CGRA Remains Significantly Undervalued Despite Discovery of Lithium Bearing Rock - Seite 2

CGRA also has significantly lower labor costs than most other lithium mines, especially those in the Western world. Coupled with favorable local environmental factors in the African market, these aspects afford CGRA Mining Inc. a distinct competitive edge. Consequently, the company expects that its production costs for spodumene concentrate will be considerably below the average market price per tonne. Considering that market prices have remained low since late 2022, making it difficult for many mines to operate profitably, CGRA's ability to produce at lower costs stands out as a significant advantage. Many competitors, originally basing their calculations on a previously elevated price environment, are now burdened by higher production, labor, and operating costs, making it challenging for them to compete. This positions CGRA advantageously, with the potential to generate substantial and sustained profits, in a market characterized by the constant battle between supply and price, even if prices decline in the future.

“The consistently lower price environment than that observed in 2022 has already led to the pause of costlier, marginal supply sources and the cancellation of planned projects predicated on previously elevated prices. We perceive this as a significant opportunity, likely leading to a consolidation of the lithium market among profitable mines and, ultimately, fewer competitors. Despite this advantageous market shift and significant progress, including the discovery of valuable lithium-bearing rock, CGRA's stock remains grossly undervalued compared to other lithium stocks at a similar stage of exploration. Our analysis of six publicly traded lithium stocks indicates that CGRA’s current market valuation is undervalued by between 936% and 4,754%. Such undervaluation fails to reflect the extensive work undertaken or the potential of the lithium deposits we have identified. With full commitment from CGRA's management to continue building our resource table and to complete the Preliminary Economic Assessment in Q2 this year, we are dedicated to realizing the full potential of this project. We are confident that, in the coming weeks and months, our share price will more accurately reflect its true value,” commented Nicolas Link, Chairman of CGrowth Capital Inc. The detailed analysis, including the areas and companies compared, is now accessible for review on the CGRA Mining website.