UiPath Corp has established itself as a leader in robotic process automation. A positive trajectory in a rapidly expanding market!

 

Report on UiPath Corp.

Introduction

UiPath Corp. ($PATH) is a leading enterprise software company specializing in Robotic Process Automation (RPA). Founded in 2005 in Bucharest, Romania, and now headquartered in New York City, UiPath has rapidly grown to become a dominant player in the automation industry. The company's mission is to "accelerate human achievement" by automating repetitive and mundane tasks, thereby enabling organizations to enhance productivity and efficiency.

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1. Technology Advancements

Robotic Process Automation (RPA) Platform Enhancements

• AI Integration: UiPath has integrated artificial intelligence (AI) and machine learning capabilities into its RPA platform. This allows for intelligent automation that can handle unstructured data, make decisions, and learn from interactions.

• UiPath Platform 2021 and Beyond: The company has continuously updated its platform to include features like Process Mining, Task Mining, and Communications Mining. These tools help organizations identify automation opportunities by analyzing workflows and communications.

• Cloud-Native Architecture: UiPath has developed a cloud-native platform that supports flexible deployment options, including on-premises, cloud, and hybrid models. This flexibility caters to the varying needs of global enterprises.

Automation Suite and Marketplace

• UiPath Automation Suite: A comprehensive suite that includes tools for end-to-end automation, from discovery to measurement. It integrates RPA with AI, process mining, and analytics.

• UiPath Marketplace: An open platform where developers and partners can share reusable components, fostering a collaborative ecosystem that accelerates automation development.

Low-Code Capabilities

• UiPath Apps: Introduced to allow users to build custom applications with minimal coding, enabling faster deployment of automation solutions.

• Integration Service: Offers out-of-the-box integrations with popular enterprise applications, simplifying the process of connecting different systems.

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2. Partnerships

Strategic Alliances

• Technology Partners: Collaborations with tech giants like Microsoft, SAP, Oracle, and Salesforce have enabled seamless integration of UiPath's automation tools with widely used enterprise software.

• Cloud Providers: Partnerships with Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure have strengthened UiPath's cloud offerings, providing scalable and secure automation solutions.

Consulting and Implementation Partners

• Global System Integrators (GSIs): Firms like Accenture, Deloitte, PwC, and Capgemini work closely with UiPath to provide implementation services, strategy consulting, and managed services to clients worldwide.

• Advisory Firms: Collaborations with advisory firms help in educating the market about automation benefits and best practices, driving broader adoption.

Academic and Training Partnerships

• Educational Institutions: UiPath has partnered with universities and training institutes to offer RPA courses, certifications, and resources, aiming to build a skilled workforce proficient in automation technologies.

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3. Customers

Diverse Industry Presence

• Financial Services: Banks and financial institutions use UiPath to automate processes like loan processing, compliance checks, and customer onboarding.

• Healthcare: Hospitals and healthcare providers leverage automation for patient data management, billing, and appointment scheduling.

• Manufacturing and Logistics: Companies automate supply chain operations, inventory management, and quality control processes.

Notable Clients

• NASA: Utilizes UiPath's RPA to automate tasks related to data analysis and mission planning.

• DHL: Implements automation to streamline logistics and supply chain operations.

• General Electric (GE): Uses UiPath to enhance efficiency in various business units, from finance to manufacturing.

Customer Success Stories

• Cost Reduction: Many clients report significant cost savings by reducing manual labor and minimizing errors.

• Productivity Gains: Automation has led to faster processing times and the ability to reallocate human resources to more strategic tasks.

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4. Financials

Revenue Growth

• Fiscal Year 2022: UiPath reported revenues of approximately $892 million for the fiscal year ended January 31, 2022, a substantial increase from $607 million in the previous fiscal year.

• Subscription Model: The majority of revenue comes from a subscription-based model, providing predictable and recurring income streams.

Initial Public Offering (IPO)

• NYSE Listing: UiPath went public on the New York Stock Exchange in April 2021 under the ticker symbol "PATH".

• IPO Valuation: The IPO raised around $1.3 billion, valuing the company at approximately $29 billion at that time.

Profitability and Investments

• Operating Losses: Despite strong revenue growth, the company has reported net losses due to heavy investments in research and development, sales, and marketing to fuel expansion.

• Cash Reserves: UiPath maintains a strong cash position, providing financial flexibility for future investments and acquisitions.

Guidance and Outlook

• Positive Trajectory: The company has provided optimistic revenue guidance for upcoming fiscal periods, anticipating continued growth in the automation market.

