Speculation that Elon Musk and his company, Tesla, are interested in getting into the lithium and nickel mining games has sent interest in junior mining stocks soaring.
That’s because many experts believe Musk may ultimately decide to buy existing miners rather than start his own operation from the ground up.
Here’s what Musk tweeted: “Price of lithium has gone to insane levels! Tesla might actually have to get into the mining & refining directly at scale, unless costs improve.”
That Was All the Market Needed to Hear
Investors began searching for quality junior mining stocks. In fact, Reuters reports that the stock price of Lithium Corp rose over 30% on April 13 “after unsubstantiated reports that it and its Nevada brine deposits had been sold to Tesla.”
The company later denied the rumor. It has largely been the smaller mining stocks that have benefited from the Tesla rumors. Larger companies like Albemarle haven’t seen their prices move in response to Musk’s tweets.
In an article on this subject, Reuters reported that the price of lithium has risen more than 80% so far this year and that nickel prices have “gyrated heavily amid trading turmoil in London.”
Twitter Purchase Fuels Rumors …
When Musk recently bought Twitter for $43 billion in cash that only served to increase the ongoing Tesla mining speculation. Experts said that if Musk wanted to invest $43 billion in lithium and nickel mining, it would probably serve him better to buy existing mining companies rather than start an operation.
So what lithium and nickel mining microcap stocks are standing out in today’s market and could one day be on Tesla’s radar?
A Few Select Microcap Mining Stocks
to Keep an Eye on:
Avalon Advanced Materials (OTCMKTS: AVLNF) – This company, which is focused on clean energy and has five projects underway, had a price of 0.11 (USD) and a market cap of 54.78M (CAD) on May 19.
Lithium Energi Exploration (OTCMKTS: LXENF) – This acquisition, exploration, and development mining company had a stock price of 0.22 (USD) and a market cap of 19.68M (CAD) on May 19.
Gungnir Resources Inc (OTCMKTS: ASWRF) – This company owns two nickel deposits and had a stock price of 0.077 (USD) and a market cap of 10.24M on May 19.
Horizonte Minerals PLC (OTCMKTS: HZMMF) – This company, which is focused on Brazil, has a major nickel project in the country. It had a stock price of 0.090 (USD) and a market cap of 258.40 (GBP) on May 19.
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