March 23, 2022

First New Americas Battery Metals Producer in a Decade | South Star Battery Metals $STS $STSBF

Midas Letter
Midas Letter
First New Americas Battery Metals Producer in a Decade | South Star Battery Metals $STS $STSBF
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This is the best time in a decade to have projects lined up and ready to go in the battery metals space. South Star Battery Metals Corp (CVE:STSOTCMKTS:STSBF) is fully licenced and permitted to become the first new battery metals producer in the Americas in a decade.

“It’s really exciting times for us. We’re fully licensed, fully permitted. Finalizing our financing, we should be sticking shovels in the ground in the next 45 days or so. 12-month construction commissioning schedule, so we’ll be in commercial production basically mid-May 2023 and we plan on scaling up from there.” – South Star Battery Metals CEO Richard Pearce

With the price imbalance for battery metals increasing because of the tremendous growing demand, being one of the first projects to be licenced and coming online is a great opportunity. CEO Richard Pearce believes the current and future market conditions leave the company in the position to be a billion-dollar company in 5-7 years.

“Things are exploding. I think there are significant imbalances in the supply/demand for all battery metals, but particularly graphite. I think similar to what you have seen in the lithium space where pricing has gone through some significant pressures and increased 10-fold, 20-fold. I think we will see similar to that in the graphite space. A fantastic time to be involved.” – South Star Battery Metals CEO Richard Pearce

South Star Battery Metals is focused on industrial minerals and battery metals for the clean energy revolution. The company’s Santa Cruz project that is heading towards production is located in Brazil – one of the premier battery metals jurisdictions in the world.

The three most profitable mines in production are in Brazil.

South Star will be cost-competitive against Asian production, allowing the company to still profit through the ups and downs of commodity cycles.

But, with battery gigafactories, electric vehicles (EV), expandable graphites and different uses for graphite exploding, the appreciative pricing pressure of graphite should ensure shareholder value for cost-effective graphite producers.

Transcript

00:00 – South Star Battery Metals $STS $STSBF CEO Richard Pearce
00:44 – Company updates nearing battery production
02:12 – Economics of production
03:56 – Cost profile comparison
05:36 – How long will graphite demand outweigh supply?
10:57 – Customer relationships
11:50 – Material selling-out
12:52 – Exposure to graphite price rises

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