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5. Future Business Growth

Market Trends

• Growing Demand for Automation: As businesses seek efficiency and cost reduction, the demand for RPA and intelligent automation solutions is expected to rise.

• Digital Transformation Acceleration: The COVID-19 pandemic has accelerated digital transformation initiatives, with automation playing a key role.

Strategic Initiatives

• Global Expansion: UiPath plans to strengthen its presence in emerging markets across Asia-Pacific, Latin America, and Africa.

• Product Innovation: Ongoing investment in AI, machine learning, and process mining technologies to enhance platform capabilities.

• Industry-Specific Solutions: Developing tailored automation solutions for specific industries to address unique challenges and compliance requirements.

Challenges and Opportunities

• Competitive Landscape: Facing competition from other RPA vendors like Automation Anywhere and Blue Prism, as well as tech giants entering the automation space.

• Talent Acquisition: Ensuring a skilled workforce to support growth, which includes investing in training and development programs.

• Regulatory Compliance: Navigating complex regulatory environments, especially when dealing with data-sensitive processes.

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Conclusion

UiPath Corp. has established itself as a leader in the RPA industry through continuous technological innovation, strategic partnerships, and a strong focus on customer success. The company's robust financial growth, despite operating losses due to strategic investments, indicates a positive trajectory in a rapidly expanding market. With a solid plan for future growth and the increasing global demand for automation solutions, UiPath is well-positioned to capitalize on emerging opportunities. However, it will need to navigate competitive pressures and maintain innovation to sustain its market leadership.

Editor note: 

At this writing we hold no position in PATH, however, we have placed it on our watch list!

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Disclaimer: This report is based on information available up to September 2023. Investors should conduct their own due diligence before making investment decisions.

Addendum, Nov 2024

At their recent UiPath FORWARD conference, UiPath CEO Daniel Dines presented the vision for “Act Two” of UiPath: advancing from their position as a leader in robotic process automation (RPA) to become the world’s preferred enterprise platform for agentic automation. And Chief Product Officer Graham Sheldon’s product roadmap presentation laid out the key goals and milestones for achieving that vision.

uipath.com/blog/product-and-updates/2024-november-release-overview

We bought LAM Research Corp (LRCX) today under $70 PS - Here's why!

Headquartered in Dallas, Texas, Applied Digital Corporation (Ticker: APLD) is growing

 

Applied Digital: Investor Report

Company Overview

• Name: Applied Digital Corporation (Ticker: APLD)
• Industry: Technology Infrastructure, High-Performance Computing (HPC), Artificial Intelligence (AI)
• Headquarters: Dallas, Texas
• Website: www.applieddigital.com

Foundation and Public Offering

• Founded: Applied Digital Corporation was founded in 2001.
• Initial Public Offering (IPO): Applied Digital went public on April 12, 2022, under the ticker symbol APLD on the Nasdaq stock exchange.

Technology Reach

Applied Digital focuses on building next-generation, energy-efficient data centers designed to support high-performance computing (HPC), artificial intelligence, and blockchain applications. Their main business revolves around providing infrastructure solutions that support computationally intensive workloads, such as AI training, deep learning, and machine learning models.

The company leverages advanced cooling techniques and green energy to lower operational costs, making it highly appealing to industries needing scalable computing power, such as:

• Artificial Intelligence (AI)
• Machine Learning (ML)
• Data Analytics
• Blockchain
• Metaverse-related computing
• Cloud Services

Partnerships and Customers

While specific partnerships may not always be publicly disclosed, Applied Digital has developed relationships with key players in the AI and blockchain sectors. Some notable partnerships and customer relationships include:

• Marathon Digital Holdings (MARA): Marathon, one of the largest bitcoin mining operations, has partnered with Applied Digital for hosting services. This strategic partnership aligns with Applied Digital’s blockchain infrastructure and high-performance computing capabilities.

• Strategic Hosting Customers: The company provides data center hosting services to various enterprises, including those working in blockchain and AI.

• NVIDIA: Applied Digital uses advanced GPU technology, like NVIDIA chips, in its data centers to facilitate AI and machine learning workloads.

Applied Digital has not officially announced partnerships with other well-known technology giants like Google, Microsoft, or Amazon Web Services (AWS), but they are positioning themselves as infrastructure partners for AI and HPC companies.

