It hasn’t been long since we last reviewed the performance of LIBERTY ONE LITHIU COM NPV (OTCMKTS:LRTTF). For anyone who didn’t get to read that piece, you can access it here.Back then, the good news was linked to their geographical survey: one which told of a potential existence of lithium beneath much of LRTTF’s 160 km2 licensed mining area at the Pocitos West property. During this period, their share price went up nearly 25% from $0.45 and closing just shy of $0.55 by the end of the month.This, however, was not going to be the end of their bullish run.New information pertaining the company’s ability to mine this lithium has come as no surprise to the market. On the 17th of October, management announced the receipt of permits legalizing their mining activities in the region, a move bound to generate revenues for them long into the future given the ever-growing nature of the lithium industry.The market has since rewarded them handsomely with a valuation that befits such welcome news. The share price has gone up nearly 300% from a price of about $0.50 to a record high of $1.41 as can be seen in the chart below: LRTTF Daily ChartWith such appealing numbers being rare to come by in a market as competitive as the lithium industry, it would be safe to say that LRTTF are doing something right to deserve such a valuation.Given the above, it is important that we introduce the company to first time readers first then dive into the main issue at the time, how they are expected to benefit from the new venture.Lithium Mining and its perksLithium, for readers with a rudimentary understanding, is a soft silverly-like alkali metal which under standard conditions is the lightest metal and the lightest solid element.Global trends have made its value rise beyond figures that were initially unimaginable courtesy of one name: electronics.Lithium and its compounds have several industrial applications, including heat-resistant glass and ceramics, lithium grease lubricants, flux additives for iron, steel and aluminum production, lithium batteries, and lithium-ion batteries. Key among this, however, are the lithium and lithium-ion batteries which have been seen to be important components especially in the production of electric cars.The industry is on a growth path, a factor which was exemplified by a TMR report which stated that the global lithium-ion battery market will be worth US$77.4 billion by 2024 exhibiting a healthy CAGR of 11.6% from 2016 to 2024.The above information places LRTTF at a pivotal position both to align itself with major players within the industry as well as position itself for growth into the future.LRTTF on a clear growth pathThe company was founded in 1996, registered in Vancouver, Canada, with a clear goal, to be engaged in the exploration of mining properties. Since then, they have stuck to this strategy without deviating.The Company was previously engaged in the exploration and production of oil and gas interests located in Ontario (Canada) and Montana (USA). However, with the rise in the demand for lithium products worldwide, the management chose to switch to its mining, basing its decision on the long history their team had in the industry as well as the potential the lithium mining sector held.As earlier stated, they had a positive outcome from their geographical survey that showed over 160km2of lithium deposits buried below land they had invested in. Even better was the fact that the deposits in some areas went as low below the ground as 150 meters, allowing them a lot of room to mine into the future.Welcome news for the shareholders, but that’s not all.On October 2017, the management announced the receipt of environmental and drilling permits, allowing them to begin extraction as at the end of the month. The company is currently exhibiting confidence in its team as well as their ability to efficiently and effectively mine the material from the site.Their CEO, Brad Nichol was quoted stating:
"The team in Argentina has once again demonstrated their proficiency and expertise. Not only did they receive the necessary permits without any issues, they also successfully completed the analysis of the previously announced Vertical Electrical Soundings ("VES") survey enabling us to choose some excellent drilling targets. I cannot understate the importance of having an experienced team in the field."
Source:Currently, the firm is working out the logistics of the mining exercise with pressure being mounted on the team to deliver (as they have previously done). Management believes that this drilling and mining process will be their saving grace and that it will raise them to the next level: ensuring they put a smile on the shareholders’ faces.In addition to this, the past has seen managers within the corporation work tirelessly to ensure that the financial position of the over $62 million company does not limit their growth trajectory.Despite making losses of about $187,000 in the first quarter of 2017 as compared to $126,000 in 4Q2016, their cash position which will be important for this venture grew by over $374,000 to end the quarter at $784,000.Furthermore, their book value closed at $1.2 million from $658,000 as a result of additional equity granted to the company.These two tell to the market’s belief of future returns. As such, we believe that the company will grow further into the future and satisfy the expectations of shareholders going forward.ConclusionLRTTF is well positioned for growth in an industry whose demand is ever-rising. They have beaten the odds and grown into a force within the industry. As such, investors will benefit significantly as they watch their investment grow into the future.We will be updating our subscribers as soon as we know more. For the latest updates on LRTTF, sign up below!For the complete story on LRTTF, check out our full coverage.Disclosure: We have no position in LRTTF and have not been compensated for this article.
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