Morning Star assigns a fair value of $CAD 2.39
--
American Manganese specializes in recycling lithium ion batteries. I expect in the next 2 years a share price of $5 (currently ~<security:0.63)
-:>> very favorable valuation in peer group comparison (AMY would have with a share price of $7.5 a similar market capitalization as LiCycle)
- strong growing market
- In contrast to the competition they patent their processes
- Probably the best recycling process with the highest degree of purity in the industry so far (>99%) Peers only come to ~90%.
In addition, there are a lot of foreseeable catalysts
- Completion of Demo Plant in early February
- Set-up and expansion of Commercial Plant
- Demo Plant delivers positive and profitable results
- More funding from Canadian and U.S. government (infrastructure plan includes 6 billion for Battery Recylcing)
- Allocation of Wenden Project (+ in discussion about new projects according to latest podcast)
- JV/licensing deal with first gigafactories (my guess is mainly Panasonic/Tesla)
- first analyst ratings
- Possible regulation which can become an advantage for AMY (recycling without toxic emissions)
Risks
- high volatility
- small cap
- pre revenue
- possible dilutions to finance commercialization
- in the USA only OTC trading
- No deals with Tier 1's
To me it is simply by far the most transparent and promising company in the green battery recycling space.
Here are a few more sources to read into the industry and the company:
https://www.mdpi.com/2313-0105/5/4/68
https://americanmanganeseinc.com/wp-content/uploads/2021/12/AMY_Presentation-Dec_2021.pdf
https://www.shovel-stocks.com/post/interview-with-american-manganese-inc-amy