Topic: How To Invest

Hi Pat: Please advise your opinion on Talison Lithium Ltd. and lithium in general. Thanks.

Article Excerpt

Lithium, which is used in electric car batteries, has attracted investor interest lately. Nevertheless, it is still not clear how quickly demand for electric cars will rise, or if lithium batteries will even be the preferred method of powering them. Lithium can be open pit mined, but in the 1980s, companies began producing it from brine solutions drawn from lakes, such as the Chabyer salt lake in Tibet and the Salar de Atacama salt lake in northern Chile. The lithium-from-brine producers’ lower costs put the open-pit lithium miners out of business. Now they have the capacity to produce enough lithium to meet demand for many years. Talison Lithium, $3.09, symbol TLH on Toronto (Shares outstanding: 107.1 million; Market cap: $330.9 million; www.talisonlithium.com), mines and processes lithium at its Greenbushes property in Western Australia. It also explores for lithium at the Salares 7 project in Chile, which contains seven salars, or brine lakes. In the three months ended December 31, 2011, Talison’s revenue fell…