CGRA Remains Significantly Undervalued Despite Discovery of Lithium
Bearing Rock
NEW YORK, NY -- March 5, 2024 --
InvestorsHub NewsWire -- CGrowth
Capital Inc. (OTC:
CGRA) is a public holding company for alternative and
undervalued assets. The company is sector and industry agnostic and
currently consists of two divisions including Mining and Sports
Technology. The company is focused on investing in growth-oriented
opportunities where the company's capital,
expertise, and capabilities can help create significant added value
for shareholders.
Following the
confirmation of the discovery of lithium-bearing rock, CGRA Mining
Inc. is advancing with follow-up sampling and drilling at the sites
showing the most promising concentrations of lithium. The targeted
concession areas are characterized by pegmatites, geological
formations renowned for their capacity to host substantial deposits
of spodumene. These efforts are part of the company's ongoing work
to complete its Preliminary Economic Assessment, anticipated for
completion in Q2 of 2024.
Despite
short-term challenges facing the lithium market, the significance
of this recent discovery by CGRA Mining Inc. is further underscored
by the anticipated long-term use of lithium and its critical role
in decarbonization efforts. As global leaders intensify their
efforts to reduce emissions, the prospects for lithium remain
robust, given its key position in powering electric vehicles and
supporting renewable battery storage from sources like solar and
wind. Although the market has experienced severe price fluctuations
in recent years, the commitment of over 130 countries to achieving
global net-zero emissions by 2050 is expected to drive sustained
demand for lithium in the long term.
CGRA
holds a significant market advantage compared to many lithium
stocks due to its anticipated ability to extract and process
lithium in a notably more cost-efficient manner
in comparison to
most other lithium companies. This
competitive edge primarily stems from CGRA's discovery of
concession areas characterized by pegmatites, well-known for their
capacity to host substantial deposits of spodumene. Spodumene is a
highly concentrated source of lithium, sought after for its
extraction efficiency, and notable for its scarcity. It allows for
straightforward, predictable, and cost-effective mining and
processing. This combination of high efficiency and relative rarity
positions spodumene as the preferred choice for lithium extraction,
further solidifying CGRA's market advantage.
CGRA
also has significantly lower labor costs than most other lithium
mines, especially those in the Western world. Coupled with
favorable local environmental factors in the African market, these
aspects afford CGRA Mining Inc. a distinct competitive edge.
Consequently, the company expects that its production costs for
spodumene concentrate will be considerably below the average market
price per tonne.
Considering
that market prices have remained low since late 2022, making it
difficult for many mines to operate profitably, CGRA's ability to
produce at lower costs stands out as a significant
advantage.
Many
competitors, originally basing their calculations on a previously
elevated price environment, are now burdened by higher production,
labor, and operating costs, making it challenging for them to
compete.
This
positions CGRA advantageously, with the potential to generate
substantial and sustained profits, in a market characterized by the
constant battle between supply and price, even if prices decline in
the future.
''The
consistently lower price environment than that observed in 2022 has
already led to the pause of costlier, marginal supply sources and
the cancellation of planned projects predicated on previously
elevated prices. We perceive this as a significant opportunity,
likely leading to a consolidation of the lithium market among
profitable mines and, ultimately, fewer competitors. Despite this
advantageous market shift and significant progress, including the
discovery of valuable lithium-bearing rock, CGRA's stock remains
grossly undervalued compared to other lithium stocks at a similar
stage of exploration. Our analysis of six publicly traded lithium
stocks indicates that CGRA's current market valuation is
undervalued by between 936% and 4,754%. Such undervaluation fails
to reflect the extensive work undertaken or the potential of the
lithium deposits we have identified. With full commitment from
CGRA's management to continue building our resource table and to
complete the Preliminary Economic Assessment in Q2 this year, we
are dedicated to realizing the full potential of this project. We
are confident that, in the coming weeks and months, our share price
will more accurately reflect its true
value'', commented Nicolas Link, Chairman of
CGrowth Capital Inc. The detailed
analysis, including the areas and companies compared, is now
accessible for review on the CGRA Mining website.
For regular
CGrowth Capital (CGRA) updates, you are invited to view the
company's website
and/or to follow the company's Twitter
account:
Website:
https://cgrowthcapital.com
Twitter:
@CGRAOTC
Contact:
info@cgrowthcapital.com
Source :
CGRA
Forward-Looking
Statement
Certain
information set forth in this press release contains
"forward-looking information", including "future-oriented financial
information" and "financial outlook", under applicable securities
laws (collectively referred to herein as forward-looking
statements). Except for statements of historical fact, the
information contained herein constitutes forward-looking statements
and includes, but is not limited to, the (i) projected financial
performance of the Company; (ii) completion of, and the use of
proceeds from, the sale of the shares being offered hereunder;
(iii) the expected development of the Company's business, projects,
and joint ventures; (iv) execution of the Company's vision and
growth strategy, including with respect to future M&A activity
and global growth; (v) sources and availability of third-party
financing for the Company's projects; (vi) completion of the
Company's projects that are currently underway, in development or
otherwise under consideration; (vi) renewal of the Company's
current customer, supplier and other material agreements; and (vii)
future liquidity, working capital, and capital requirements.
Forward-looking statements are provided to allow potential
investors the opportunity to understand management's beliefs and
opinions in respect of the future so that they may use such beliefs
and opinions as one factor in evaluating an investment. These
statements are not guarantees of future performance and undue
reliance should not be placed on them. Such forward-looking
statements necessarily involve known and unknown risks and
uncertainties, which may cause actual performance and financial
results in future periods to differ materially from any projections
of future performance or result expressed or implied by such
forward-looking statements. Although forward-looking statements
contained in this presentation are based upon what management of
the Company believes are reasonable assumptions, there can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. The Company
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change
except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking
statements. The Securities and Exchange Commission ("SEC") has
provided guidance to issuers regarding the use of social media to
disclose material non-public information. In this regard, investors
and others should note that we announce material financial
information via official Press Releases, in addition to SEC
filings, press releases, Questions & Answers sessions, public
conference calls and webcasts also may take time from time to time.
We use these channels as well as social media to communicate with
the public about our company, our services, and other issues. It is
possible that the information we post on social media could be
deemed to be material information. Therefore, in light of the SEC's
guidance, we encourage investors, the media, and others interested
in our company to review the information we post on the following
social & media channels: Twitter: @CGRAOTC