Financials

As of the most recent financial reports (2023):

• Market Cap: Approximately $550 million (as of Q4 2023).
• Revenue: For the fiscal year 2023, Applied Digital reported revenue growth largely driven by hosting services and AI infrastructure needs. The company is expected to achieve revenue of $45-50 million by the end of FY 2023, marking a significant year-over-year increase.
• EBITDA: The company expects positive EBITDA for 2024 as operations scale with new data centers.
• Balance Sheet: The company has a strong balance sheet with manageable debt and is focusing on expanding its facilities to meet growing AI demand.

Key Financial Metrics (as of Q3 2023):

• Revenue Growth: 150% YoY growth
• Gross Margin: Improving as new facilities come online
• Cash Reserves: Strong liquidity position, allowing for expansion and operational improvements
• CapEx: Significant capital expenditures due to the ongoing construction of new data centers

Growth Prospects

1. High-Performance Computing and AI Demand:

• The global AI boom is driving significant demand for HPC infrastructure. Applied Digital is positioning itself to provide the computing power necessary for AI-driven companies, particularly for deep learning, neural networks, and autonomous technologies.
• With the rise of generative AI and large language models, the company is well-positioned to capture new customers and accelerate growth.

2. Data Center Expansion:

• Applied Digital has been rapidly expanding its data center footprint, with ongoing projects across the U.S. that are strategically located to capitalize on cheap energy and optimal climate conditions for cooling. These next-gen data centers are designed to handle the needs of companies involved in AI, metaverse applications, and blockchain technology.
• The company is expanding its total hosting capacity by adding facilities capable of handling Exascale workloads, boosting their ability to attract high-tech clients in the AI and blockchain sectors.

3. Blockchain Infrastructure:

• In addition to AI, Applied Digital is a key player in the blockchain infrastructure market. Their data centers are optimized to support the growing demand for blockchain hosting services, which is anticipated to be a major revenue driver in the future.
• Strategic partnerships with blockchain and bitcoin mining companies, such as Marathon Digital, solidify their position in this sector.

4. Energy Efficiency Focus:

• The company’s ability to leverage green energy and innovative cooling technologies enables them to reduce costs, positioning them competitively in the industry. This focus on sustainability is a critical component of their long-term growth prospects as customers look to decrease their carbon footprint.

5. Strategic Acquisitions:

• Applied Digital is open to future acquisitions of complementary companies in the AI and cloud computing sectors. This strategy could enable them to rapidly scale their operations and add new services.

Operations

Applied Digital's core operational focus is on building, owning, and operating data centers optimized for high-performance workloads. Their data centers are equipped to handle:

• AI model training and inference workloads
• Blockchain mining
• Cloud services
• Real-time data processing

Key Operations Highlights:

• Location Advantage: Facilities are located in regions with abundant low-cost energy, such as Texas and North Dakota.
• Scalability: Their data center design allows for easy scalability as demand for HPC and AI infrastructure grows.
• Energy Efficiency: Applied Digital is committed to using green energy and advanced cooling technologies to maximize efficiency, minimizing operational costs and environmental impact.

Future Facility Expansions:

• New data centers planned to come online in 2024, further expanding their AI and blockchain hosting capabilities.

Risks

• Energy Costs: Rising energy prices could impact margins, though their focus on securing low-cost energy in key regions mitigates this risk.
• Regulatory Environment: The company operates in a highly regulated environment, particularly with respect to cryptocurrency mining. Shifts in regulatory policy could affect growth in that sector.
• Competition: Applied Digital faces competition from well-established cloud computing providers like Amazon, Microsoft, and Google, who offer similar services for AI and HPC workloads.

Conclusion

Applied Digital is positioning itself as a major player in the AI infrastructure and blockchain industries, with a focus on providing the high-performance computing capabilities needed for the next generation of AI and machine learning technologies. With solid growth prospects, expanding operations, and increasing demand for their services, the company is well-positioned for long-term growth, though investors should be mindful of the risks tied to energy costs and competition.

For investors looking for exposure to the infrastructure side of AI and blockchain, Applied Digital represents a compelling opportunity.

Editor note: 

Question:  Might Elon Musk utilize this company's technology going forward?

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there are no public records or announcements indicating that Elon Musk's companies—such as xAI, Neuralink, or others—are customers or partners of Applied Digital Corp (APLD). However, considering the nature of Applied Digital's services, proximity of it's headquarters and the computational needs of Musk's ventures, it's possible that they might become customers in the future.

Potential Alignment of Services and Needs

xAI

• High-Performance Computing Needs: xAI focuses on developing advanced artificial intelligence technologies. This requires substantial computational power for training complex AI models.
• Applied Digital's Offerings: With expertise in high-performance computing (HPC) infrastructure optimized for AI and machine learning workloads, Applied Digital could meet xAI's computational requirements.

