In October 2017 alone, NRG Metals, Inc. (TSXV:$NGZ) stock price has remained on an unprecedented steady rise, tripling in value. This is undoubtedly attributed to its financial restructuring and capital base expansion between 2015 and 2016.
Specifically, recent news of its strategic alliance with high-tech enterprise, Chemphys Chemical Industry Co, an initial contract for drilling with AGV Falcon Drilling SRL, and its ownership of a large amount property in the Argentine lithium triangle have raised market expectations for the company’s future performance.
Let’s take a closer look at the profile of NRG Metals. Founded in 1995, in Vancouver, Canada, the company engages in the identification, acquisition, and exploration for lithium brine mineral in Argentina, Chile, and Bolivia. In July of this year, NRG filed an Environmental Impact Study and applied for permits to drill for the Hombre Muerto North Project. Currently, the company sees around 68 million shares issued and outstanding.
More recently, on September 18, NRG Metals announced its plans to award a contract for the initial drilling at its Salar Escondido lithium project in Catamarca province, Argentina to AGV Falcon Drilling SRL of Salta, Argentina. The project is comprised of mining concessions totaling approximately 29,180 hectares.
On the financial front, the firm’s focus on expansion has hindered revenue generation in recent years. But, its lack of profitability has not affected its liquidity position as it currently sees cash and short-term investment worth over $1.58 million. At the end of December 2016, its current liquidity puts the firm in a position to fund its other projects and invest in viable diversification opportunities.
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