 Welcome back to Investor Intel on a cold and rainy day in Burlington, Ontario Today, we're with a clip from London. How are you? I am fine Peter. Thank you very much for having me on We have a beautiful blue sky today for a change So I hope I will send some of it to you today. That'd be nice So for our last talk of the year, let's talk about international lithium where you are the international the executive chair International lithium is a fairly well-known company with a fairly well-known story But you've hit milestones lately that are important to the investors So last time we talked about London black cabs that the first electric cabs are now running in London Can you talk about this for us? Yeah, that's true Peter. That's true all this world is changing so fast I would like to start with one, but very important number. It's two thousand eight hundred ninety eight percent This is the jump in demand for lithium which UBS estimates will happen in one hundred percent Evol two thousand eight hundred ninety eight percent. That's from the UBS report, right? Yeah, that's right. It's from the UBS report not from my blog anymore By the way, all of you should check it right is all latest updates The greatest demand in the UBS report would have been for lithium Second was for cobalt and for those of you who haven't read it UBS Torah Chevy volt apart and said if every car was made like this How would that affect world commodities? That's it's totally right. It's exact was lithium a number one was lead to with incredible 2898 percent cobalt was following the second one And what it means that electric cars are coming at a much faster pace than a lot of people are still Anticipating it for years. I have been writing it on my blog about this electric future now. It's happening Iconic London cap is going electric and you know what makes a difference Peter You are meeting a lot of investors with your very interesting cobalt company, right? I'm doing the same now with our international lithium I used to call people for weeks to get just an appointment now Everybody calling me and our team is out there telling the story and you know, what's interesting? You come in to meet investment bankers and now they drive in Tesla's They come into a meeting in now electric black cap. So you don't have to prove anything anymore It's very simple. It's important for me because electric cars are here And if you interested what's happening here particular on this side of the port in the UK right now, right? we just Managed to make a very important number when electric car sales in UK jumped over 2% in total car sales in UK and now we push 2.4% mark and just few short months ago All the world was just crossing the so important one percent mark for electric cars So let's talk big picture then globally in 2018. How many electric vehicles do you think will be sold? It's a great question Peter And now we should really look at this big picture and not a lot of people still Realizing it that we are having after I call it after Tesla's earthquake We have a tsunami of electric cars coming in now into the world It took us all our history as a human kind to reach one million electric cars of the road by 2015 and then it took us just a little bit Over one year still less than two years to make it two million electric cars on the roads in the world and Answering your question. I think personally next year We will cross another milestone when we will sell one million electric vehicles all over the world When they will account also for very important niche like electric buses and electric trucks Right and power walls and and everything else now I happen to think that Tesla is not a disruptive car company in Ten years when you look at who's going to be doing the large car sales It'll still be GM and Honda and Chevy and Tesla will be a bit player in that market But they may disrupt the power industry They could fundamentally change the nature of that Yes, yes, and again It's still quite new things for a lot of investors Then it's very important for people like us, you know to go out there Just a point out to the people where they should look for the next big thing because it's not only our talk anymore In the bar how we like to do it in Toronto one come over me, right? It's happening. It's happening on our streets. And now, you know, why it's all important Here because it happened to be number one in the world Ben in a wealth management, so they have all this very wealthy guys and now it's not just us You and me telling our story about electric cars, lithium, cobalt, nickel, whatever is else is needed Now they're telling their clients guys, you better look little demand will shoot up 2898% in the one hundred And now Bloomberg is telling guys it's going to be two hundred new electric car models by year 2020 Peter Amazing. So within international lithium, you have a few different projects that can supply that demand You had recent pulp results out at your famous Mariana project in Argentina How did tell us about those pump results Yes, Peter, it's correct. Just recently a couple of weeks ago We reported about another major milestone for development of our Mariana lithium project First of all, I should remind our viewers that we are Advancing this project in joint venture operations with Genfeng Lithium and Genfeng Lithium is the largest Integrated lithium producer in the world from China and now Genfeng managed to become Visiting top five lithium material producers in the world on par with such giants of our industry as Altamar, SQM, Genfeng, TNG and FMC Right, so Genfeng is G-A-N-G-F-A-N-G Yeah, that's correct. And they're the world's largest lithium producer processor Exactly, exactly. They are leading so-called lithium converters And most of them now are situated and located in China, of course Right. So why these results are so important? We managed to produce three different levels of continuous pumping from our salar Starting from 10 liters per second, 20 liters per second and 30 liters per second And already these results will be great because some salars can pump only 18 liters per second, for example But even more dramatic, we had results as high as 60 liters per second But we were very conservative, so we reported from 10 to 30 continuous pumping and next year 2018 it will be very important task for us to confirm in continuous pumping that we can pump 60 liters per second. I will translate a few geological Lithium-Brine Mambojamba Basically, our aquafire demonstrates a very big potential Potentially for production because we can pump a very big amount of material without negatively affecting our salar right system, without affecting the level and What is very important basically is that now we have another confirmation that this aquafire system demonstrates a very high transmissivity, high hydraulic conductivity and significant stability Translating it in a pure Canadian, as you know, which we are speaking today and at least I'm trying it means that Nothing is limiting our potential production from this salar Right. In the meaning of that we can produce very Important numbers extracting this materials in order to be later Being processed either by conventional method with the operation as you know, and maybe you can ask me a second question We reported in September very interesting results of report of proof of a concept study of Lithium