Li-FT Power continues to grow its portfolio, recently acquiring 9,681 hectares at the Cali Project and the Shorty West Lithium claim to strengthen its resource base.
With a market capitalization of $130M, a solid $3M cash position, and increasing investor confidence, Li-FT is financially positioned for future growth.
Analysts project Li-FT’s stock price to rise up to CAD 10.00, supported by surging lithium demand and a “Buy” sentiment from investors.
Hey everyone, I’ve been keeping an eye on some formerly popular stocks and decided to check the chart of one in particular. To my surprise and excitement, it has surged 44% in the past month! I’m talking about Li-FT Power (TSXV: LIFT, OTC: LIFFF, FRA: WS0), an exploration and development company focused on hard rock lithium in Canada. Currently trading around $3, there are several factors suggesting its valuation could climb back toward double digits. Analysts are bullish, and the momentum behind this stock looks strong. Definitely worth watching for anyone interested in lithium and renewable energy sectors!
Li-FT Power Will Benefit from the Lithium Demand Growth
Li-FT Power (TSXV: LIFT, OTC: LIFFF, FRA: WS0) is a mineral exploration company focused on the acquisition, exploration, and development of high-potential lithium pegmatite projects in Canada. Its flagship asset, the Yellowknife Lithium Project in the Northwest Territories, is a standout in the company’s portfolio. This project consists of mineral leases covering a significant portion of the Yellowknife Pegmatite Province, which is known for its extensive lithium pegmatite formations. The area hosts numerous spodumene-bearing pegmatites, with some striking up to 1,800 meters in length and 30 meters in width, visible even from satellite imagery.
In addition to the Yellowknife Project, Li-FT holds three early-stage exploration properties in Quebec, presenting strong potential for discovering hidden lithium pegmatites. The company is also advancing its Cali Project in the Northwest Territories, located within the Little Nahanni Pegmatite Group, further diversifying its portfolio and enhancing its position in the rapidly growing lithium market.
Li-FT Keeps Expanding Through Staking and Acquisitions
In a strategic move to bolster its resource holdings and capitalize on the growing demand for lithium, Li-FT Power (TSXV: LIFT, OTC: LIFFF, FRA: WS0) has recently announced significant expansions and acquisitions.
On September 3, 2024 Li-FT Power announced it had significantly expanded its operational footprint within the Little Nahanni Pegmatite District in the Northwest Territories, Canada. The company secured an additional 9,681 hectares at the Cali Project, featuring outcropping spodumene pegmatites which are integral to the extended Cali dyke swarm that Li-FT has been actively delineating.
This strategic expansion was facilitated by the recent governmental approval of the Nááts’ı̨hch’oh Amendments to the Sahtú Land Use Plan in June 2024. These amendments have opened the door for new staking opportunities in the region, a development anticipated since the plan’s initial endorsement by the Sahtú Secretariat Incorporated and the Government of the Northwest Territories back in 2019.
Further cementing its growth trajectory, on July 18, 2024, Li-FT announced the completion of a mineral property purchase agreement with Infinity Stone Ventures Corp. (CSE: GEMS), dated July 17, 2024. This deal secures the Shorty West Lithium mineral claim adjacent to Li-FT’s Yellowknife Lithium Project. The acquisition, pivotal for the company’s expansion strategy, involves the issuance of 12,000 common shares of Li-FT, which are subject to the usual resale restrictions.
The Fundamentals Are Here
Li-FT Power Ltd. is positioned for significant growth based on its latest financial data and analyst forecasts. As of September 3, 2024, the company’s capital structure reveals an issued and outstanding share count of 42.7 million, with options accounting for an additional 1.07 million. Fully diluted, the total share count stands at 43.8 million, and with a share price of $3.04, the company’s market capitalization reaches $130 million. Li-FT’s cash position is strong at $3 million, providing financial stability for ongoing operations and expansions.
Ownership of Li-FT is largely concentrated, with 55% held by founders, while institutional investors hold 17%, retail investors 25%, and management and directors hold a modest 3%. This distribution highlights the heavy involvement of key stakeholders in the company’s strategy and operations. Top institutional holders include Commodity Capital AG, Extract Capital, and Tribeca Investment Partners, all following a growth investment style.
Recent trading activity indicates robust market interest, with average daily trading volumes of 20,503 shares over the last three months. Analysts are optimistic about Li-FT’s future, with a current stock price of CAD 9.25, reflecting a substantial 221.18% increase. The forecast for the next year projects the stock price to rise even further, with estimates ranging between CAD 8.50 and CAD 10.00, signaling potential upside for investors.
The company’s technical indicators reflect a “Buy” sentiment, supported by strong weekly gains of 12.94% and a notable 44% rise over the past month. Despite a challenging year-to-date performance with a 52% drop, Li-FT has shown resilience, suggesting a recovery as lithium demand continues to grow. The overall recommendation leans towards buying, with 12 signals advising to buy, 9 neutral, and 5 recommending a sell position.
Conclusion
Li-FT Power (TSXV: LIFT, OTC: LIFFF, FRA: WS0) stands well-positioned to capitalize on the booming global lithium market, which is forecasted to grow exponentially in the coming decade. With its flagship Yellowknife Lithium Project, as well as promising early-stage properties in Quebec and the Northwest Territories, the company is strategically aligned to meet the increasing demand for lithium, driven by the expansion of electric vehicles, energy storage, and tech industries. Recent acquisitions, such as the Shorty West Lithium mineral claim, further bolster Li-FT’s resource portfolio. Financially, the company demonstrates strength, with solid market capitalization, strong cash reserves, and significant insider ownership. Analysts’ bullish forecasts, paired with a rising stock price and “Buy” sentiment, underline investor confidence in Li-FT’s growth potential.
