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Market Commentary: Interview With Larry Reaugh, President & CEO of American Manganese Inc. (4/5)

Written by Peter Bell


Welcome to the fourth installment of our five-part series on American Manganese Inc.
(TSX.V: AMY; Pink Sheets: AMYZF; Frankfurt: 2AM). In this teaser, learn more about the growth industry of battery recycling, and the potential Larry sees therein. Tune in next week for the final installment of this series on American Manganese, as well as a sneak peak into an up-coming contest featuring them! Looking for the other parts of this series? Part One, Part Two, Part Three.

American Manganese Inc. is a diversified specialty and critical metal company focused on capitalizing on its patented intellectual property through low cost production or recovery of electrolytic manganese products throughout the world, and recycling of spent electric vehicle lithium ion rechargeable batteries.

Peter Bell: There is a quote of a Mr. Mark Grynberg in a Bloomberg article (https://www.bloomberg.com/news/articles/2017-12-01/the-cobalt-crunch-for-electric-cars-could-be-solved-in-suburbia) that says, “We expect recycling will take off in 10 to 12 years when the first wave of electrified vehicles will near end of life.” When I read that, I didn't quite believe it. I think this problem's here already and I’m sure you do too, Larry.

Larry Reaugh: Peter, that's the party line for the EV car manufacturers. They say that they’re going to have the critical materials in the batteries available for “second use.” I say, give me a break. They’re going to tie up thousands of dollars’ worth of cobalt with every powerwall battery – never mind the fact that you could build a whole new unit cheaper using lithium manganese. People often look at the price of the lithium carbonate, which is $10,000 a tonne, but the relevant number for those batteries is five times that because it’s converted to metal in the battery. There's real money in the lithium batteries, too.

Peter Bell: Sorry – is that because it's in a salt when it's used in the battery or what's going on there?

Larry Reaugh: No, it’s because the lithium carbonate is converted to metal. That's what works best in the lithium ion batteries. There are so many things about these batteries that people don't understand. I get a real kick out of guys saying there's no money in recycling. We've shown on charts for over a year now that there is real money in those batteries. If that was an ore body, then they would be clamoring to open it up and mine it.

Peter Bell: It's harder to get that data here, right? It’s one thing to a drill hole in the ground, but pinning down the details on the process flows and the value chain of the batteries is very different. I’d suspect it is harder to get the right data on the batteries.

Larry Reaugh: No, it’s quite easy. All you need is a good understanding of chemistry and everything involved in converting kilowatt hours into pounds of material. Then, it’s simple addition. Say the nickel manganese cobalt batteries has a value of $2,700 worth of cathode metals in it. If you've can source 1,000 of them, then that’s $2.7 million and that's your ore body. Guess what? It doesn't deplete!

Peter Bell: Amazing to think that recycling could be a growth industry in the 21st century, Larry. Thank you.

Click here to download their latest presentation.

To learn more about American Manganese, visit https://americanmanganeseinc.com/

Forward-Looking Information

This is not in any way investment advice nor any sort of stock recommendation. Please do your own due diligence and talk to a qualified investment advisor.

The contents of this article are for informational purposes only. Nothing in this article, in any way whatsoever, should be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy, hold or sell any security. Note the inherent risks when investing in microcap stocks. Prior to making any investment decision, we recommend that you seek outside advice from a qualified and registered investment advisor.

American Manganese Inc. is a paid marketing client of Stockpools Inc. and one or more of the owners does own shares in American Manganese Inc.