, keep in mind NILIF shares had traded more than 44% higher this month when the bulls were busy picking at exposed value-investment opportunities. Thus, while NILIF stock may be drawn lower as the NASDAQ posts sub 14,000 levels, every indication suggests that when the NASDAQ shows strength, Surge Battery metals stock can considerably outperform market gains on a percentage basis. Not only that, with many battery metals and some elements posting ATH prices, NILIF is targeting a perfect storm of revenue-generating opportunities that could transform this junior-sized exploration company into a revenue-generating juggernaut.

The better news is that can happen sooner than later as skyrocketing demand for EV's, and the battery metals needed to power them, are creating metals pricing power well beyond normal levels. Indeed, that's excellent news for exploration companies, like Surge Battery Metals, and help them to score deals that are more than immediately accretive to the company, they also solidify their position to be prominent players in one of the fastest-growing and vital sectors of the generation.

That could be great news for Surge Battery Metals and its investors, especially noting that NILIF is better positioned than ever financially and operationally to take advantage of near and long-term market opportunities that could be worth hundreds of millions of dollars in revenues once exploration turns to dig.

Best of all, unlike many of its peers, NILIF has positioned itself to leverage work done in 2021 to make 2022 its most prosperous time in company history. Hence, despite impressive February gains, there's likely much more to come.

Deals, Assets, And Properties Expose Valuation Disconnect

In fact, that's probable, considering that in 2021 Surge expanded and enhanced an already impressive list of operating assets, completed a capital raise that put them in one of the best cash positions in their history, and took measures to reduce the risks inherent in the battery metals exploration sector by committing to projects in some of the world's most mining-friendly jurisdictions. Not only that, Surge entered into new deals that should steepen its growth trajectory while diversifying its revenue-creating interests.

One deal that can have a significant and positive near-term impact for Surge is its option agreement with Lithium Corporation (OTCQB: LTUM). That deal alone has the potential to transform this small-cap battery metals exploration company into an industrial super-supplier that can compete on a scale with even the largest mining and exploration companies. Better yet, the benefits can be accretive sooner than later by giving NILIF immediate revenue-creating exposure to the burgeoning EV battery metals and elements sector, which is expected to remain one of the most important emerging markets in terms of revenue generation in decades.

From an assets perspective, the agreement provides significant claim interest in the 5,560-acre prospect area, with Surge leveraging excellent terms that allow it to maximize its interests and keep its balance sheet healthy. Instead of a mass cash outlay, the deal structure allows Surge to make staged cash and share payments and incur a defined $1,000,000 in exploration expenditures to earn an undivided 80% working interest in the San Emidio Lithium-in-Brine property. This allows Surge to retain the bulk of its $4.2 million in excess working capital reported at the end of last quarter. For a growth company, that's important.

And Surge is showing it intends to get bigger. In January, Surge announced it had staked a 1,640-acre property in the Teels Marsh Playa in Mineral County, Nevada. This agreement has the potential to transform Surge's business model by providing numerous revenue-generating opportunities in an active region for lithium exploration and production about 84 km northeast of Albemarle's Silver Peak brine mining operation. It's also good to know that in the mining and exploration business, past performance can indicate future success. And with the region flush with proven reserves, that's potentially excellent news for NILIF. Investors, too.

Perhaps best of all to the NILIF value proposition, to de-risk its operations, Surge has chosen its sites strategically to take advantage of unearthing metals in the most mining-friendly jurisdictions in the United States and British Columbia. Thus, in addition to alleviating threats of operations disruptions by environmental groups or geopolitical uncertainty, Surge can more comfortably invest its dollars to drive revenues higher quicker while diversifying its interests to expedite revenue-generating opportunities throughout its multi-country operations.

EV Industry Ushers In Trillion-Dollar Global Opportunity

Keep in mind, too, Surge's target market is growing larger by the day, with demand from the Electric Vehicle ushering in revenue-generating opportunities at unprecedented levels. In fact, while a massive market now, estimates expect the industry to become an almost trillion-dollar market by the end of the decade. Thus, a behemoth of an industry now will grow exponentially in the next eight years. And that means that even as incremental growth gets posted along the way, the potential for NILIF to cash in substantially during the process has never looked better from an operations perspective.

Indeed, the recent jump in NILIF's valuation indicates that investors notice, and are taking advantage, of the valuation disconnect between assets and share price. And the more excellent news is that they are seizing upon a gap taking into account current holdings. Considering that Surge continues to make deals, their investment now could also tap into near-term price appreciation by taking advantage of a market cap that appears to significantly undervalue a growing portfolio of intrinsic assets. Adding inherent potential adds a multiple to that number, and pencil to paper shows why the investment proposition is attractive.

