AMEL.OB - Sector: Basic Materials---Industry: Gold & Silver

[setravis]

Profile:  

Amerilithium Corp.
871 Coronado Center Drive
Suite 200
Henderson, NV 89052
United States - Map
Phone: 702-583-7790
Fax: 702-583-7791
Website: http://www.amerilithium.com

Details  
Index Membership: N/A
Sector: Basic Materials
Industry: Industrial Metals & Minerals
Full Time Employees: N/A


Business Summary  

AmeriLithium Corp., an exploration stage company, engages in the acquisition and exploration of mining properties. It owns 100% interests in the Kodiak Lode mining claim comprising an area of 20.66 acres, which consist of gold, silver, copper, and lead deposits located in the Sunset mining district of Nevada. The company was formerly known as Kodiak International, Inc. and changed its name to AmeriLithium Corp. in February 2010. AmeriLithium Corp. was founded in 2004 and is based in Henderson, Nevada.


Business Overview

BRIEF: For the nine months ended 30 September 2010, Amerilithium Corp reported no revenue. Net loss totaled $471K, up from $33K. Revenues reflect Company is still being in development stage of operations. Higher loss reflects the presence of marketing & advertising costs, increase in legal & professional fees, the presence of depreciation & amortization costs, higher other general & administrative cost and the presence of interest expenses. http://www.amerilithium.com

[setravis]

AMEL is exploring for lithium.  Last year it managed to build one of the largest portfolios of prospective properties in the industry, including three projects in Nevada right next to the only lithium producing plant in the USA. A few days ago, Amerilithium said it is starting the drilling program on its Paymaster Canyon project and as the initial results were incredible any additional updates could make AMEL share price explode.

The technical indicators show possible breakout:
•       Touch of the upper Bollinger band
•       MACD lines and Accum/Dist pointing up
•       Stable support levels, no hard resistances


The fundamentals are impressive for a junior mining company:
•       A projects portfolio consisting of nearly 724,000 acres
•       Over $7.43 million in assets, funding agreement for $10 million in cash on place
•       No long-term debt

[setravis]

Lithium is used in the biotechnology, aviation and various manufacturing industries, but its true future potential lies in the production of lithium batteries, where the demand may soon exceed the supply. Consumers, and potential AMEL customers, are the largest producers of all kinds of mobile electronic devices, electric cars and in the future even wind farms, and they all plan to invest billions in new lithium battery plants. In the USA there is only one company actively producing lithium from domestic reserves. Its market cap tops $1.7 Billion and its mine is adjacent to Amerilithuim Paymaster Project in Nevada.

    AMEL initially estimated lithium reserves only on this single project hold a market value of up to $144.9 million, meaning that a share price of over $1 sounds absolutely realistic. The stocks of other public companies in that industry trade at 20 times the actual sales. It means not only that investors are extremely optimistic, but also that as soon as Amerilithuim puts its projects into production its shareholders could be only seeing the value of their investments grow.


    Conclusion: AMEL current market cap seems to find fundamental support, suggesting that the immense future potential could mean immense value appreciation for the stock. Shorter term, AMEL share price could easily make a 30% jump up.

Happy Trading,

[setravis]

Ah yes, lithium is in the spot light again - that wonderful, highly prized and sought after rare earth metal that powers the latest generation of rechargeable batteries found in electronics and hybrid cars - and the shares of lithium miners, as well!

Let's first go to its chart.
trading within a tight range since the start of 2011 - but now bumping up against past resistance lines.

Accumulation is on the rise as the Slow Stochastic moves out of oversold levels.

AMEL's RSI is tame - but watch for big volume - in the past, AMEL scored a near-TRIPLE in only 4 days when volume soared.



AMEL's Ace in the Ground: $2.5 Billion in Lithium Deposits!

...AMEL controls 43,000 lithium-rich acres in Australia - and 670,000 lithium-rich acres in Canada and Nevada!
And, according to AMEL - its Canadian Americana claim is estimated to contain as much as 568,000 tons of lithium - which priced at approximately $4,500 per ton means that AMEL is sitting on a potential $2.5 BILLION lithium gold mine - just in Canada!

So let's do a little quick math here...
At 69 million AMEL shares outstanding, divided into its Canadian claim's $2.5 Billion horde...well now, that comes out to about $37.04 per share.
Yet, get this... AMEL shares are currently trading for around - $0.48 a share in this morning's trading session. Holy Saints of undervalued stocks - are we talking unbelievable leverage here or what!

We shall follow the stock...

[setravis]

A bull run on Monday and didn't even look back until it flew all the way from a fleeting low of $0.275 to $0.53 on Thursday...a whopping 90% rally!

What was great about AMEL's four-day surge was all the short-term peaks and valleys along the way. Traders had plenty of chances to take profits and come back in on the dips.

But even Friday, AMEL has held up very nicely...still up 62%, And with its chart in a very different position than it was last week, the fun may just be entering a new phase.