Grounded Lithium - undervalued, strong business modelGrounded Lithium and Denison Mines are exploring and developing direct lithium extraction (DLE) from brines in Western Canada. Exploration is being directly funded via Denison Mines, who has the option to provide funding in exchange for deposit ownership. Their current deposit has an after tax NPV with 8% discount rate of $1B. Grounded Lithium currently owns 70% of the deposit and will, ultimately, own 25% of the deposit ($250M NPV). Assuming Grounded Lithium is bought out by Denison Mines at a rate of 30% of the NPV, Grounded Lithium will be valued at $75M, a 30x increase from their valuation today. This does not include any added value from additional discoveries or other reasons.
This is a long play and I do not expect Denison to make an offer until their buy-in phases have completed in 2026-2027.