Neuralink

• Data-Intensive Research: Neuralink is developing implantable brain–machine interfaces, involving significant data collection and analysis.
• HPC Support: Applied Digital's scalable and energy-efficient HPC solutions could support Neuralink's need for processing large datasets and running sophisticated algorithms.

Considerations

• Industry Demand: The increasing demand for HPC services in AI, biotechnology, and neuroscience sectors makes a collaboration plausible.
• Strategic Fit: Applied Digital aims to expand its client base in cutting-edge technology fields, which aligns with the domains of xAI and Neuralink.
• Sustainability Focus: Musk's companies often emphasize sustainability, and Applied Digital's use of renewable energy could be an attractive factor.

Conclusion

While there is no confirmed relationship as of October 2023, the synergy between Applied Digital's services and the computational needs of Elon Musk's companies suggests a potential for future collaboration. Both parties operate at the forefront of technology and could benefit from a partnership.

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Note: For the most up-to-date information, please refer to recent company announcements or industry news sources.

Why we bought both AMD and Micron Technologies in October and the impact of the Chips Act!

We bought LAM Research Corp (LRCX) today under $70 PS - Here's why!

TNR Gold Corp.will spinoff International Lithium Corp. on May 19th

TNR Gold Corp.

TSX VENTURE : TNR

May 12, 2011 08:30 ET

TNR Gold Corp.: International Lithium Corp. Spin-Out Record Date Set

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2011) -TNR Gold Corp. ("TNR") (TSX VENTURE:TNR) and wholly-owned International Lithium Corp. ("ILC") (jointly the "Company") are pleased to announce the TSX Venture Exchange has approved the Company's Plan of Arrangement involving the spin-out of TNR's lithium and rare metals property interests into a separate public company, ILC. The Plan of Arrangement will close and be given effect on May 19, 2011 (the "Record Date") [Note 1].
Key Highlights:

• TSX Venture Exchange approves the Company's Plan of Arrangement, ILC spin-out;
• Sets Record Date / Effective Date for May 19, 2011;
• May 16, 2011 is the last Trading Day whereby eligible TNR Shareholders at the close of market will receive the ILC Unit distribution in accordance with the terms of the Plan of Arrangement [Note 1];
• ILC financing will close concurrently with Plan of Arrangement; and
• Strategic Relationship with Jiangxi Ganfeng Lithium Co. Ltd. solidifies as Plan of Arrangement approaches completion.

As part of the process, a separate press release will be issued on or following the Effective Date providing further details for the listing of ILC's common shares and share purchase warrants once listing conditions have been satisfied.
Plan of Arrangement
The Plan of Arrangement, which is fully described in the Company's Information Circular, dated May 10, 2010, effectively involves a restructuring of the Company's business and assets in order to separate its rare metals mineral property interests from its other precious and base metals assets.
Pursuant to the Arrangement:

• TNR will transfer its lithium and rare metals mineral properties, excluding the Mariana lithium brine property, to ILC for 10,000,000 ILC common shares and 10,000,000 ILC share purchase warrants, each whole ILC share purchase warrant exercisable to acquire one additional share of ILC at $0.375 per share for two years ("ILC Warrants"). 
•  
• Concurrent with the closing of the Plan of Arrangement, ILC will exercise the Mariana Option Agreement whereby, ILC will acquire a 100% interest in and to the Mariana Lithium Brine property in exchange for the reimbursement of TNR's costs in acquiring, maintaining and exploring the Mariana Property, of which $1,000,000 shall be payable through the issuance of 7,000,000 ILC common shares and 7,000,000 ILC Warrants, and the balance of which shall be payable in cash. 
•  
• Every TNR shareholder will exchange its common shares in TNR for one (1) new common share of TNR and one-quarter of one (0.25) common share of ILC and one-quarter of one (0.25) ILC Warrant. 
•  
• TNR warrant holders will receive on exercise of each warrant one new common share of TNR and one-quarter of one (0.25) common share of ILC. The exercise price paid will be split between TNR and ILC on the same ratio that the fair market value of the Spin-out properties has to the fair market value of all assets of TNR.

Note 1: The Record Date allows for a three day standard settlement of accounts from a May 16, 2011 Trade Date.

Therefore May 16, 2011 will be the last day to acquire TNR shares, through normal stock market acquisition procedures, which are eligible pursuant to the Plan of Arrangement for conversion into one (1) new common share of TNR and one-quarter of one (0.25) common share of ILC and one-quarter of one (0.25) ILC Warrant.  

