American Lithium Corp

This question was timely.

Today's crash is a perfect example of why we tend to avoid these types of stocks. Li.V lost 23.96% of its value today. These stocks are not for those with a low risk tolerance, and is one of the reasons we tend not to cover these on our platform.

Hi there,

American Lithium (LI.V) is a microcap lithium exploration and development company. LI's flagship property is the TLC project in Nevada. Recently, the company made news because it bought back a percentage of future royalties on the site in exchange for cash and shares.

The recent surge in share price has nothing to do with fundamentals, or big discovery. In fact, the company had to issue a release saying there was no material change in light of the big jump in price.

Likely, price action is being driven by strong EV demand and stocks like Tesla are driving up all companies in the industry.

We've been here before - LI soared to as much as 7.50 per share back in 2016 before crashing. It is possible the same thing happens this time around. Bottom line, this is a junior exploration company which is a long way from becoming a producer. It may eventually get there or be taken out before it does.

This is a speculative play and not one that we would actively cover here.

Mat