Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi M&M, could you give an update regarding PMT, a while back 06/12/2024 you stated, ‘if the Li price does turn the company could be on a majors shopping list’. Global battery metals giant Albemarle (ALB US) took a $C109m stake in Patriot Battery Metals (PMT), has that money been put to good use or has the PMT shares suffered dilution. Are they a buy in M&M opinion. Thank you for making me wealthier.
Hi Tony,
Patriot Battery Metals (PMT) has now changed its name to PMET Resources Inc., but the ticker code remains the same.
In mid-2023, global lithium giant Albemarle (ALB US) invested ~$C109 million (~6.4% of PMT on a non-diluted basis) at $C15.29 per share, which was a premium to market at the time and seen as validation for the company’s Corvette lithium project and its strategic quality. However, the Memorandum of Understanding (MOU) with ALB expired after ~9 months and was not extended, meaning ALB is no longer pursuing the downstream partnership, though the investment itself remains.
NB PMET is dual listed in Australia and Canada.
The ALB stake was well-timed and funded meaningful development work, but the big strategic tie-up that would have driven a material re-rating hasn’t materialised yet. PMET still offers exposure to a significant lithium asset, but the pathway to a major acquisition premium is now more likely to come from future partnerships or production success, not the Albemarle deal itself.
On Thursday PMET announced they’d found wide and high-grade lithium at the Vega zone within its Shaakichiuwaanaan property in Canada sending the stock up +8%. If lithium can continue to advance PMET could become a M&A target but for now this $1.2bn company continues to burn cash and is expected to for at least 3-years, hence it’s not for us at this stage.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