For the avoidance of doubt, if an investor was to purchase shares of TNR on May 17, 2011 through the stock market, that investor will not receive ILC common shares and ILC Warrants through the Plan of Arrangement. Such investor will receive only new common shares of TNR.

ILC Financing
In order to complete the Plan of Arrangement, ILC intended to raise a minimum of $2.5 million to provide ILC with sufficient operating and administration funds to satisfy Exchange requirements for listing (the "Financing") however due to the level of demand the Financing is currently oversubscribed with the Company receiving $3 million in commitments.

The Financing consists of units in ILC offered at a price of $0.25 per unit. Each unit consists of one common share and one ILC Warrant. Each ILC Warrant entitles the holder to purchase one additional common share of ILC at a price of $0.375 for a period of two years from the date of closing ("ILC Units"). Certain fees may be payable on a portion of the placement, in compliance with Exchange requirements. The common shares and ILC Warrants comprising the ILC Units sold under the Financing will be restricted from trading for 4 months in accordance with applicable securities laws.

Jiangxi Ganfeng Lithium Co. Ltd. ("Ganfeng Lithium"), a leading China based multi-product lithium manufacturer has committed through a Strategic Relationship Agreement to an initial strategic investment consisting of a 9.9% equity stake in ILC. Ganfeng Lithium brings significant current and future project development assistance capability. For further details regarding Ganfeng Lithium refer to the Company's press release dated April 18, 2011.

TNR and Non-Executive Chairman Kirill Klip plan to participate in the Financing.

ABOUT TNR GOLD CORP. / INTERNATIONAL LITHIUM CORP.
TNR is a diversified international mineral exploration company focusing on the advancement of existing properties and identifying and acquiring new prospective projects. TNR has a portfolio of 18 active projects, of which 9 rare metals projects, including Mariana, will be held or optioned to TNR's wholly owned subsidiary ILC upon completion of the Plan of Arrangement.

The objective of the Plan of Arrangement is to spin-out TNR's rare metals property interests into a separate public company, ILC. The Plan of Arrangement has been approved by TNR's shareholders, the courts of British Columbia and the TSX Venture Exchange. For further details of the spin-out, please visit International Lithium's website and TNR's information circular dated May 10, 2010 which is available on the SEDAR website at www.sedar.com.

The recent acquisition of lithium, other rare metals and rare-earth elements projects in Argentina, Canada, USA and Ireland confirms the TNR and ILC's commitments to generating projects, diversifying its markets, and building shareholder value.

On behalf of the board,
Mike Sieb
President – International Lithium Corp.
COO – TNR Gold Corp.

Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
CUSIP: #87260X 109
SEC 12g3-2(b): Exemption #82-4434

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

TNR Gold prepares spinnoff of International Lithium Corp

TNR Gold Corp. States No Adverse Material Change/Proceeding as Proposed With International Lithium Spin-Off

September 28, 2010 - 07:43:24 PM

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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2010) - TNR Gold Corp. ("TNR") (TSX VENTURE:TNR) and wholly-owned International Lithium Corp. ("ILC") (jointly the "Company") is stating that the Company knows of no adverse material change that would explain the recent market activity and is proceeding with the plan of arrangement to spin-off of the Company's rare metal projects into International Lithium Corp.

In order to complete the plan of arrangement, the Company is intending to raise a minimum of $2.5 million to provide International Lithium with sufficient operating and administration funds to satisfy Exchange requirements for listing. The proposed financing will entail the offering of a minimum of 10 million units in ILC priced at $0.25 per Unit. Each Unit consists of one common share and one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of ILC at a price of $0.375 for a period of two years from the date of closing. Certain fees may be payable for a portion of the placement.

Company executives are focused on the completion of the private placement in an expeditious manner including traveling abroad to China and Europe to transact with potential investors and end product users that the Company has developed strong relationships with over the course of the last year.

Non-Executive Chairman and major shareholder Kirill Klip plans to participate in this financing along with other insiders.

Upon closing of the financing the Company will file the required final paperwork with the applicable regulatory bodies in order to complete the listing process of International Lithium Corp.

ABOUT TNR GOLD CORP. / INTERNATIONAL LITHIUM CORP

The Company is a diversified international metals exploration company focusing on the continued advancement of existing properties and identifying and acquiring new prospective projects. The Company has a portfolio of 18 active projects, of which 9 rare metals projects, including Mariana, will be held or optioned to the Company's wholly owned subsidiary International Lithium Corp upon completion of a proposed plan of arrangement.

