Appia Energy shares up 511% YTD as EV demand speculation rumbles with rare earths

In the last year Appia Energy Corp. (CSE: API | OTCQB: APAAF) share price has increased by 511%. From CAD$0.18 at market close on June 9, 2020, to CAD$1.10 today, the question that Jack Lifton poses in his column earlier this week Why lithium and rare earths are truly a bull market, and the EV transition is just bull is clearly confirmed, as Appia announced the appointment of Jack Lifton as a Strategic Adviser on Monday, the market responded favorably.

Source: TD Waterhouse Chart from June 9, 2021 taken at Market Close

So how did this happen?

April 22, 2021 – Appia reports 4.5 million warrants (from 2017) were exercised to bring in new equity of $1.36 million – adding to the company’s cash balance as reported at March 31, 2021 of ~$6.0 million and no debt. Closing share price C$0.61

April 29, 2021 – Appia announces a $4.0 million bought deal for a combined flow-through and common share equity ($0.70 per unit and $0.60 per unit respectively) that was subsequently upsized to $5.0 million. Note that the company has only ever done non-brokered financings and has never had a bought deal. Closing share price C$0.63

May 19, 2021 – Appia announces closing of financing including full overallotment option, raising $5.75 million of new equity. Closing share price C$0.72

May 31, 2021 – Research Capital Corporation initiates research coverage with a full research report on Appia. There was no target price, but the analyst has a Speculative Buy rating on the stock.

Appia’s share price has been as high as C$1.16 this week we await results from the 2021 drilling and exploration program at the northern Saskatchewan rare earths project at Alces Lake. Previous news releases indicated that 5,000+ meters of drilling will be done this year – that is more than the previous years’ exploration drilling combined.

For those new to the Appia story, between 2017 and 2020, the company has:

  • Discovered 74 rare earths and uranium-bearing surface zones and occurrences;
  • Completed a total of 64 short diamond drill holes (end of hole average 25 to 50 m depth) for a total of 2,276.2 meters;
  • Completed a total of 14 long diamond drill holes (end of hole >50 m depth) for a total of 2,615.5 meters; and
  • Has over 95% drill hole success rate intersecting rare earths-bearing pegmatite system

And finally, as I mentioned above – by the end of the year, the experts who tell me that this is indeed a world-class rare earths deposit, should be telling all of us what to expect from Alces Lake.

Jack? Back to you…

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2 responses

  1. Rare Earths Investor Avatar
    Rare Earths Investor

    For me, this is most immediately a play around the proposed SRC processor and from whom they choose to receive feedstock supply. Seems very likely that the US will be looking for RE processing either from within or ‘friendly’ borders and the SRC as a potential N. American prime mover (before Lynas and MP in the US??) will come into play.

    Both Appia (and Vital – I hold both) have had past dealings with the SRC (Dyodd) and are favorably located re., Saskatchewan. SRC processor supply has to come from somewhere and if we want to take the step and discount from outside CAD borders, then there are only a handful of projects in Canada that could be considered, including these two.

    Clearly, there are still a lot of highly speculative issues here, but if investors are going to start narrowing the field then public information and most specifically ‘actionable’ company events are all we can react to.


  2. Tracy Weslosky Avatar
    Tracy Weslosky

    THX for visiting GLTA, Note that VITAL Metals will be on Critical Materials Corner on June 18th with host Jack Lifton at 9AM. News release out later today from InvestorIntel in this event:

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