One of the undercover stocks that’s making a big move today is that of American Battery (OTCMKTS:ABML). At the time of writing, ABML stock has surged roughly 30% higher on news of a major lithium find at a key property in Nevada.
The company reported via an inferred resource report that its Tonopah Flats Lithium Project could support the production of approximately 200,000 tons of claystone per day. This mine, located in Big Smoky Valley, Nevada, encompasses more than 10,000 acres of land. Notably, the company controls the entirety of the mining claims for this property. Thus, any future cash flows associated with lithium mined from this prospective location should, theoretically, flow through to shareholders.
Let’s dive into what to make of this remarkable news today.
ABML Stock Surges on Key Lithium Find
Now, plenty of work will need to go into permitting and developing this site. The company has acknowledged in its press release as much. As noted by CEO Ryan Melsert:
“[T]he identification of an inferred resource in and of itself is not enough to address our critical challenges of increasing our domestic production of critical battery metals, reducing the costs of manufacturing of these battery metals, and decreasing the environmental impacts of their production.”
Additionally, the CEO noted that the company has spent several years developing technologies to effectively mine lithium from this site. While it may take years for this project to get started, the initial findings from this survey are impressive.
Given the current geopolitical climate, as well as the desire for companies and governments to on-shore production, the fact that ABML has one of the largest prospective lithium despots on its property is encouraging. Investors certainly have an intriguing long-term play with this stock. It’s on my watch list now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.