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QMC QUANTUM MINERA (OTCMKTS:QMCQF) Is Flying on the Lithium Demand Wave

QMC QUANTUM MINERA (OTCMKTS:QMCQF) Is Flying on the Lithium Demand Wave
Written by
Jim Bloom
Published on
November 15, 2017
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The effect of the huge increase in lithium demand can be told from change in value of QMC QUANTUM MINERA (OTCMKTS:QMCQF) in the past few months.Between September and October, the stock steadily rose from $0.078 to $0.32 a share.The increase however, didn’t stop there, in the last few days, the stock has nearly doubled from $0.34 to $0.62 and it is hard to estimate when this rise will stop especially when the unusually high demand is considered.Take a look at the price movement: QMCQF Daily ChartIn recent reports from market sources, it has been noted that China is positioned to become a major buyer of lithium. Although the country holds its own significant reserves of the word's lithium resources estimated at about 7 million tons, it is already obvious that they will need much more supply to handle all of their future needs.This new move by Chinese automakers is understandable, as all major automakers, including several major Chinese manufacturers, have plans to increase their electric vehicle (EV) production rates drastically. This, combined with the increased use of lithium in power grid storage, is already posing a serious projected lithium supply deficit that could hit as early as 2020.Companies with lithium production are expanding their production, and a number of small players are working fanatically to find any new lithium sources.QMCQF has already commenced the development of a large historical resource in Manitoba -a region with very favorable mining logistics.Brief IntroductionFor those who may not be familiar with QMCQF. Here is a brief profile of the company.QMC Quantum Minerals Corp., was incorporated in 2003 and is based in Vancouver, Canada. It is a junior mineral exploration company which engages in the acquisition, exploration, and development of mineral properties in Canada. The company primarily explores for lithium, silver, gold, nickel, copper, zinc, and volcanogenic massive sulphide (VMS) deposits. It holds interests in mineral exploration properties located in Manitoba, Canada, including the Namew Lake VMS project comprising the Rocky Lake property, Irgon Lithium Mine project two VMS, the Rocky-Namew property, and the Namew Lake property, as well as the Carrot River property; and the Cat Lake Lithium property. Currently, all of the company’s properties are located in Manitoba.Recent DevelopmentsThe company reported last week that its crews have begun to re-locate and re-sample at the anomalous sites (locations with less than 2% Lithium) identified within the company’s Irgon Lithium Mine Property, located in the Winnipeg River Pegmatite Field in S.E. Manitoba. The anomalous sample results were reported in the Fogwill Assessment Report which was based on its 2011 assessment work and was noted in the company’s news release of October 2017. These samples will be assayed to determine the concentration of Lithium Oxide as they will be obtained from lithium-bearing pegmatitic dikes, other than the Irgon dike, that are known to occur on the property. The size and continuity of these dikes will be evaluated and if results merit, these lithium-bearing dikes will be more fully explored during the 2018 exploration program.The Fogwill assessment report documented eight grab samples, from the 2011 assessment work program that returned with lithium values greater than 2,000 parts per million (ppm). The sampling also indicated dikes with elevated rubidium (greater than 2,000 ppm), beryllium (greater than 1,000 ppm) and tantalum (to 280 ppm) which suggests that other dikes on the property will require additional evaluation.In October, the firm had received the required work permit from the Government of Manitoba for its Irgon Lithium Mine property. The company has now mobilized the work crew and equipment to the work site. The initial work program is designed to strip the overburden off the dike thereby exposing it completely along strike. Subsequently, the company will initiate a program of channel sampling across the dike, at intervals along the entire strike length of the dike to extend the known mineralized zone and confirm previous grab sampling, trenching and drilling results.Financial InformationAccording to its statement of financial position, the firm is not in a very healthy position in terms of liquidity. This could hamper QMC Quantum Minerals Corp from investing in other opportunities that may be available for the company. Also, the firm has not been able to reduce its debt capital in the last few years, which could lead to higher interests, thereby reducing the value of any potential profits.ConclusionQMC Quantum Minerals Corp is clearly in a strong position as shown by its performance on the charts. However, the absence of revenue and the rising debt may delay its potential. The company is certainly on our radar and we will be monitoring its progress.We will be updating our subscribers as soon as we know more. For the latest updates on QMCQF, sign up below!Disclosure: We have no position in QMCQF and have not been compensated for this article.

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