The objective of the proposed plan of arrangement is to spin out the Company's rare metals property interests into a separate public company, International Lithium Corp. This proposed plan of arrangement has been approved by the Company's shareholders and the courts of British Columbia. The Company will now proceed with the spin out and will provide updates on the progress of the spinout in further news releases. For further details of the spinout, please refer to Stockwatch news dated May 26, 2010, or visit International Lithium's website.

The recent acquisition of lithium, other rare metals and rare-earth elements projects in Argentina, Canada, USA and Ireland confirms the combined companies' commitments to generating projects, diversifying its markets, and building shareholder value.

On behalf of the board,

Gary Schellenberg, President

Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.


FOR FURTHER INFORMATION PLEASE CONTACT:

TNR Gold Corp.
Gary Schellenberg
President
(604) 687-7551 or 1-800-667-4470
(604) 687-4670(FAX)
info@tnrgoldcorp.com
www.tnrgoldcorp.com



International Lithium Corp.
info@internationallithium.com
www.internationallithium.com

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Worlds largest, pure lithium producer, going public!

Talison Lithium Ltd, the largest, pure lithium company in the world, will go public on Thursday, Sept 23rd, on the Toronto Stock Exchange!

Right: Talison currently operates two lithium plants in Greenbushes Australia which have been operating for 25 years and currently supply 300 companies with lithium and lithium carbonate. Talison, up until now, a privately owned company, supplies approx 66% of Chinas imports of lithium.
 

A very light metallic element, lithium is mainly used as lithium compounds that act as fluxes in the ceramics and glass industries, and in lubricants. The metal is an important alloying agent in in the manufacture of primary aluminium. Lithium is increasingly being used in rechargeable batteries used in all aspects of the mobile web, from laptops to cell smart phones. Now lithium is the primary resource used in batteries for the hybrid and electric vehicle markets.

Image by gmeurope via Flickr

Lithium is mined from spodomen (hard rock) , clay deposits and more promisingly, from salars or brine lakes. Mining from Salars, (salt lakes) is much less expensive and less labour intensive. The Puna plateau in South America which spans Chile, Argentina and Bolivia holds much of the worlds salars. Junior miners have flocked to the region over the past two years to stake claims to what is, without argument, the worlds richest lithium deposits.
In July, Talison Lithium announced a merger with publicly traded, junior miner, Salares Lithium which owns the Salares 7 project in the Atacama Desert on the Puna Plateau of Chile which is, we believe, one of the largest, pure lithium deposits in the world, encompassing over 116 hectares in 7 Salars or salt lakes, of which Salares owned 100% of five of those salars.
In doing so, Talison kills two very big birds with one stone. Firstly, they now own one of the largest pure brine properties on the market today. As Talison has, up until now, been a spodomen or hard rock miner, the jump into brine production will enhance significantly, their lithium footprint in todays market, especially in the cheaper to produce (and more lucrative) brine deposits.
Also, as a result of the merger, Talison will become a publicly traded company, TLH. Its strike price should be between $3.50 and $4  per Talison share, which will return a premium to current Salares Lithium shareholders of 98.6% as the merger of shares is 2.81 Salares shares for one Talison share.

Image via Wikipedia

This year, the electric vehicles market is ramping up from California to Tokyo (see the Tesla roadster and other EVs parked at a charging station - right) Every major auto company on the planet has an EV in some stage of production at this writing.
With the advent of the Global X Lithium EŦF and lithium indexes popping up around the market, I believe that the strike price mentioned is very low as these ETFs and indexes will have to include Talison at or near the top of their lists (you cannot ignore a world leader in any market).


On Sept 17th 2010, Salares shareholders approved the merger with Talison by a 99.9% vote.
The hearing for the final court order to approve the Arrangement is scheduled to take place on September 21, 2010, with the completion of the Arrangement expected to occur on or about September 22, 2010. The TSX has conditionally approved the listing of the Talison ordinary shares under the symbol "TLH", and trading is expected to commence on the TSX at the market open on September 23, 2010.


As Talison goes public I am making it my conviction stock pick. Look for Talison Lithium Ltd to double the above price by Christmas (if not the first day of trading) and double again by Spring 2011.


HP 


Associated articles:
Talison and Salares Lithium merge 
U.S. Government  assists in Lithium Battery research
The Gold in TNR Gold Ltd is actually Lithium! 
As electric metal market heats up, juniors take the lead! 

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