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We Just Invested in This ASX Stock - Here is Our Initiation Report


Published 03-MAR-2021 10:00 A.M.


2 minute read

At Wise-Owl we’ve had success investing in ASX companies focused on electric vehicle (EV) battery metals supply - focusing on Europe where the move to EVs is the fastest in the world.

Europe also has almost zero local critical battery metal supply and the EU government is desperate to change this using government spending and national policy - which is why we like to invest in companies that are developing large scale battery metal projects inside Europe.

Our last two investments in this thematic have performed very well:

  • Euro Manganese at 20.5c currently up 200% (Manganese in Czech Republic).
  • Vulcan Energy Resources at 36c currently up 1,642% (Lithium in Germany).

Today we are announcing our new investment and initiation research report on our third ASX company in this thematic.

At Wise Owl we are investors like you, we research ASX companies and take a long term position. We have a 4 to 7 year investment horizon. We only write analysis about companies that we are invested in. We share our research for free.

Our latest investment is in European Metals holdings (ASX:EMH) , who are developing a Lithium project in the Czech Republic.

Follow the link below to see our full analysis - but first here is a short summary on why we invested in EMH:

  • EMH is developing the largest hard rock lithium resource in the European Union (lithium is a critical material in electric vehicle batteries).
  • The European Union is aiming for 80% local lithium production by 2025, and beyond that, complete self-sufficiency.
  • EMH’s Project located locally in the heart of Europe in Czech Republic - very close proximity to Major Automakers who are all switching to Electric vehicle production.
  • EMH’s Project and is arguably the most advanced near term lithium producer in the EU.
  • EMH is sharing the project with a majority government owned local partner, CEZ, the seventh largest European Union power utility by customers and the tenth biggest by market cap.
  • EMH has an Inferred Mineral Resource of 323.5 million tonnes at 0.39% Li2O and 0.04% Sn.
  • EMH intends to supply a minimum of 25,267 tpa of lithium hydroxide or 22,500 tpa of lithium carbonate over the long term.
  • EMH is reporting its Environmental, Social and Governance credentials.
  • Research house RK equities has put a price target on EMH of $2.91.
  • EMH has announced they are expecting offtake agreements in calendar Q2\Q3 - offtake agreements have shown to be share price catalysts for other lithium companies.

Click here for full analysis report on our new investment in EMH.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

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The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.