Talison Lithium Limited (TLH - TSX)
Fortifying Its Position As A Top Producer - Thursday, March 10, 2011
Over the last 12 months, Talison Lithium has made significant strides in growing its investor base and solidifying its position as the largest producer of lithium concentrate in the world. The company recently completed the first phase of expansionary work at its wholly owned Greenbushes mine near Perth, Australia and has set out to double its production capacity to an estimated 110,000tpy LCE per by F2013. Concurrent with its recent listing on the TSX, the company also purchased the Salares 7 lithium brine project in Chile. As such, Talison offers investors exposure to its current and growing spodumene production at Greenbushes, exploration upside from the brine projects at Salares 7 as well as leverage to accelerating lithium demand. Our outlook for the lithium sector remains positive. Demand for lithium, driven primarily by the growth of electric vehicles, is set to grow exponentially over the longer term. On the supply side, while there is no shortage of lithium deposits, customers are becoming highly discriminating, valuing security and quality of long-term supply. This is a customer base that Talison is ideally suited to satisfy.