Metal-Rich Assets Expose Valuation Disconnect

In fact, a sum of its parts points toward NILIF stock moving considerably higher. In addition to a potentially lucrative deal with LTUM and expanding into Teels Marsh Playa, NILIF is expected to benefit appreciably from investments in three mining locations with high projected yields of metals used in battery production. Thus, while recent prices are higher, Surge has ample firepower to continue its trend higher based on surveys performed and geological mapping.

Part of that firepower will come through one of Surge's exploration projects within the borders of British Columbia. This project includes two areas rich in copper, nickel, and other valuable metals integral to battery production. Located 7 miles away from BHP's Island Copper Mine, Caledonia sits within a 31-mile-long copper belt, and the 4,302-acre allotment boasts a high recovery rate of both copper and silver. The second area, located in Central British Columbia, sits adjacent to known nickel deposits, indicating a high likelihood of similar deposits in the area. Surveys of this area have additionally indicated hard nickel, cobalt, chromium, and awaruite concentrations, all of which represent tremendous opportunities for revenue for Surge.

In addition, Surge is also partnered with Lithium America, America's only current lithium producer, to develop its Northern Nevada Lithium Project. Lithium is one of the most critical elements for battery production, and its demand is spiking not only due to the advancement of Electric Vehicles but also as a prerequisite for most battery-powered electronics. As such, Surge plans to combine innovative advances in mining efficiency with extensive marketing experience in the battery metals industry to capitalize and maximize the potential from the wealth of resources in Northern Nevada.

Riding The Tailwind Of Surging Demand for EV Metals

Here's the best news longer term. The record-high demand for battery technology won't be short-lived. Better still, the ongoing revolution in battery-powered tech and the metals and elements needed to make them are expected to soar alongside that interest. Of course, that makes sense; one can't go without the other. Even better, unlike the turbulent asset prices of the rare earth metals markets a decade ago, the demand for battery metals and elements such as lithium is expected to be a more stable and robust contributor to mass-market applications.

Naturally, selling into various applications and having pricing visibility is vital for element and metals miners like Surge. Fortunately, analysts project bullish bias in both demand and prices. Also important is a company's ability to capitalize on its opportunities. Surge can, powered by recent confirmation that it is fully funded to complete its planned 2022 explorations with plenty of reserves available to address new project opportunities. This, combined with an impressive asset portfolio that expects to power growth in 2022, provides an additional reason for NILIF bulls to stake a claim at current prices.

That's not all. Another consideration in Surge's favor is that they mitigate operational risk by employing the most efficient and responsible mining methods and practices. Simply put, Surge's approach to exploration and mining is different from riskier mining operations, mitigating risk by utilizing advanced prospecting, geological mapping, and rock and soil sampling to determine which properties provide the most efficient mineral recovery opportunity. Furthermore, Surge has already established a robust network of sales channels, meaning there are likely to be fewer costs associated with supply chain management.

Another factor putting an exclamation point on the NILIF value proposition is analysis pointing toward a likely near-term spike in demand for battery metal markets. For Surge, that's excellent news since a significant portion of Surge's unearthed assets comprises copper, nickel, and lithium. And while the market is strong now, analysts expect the metals to grow by a factor of 15 by the end of the decade. Furthermore, because Surge enjoys the status of an ESG (Environmental, Social, and Corporate Governance)-mandated firm, it could benefit them in a business perspective by 3X compared to non- ESG-mandated firms.

By the way, Surge's ESG designation better equips them to take advantage of competitive and quick-moving markets by enhancing its ability to meet demands ahead of even more senior mining companies. Therefore, the descriptive fits when Surge gets referred to as a small-cap exploration company with big-time clout.

And Attractive And Compelling Investment Consideration 

At the end of the day, the totality of Surge Battery makes the investment proposition not only attractive but compelling. Already, a back of the napkin calculation supports its current assets alone are worth a multiple more than its current valuation. Not only that, NILIF shows that when markets are challenging, they can decouple from weakness and move higher against the grain of broader market declines. Investors are right to notice the inherent strengths, too. Surge Battery Metals has ample cash on hand, is leveraging several deals to generate significant shareholder value, and is willing to make deals when the opportunity is accretive to growth.

In addition, as noted, NILIF is maximizing its opportunities in the right sector at the right time and targeting sales in metals markets that are soaring. Also, exploration projects in the world's most mining-friendly jurisdictions, a robust network of connections in the industry, and operations in several of the world's most proven mining locations make Surge Battery Metals, especially at current prices, an investment opportunity too big to ignore. Hence, don't.

 

Disclaimers: Shore Thing Media, LLC. (STM, LLC.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC.has been compensated up to twenty-thousand-dollars via wire transfer to produce and syndicate content for Surge Battery Metals, Inc. for a period lasting one month. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website by visiting primetimeprofiles.com/disclaimer.

 

The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. 

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