Seeking Alpha: Sirocco Isn't The Deal Canada Lithium Investors Want

Tis the season of tougher times for many mining companies. Thompson Creek (TC) is groaning under the threat of not being able to raise enough cash to complete its expansion plans, Mercator Minerals (OTC:MLKKF) sold itself at a fraction of NAV due to severe funding/cash issues, and even the major players like BHP Billiton (BHP) and Rio Tinto (RIO) are pulling back on their capex and exploration budgets. In that regard, then, there's nothing so particularly strange about Canada Lithium (OTCQX:CLQMF) (CLQ.TO) agreeing to a deal with Sirocco Mining (SIM.TO) that buys them time, breathing room, and cash.

Although arguably necessary, this isn't the deal that investors in Canada Lithium are hoping to see. With a hard rock lithium mining asset in Quebec that could produce over 10% of the world's lithium carbonate, the hope here is that a major lithium producer like Rockwood (ROC), FMC (FMC), or Socieded Quimica y Minera (SQM) steps up and acquires Canada Lithium as a means of diversifying its lithium assets. I believe that's still a viable expectation, and although this is a speculative, high-risk opportunity, the de-risking of Canada Lithium's balance sheet and the prospects for profitable near-term production make this a name worth watching.

Read the full article at Seeking Alpha:
Sirocco Isn't The Deal Canada Lithium Investors Want

Seeking Alpha: Rockwood Is Lean And Mean, But Not Overlooked

After a series of deals, Rockwood Holdings (ROC) management now has the business it says it wanted. In agreeing to sell the ceramics, clay-based additives, and pigments businesses, Rockwood is not only about to be flush with cash, but a company highly focused on and committed to its lithium and surface treatment businesses.

That's perfectly fine with me, as I think there are solid reasons to expect good growth in lithium demand and I believe Rockwood can put surplus capital to work expanding the surface treatment operations through select/precision acquisitions. What's not so fine with me is the valuation. I get that many investors are enamored of what electric vehicle adoption could mean for future lithium demand, but I'm not as excited about an opportunity where I have to pay more than 10x EBITDA just to get today's valuation on the shares.

Please read more here:
Rockwood Is Lean And Mean, But Not Overlooked

Investopedia: Rockwood Gets Its Deal For CeramTec

Rockwood Holdings (NYSE:ROC) hasn't been shy in talking about its intentions to simplify its operations around its high-quality lithium business and is surface treatments business. With Monday's announcement of the sale of CeramTec to a private equity buyer, Rockwood has taken a major step toward that vision. While I would have preferred to see Rockwood keep CeramTec, the company got a good price and should be relatively close to a sale of the titanium dioxide and performance additives businesses, which will free the company to repay debt and pursue M&A to beef up the surface treatments operations.

Please follow this link for more:
http://www.investopedia.com/stock-analysis/061713/rockwood-gets-its-deal-ceramtec-roc-mmm-sqm-dd-kyo.aspx

Investopedia: Rockwood Has Its Risks, But Also Some Apparent Value

It's hard enough to own a chemical company today, with the volatility in input costs and the wobbly state of the global economy. Factor in a sizable sales exposure to Europe, and it's not exactly surprising that Rockwood Holdings (NYSE:ROC) is off its best levels. Nevertheless, with solid exposure to growth markets like lithium and advanced ceramics, and management's plans to monetize non-core assets actively, these shares may be worth a look for investors that are more aggressive.

Please continue here:
http://stocks.investopedia.com/stock-analysis/2012/Rockwood-Has-Its-Risks-But-Also-Some-Apparent-Value-ROC-SQM-HUN-DD0531.aspx