extraction using by membrane technology Right, so I'm receiving the membrane technology for later You have two other pumps that are planned, right? Yes, well, that's correct And this is what we are discussing right now is our joint venture partner against Lithium and here I must mention Very important topics which we already discussed in our latest news release So we will conduct this three additional parking tests in total It will be In order to achieve further continuation this 60 liters per second But Mariana or somewhere Everything is at Mariana. We are talking about Mariana right now And we hope that this Studies will be finished in a second half of the year But now they are preparing our budget When we will have two major milestones for our project It will be preliminary economic assessment And number two, it will be pre-visibility studies Okay, great. So then that takes us down to the membrane separation proof of concept Yeah, a lot of there's a lot of technology to extract lithium extract in the loosest sense Much of the intellectual property is still trapped in china Tell us about the membrane technology you're looking at Yes, and this is correct. For example, like our strategic partner against Lithium They have more than 20 patents just for extraction of lithium from different chemical compositions. So basically they are one of the Most advanced technology companies in the world Who can extract lithium basically from everything starting from lithium spodium and concentrate Concentrated brine and finishing even with recycling. But this time we are talking about independent study, which is very important, which was done by a company called Synexus from South Africa And basically what they gave us a few short months ago They gave us the confirmation that lithium could be produced directly from our raw brine Using this cutting-edge advanced membrane separation and extraction technology So lithium was selectively recovered from the raw brine to produce lithium hydroxide and people, you know More than anybody else that lithium hydroxide is a high-value ingredient used directly in lithium battery manufacturing as a final product Like for example, Panasonic is using in order to produce lithium cathode Which Tesla later using in order to produce lithium batteries Right. So why this report was so important and what is important Peter here as you know with all our Junior mining stories and market in general. You can talk forever But it's very important when mr. Market as Warren Buffett called Call this beast right start finally to listen to you start to appreciate you and Basically after that report in september finally Our share price start to show at least Some appreciation of all our hard work and we are finishing this year very strongly On the highest level of our share price in years And of course Why it's happening because now investors can see at our Mariana and they know okay We know that there is a conventional way Already proven technology, which is very important how to extract lithium Suddenly these guys have something else. And for example If something will go wrong this conventional technology, and you know, it's always combination of cost and time And it's like a diff different chemical soup every single solar is unique chemical signature Now we already have a proven first level of bench testing Lithium hydroxide could be produced directly What it means to translate it to our potential investors of use or industry Followers it means that we can have a possible alternative to the natural evaporation process currently Proposed Mariana Basically this technology could provide a process route to produce lithium hydroxide directly from the raw brine Without need to remove contaminants like magnesium by lining it all means time and cost, right? And then based on our initial estimate the technology can achieve even higher recoveries The natural evaporation even with relatively low concentration of lithium so You're talking about the potential for higher production at a lower cost in last time Exactly. Exactly. And what is the critical point here for me personally? Why I'm personally still investing in this company and this year as you know Uh in my recent interviews, I introduced you to to the new company to see particularly I would like to mention my deputy chairman, John Visby Who is coming from very extensive banking background who checked everything in our company in very extensive New dungeons, and then he became my co-investor last year And then I was happy to join him with these other directors. So what is happening here? Basically now I do not worry about chemical signature of our solar at all because I have a further confirmation One or another way this solar works. We can produce lithium and now next year will be crucial And hopefully we will develop new valuation milestones when we will test economical potential What exactly process should be implemented or traditional evaporation? Right something new Or as you know in mining, what are the most dangerous walls new technology? Maybe we will make a combination of it, right? Right. So then let's quickly talk about mavis What's happening? What's happening at mavis? That's a hard rock project, right? Exactly. It's a hard rock project And you should look at the map on our website. So it's very interesting concert I like it particularly when we are talking about security of lithium supply because as you've heard Chinese companies are here Chinese companies are there. It's all beautiful Now the controlling already may be close to 75 percent of lithium had the exact market What's going to happen in a few short years when everybody will be jumping? On electric car benchmarking, right? And you know that some people will consider it that I have outrageous estimations But now more and more we are moving there market is realizing that in order to have All our commitments to global warming climate change you call it whatever you like But just to keep the temperature rise temperature increase below two degrees centigrade by 2040 we need to have 600 million electric cars on the roads It's not my estimation. It's from wait for it international energy agency And when I calculated it everybody should check it, of course, they can find all this data on my blog It's 36 million tons of lithium carbonate equivalent LSE must be produced by 2040 I was starting point Peter if you could believe it 200 000 tons produced in 2016. So it's nothing And I'm not alone here as you know, we met together with you city law of lithium America's former gentleman from Tesla itself. Yeah, uh, David there and he's talking about production to be We need to increase production of lithium to one million tons per year first then to three million tons per year And keep it at this level for maybe like 20 years Just know the tape if you can and if you find all Transportation good. We will check in with you again Probably around the mining show you're coming to Toronto. I assume for the mining show in March Yes, Peter. Yes. I'm looking forward to meet with all team at investor Intel and using this opportunity I would like to extend all our woman's three guys from all our team at international lithium to all your team at investor Intel to you personally and happy holidays. Happy new year. And I'm not afraid Merry christmas. If you still serve Thanks, Carol. Have a wonderful day