Nemaska Lithium CEO on the “very strong message” behind the Johnson Matthey deal
January 27, 2016 — In a special InvestorIntel interview, Publisher Tracy Weslosky speaks with Guy Bourassa, President, CEO and Director for Nemaska Lithium Inc. (TSXV:NMX | OTCQX:NMKEF) about the 166% increase in stock in 2015 and the Johnson Matthey MOU. Specifically, Guy discusses the competitive advantage of securing the Johnson Matthey MOU with “an end-user that is willing to put money upfront to make sure that it will create a new production supply…” and goes onto add: “that’s a very, very strong message on how tight the market is and how the outlook also looks.”
Tracy Weslosky: Guy, your stock was up 166% in 2015. Can you tell us what you can attribute this to?
Guy Bourassa: Well, we delivered what we said we were going to do. The market was quite flat for most of the year, but in expectation of us getting all the permits required to start building an operation of the Whabouchi Mine. So, if you look at the chart it exactly reflects the decisions that were rendered, federal government at the end of July stock started to rise on this. Early September, provincial government gave us the certificate of authorization, another spike. It maintained very good liquidity because we have strong believers in our stock, long-term shareholders, and they were all expecting a long due process to be approved.
Tracy Weslosky: Of course let’s not forget your MOU signing with Johnson Matthey. I think our audience really needs to appreciate as much as we do how substantial that agreement signing actually was.
Guy Bourassa: It is one of a kind and obviously it reflected very strongly on the stock. The MOU we signed with Johnson Matthey has never been seen in the lithium sector. It has never been seen of an end-user, actual credible large end-user of lithium compound that is willing to pay upfront $12 million dollars on goods and services coming from a plant that is not even built. It’s not some sort of a potential letter of intent. It’s a real hard money put upfront for goods and services.
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Tracy Weslosky: Of course you managed to sign a deal with real cash. Can you talk to us a little bit about the capital component of this deal please?
Guy Bourassa: Yes. It’s a $12 million dollar Canadian upfront payment for goods, mainly lithium compounds that will come out of the Phase 1 plant that we’re starting to build this quarter in Chibougamau. It’s very interesting because it also shows how tight the market is presently. So for an end-user that is willing to put money upfront to make sure that it will create a new production supply — that’s a very, very strong message on how tight the market is and how the outlook looks also.
Tracy Weslosky: Okay, interesting. Also, Christopher Ecclestone, one of our global analysts at InvestorIntel, said Nemaska Lithium Gets Best Girl at the Dance, I believe is his quote and one of the few that will make it — one of the few in a handful that will make it to production…to access the complete interview, click here
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