• Noel Ong

Pan Asia Metals Limited (ASX: PAM) - An Economical Lithium Story in Thailand.


Coffee with Samso Episode 144 with Paul Lock, Executive Chairman and Managing Director of Pan Asia Metals Limited (ASX: PAM) is all about the next steps in making the Lithium story in Thailand a reality.


The company has been transformed since we last spoke in May 2021. The market capitalisation of the company has tripled since our first Coffee with Samso. The story of a company with aspirations to become a lithium producer within a stone's throw from major automotive manufacturers is now at a reality stage of the journey.


Pan Asia Metals is now on the verge of announcing their maiden Mineral Resource Estimate which will highlight the true potential of the company. Pan Asia Metals is on its way to establishing itself as a mature lithium player on the ASX.


Our market is on our doorstep: The Eastern Economic Corridor in Thailand - where there's a big push in LIBs and EVs. Thailand is the 4th largest auto producer in Asia and the largest in SE Asia and has a very comprehensive EV and battery policy because they want to retain their market position.

Some viewers who look at this story may feel a large jurisdiction issue. However, Paul Lock makes some supportive narratives which explain why he is so confident about making this story work for his shareholders.


In the past, there was no real demand on lithium, so there was no focus on cost structures. Now, with an increasing demand, there's been an increasing focus on extracting more for less - cost structures look better. That's what's happening in China.

As the market is consolidating itself with the recent turbulent movements, it is another argument in finding the right company with management that has the right strategy.


The reason we are in SE Asia is because we want to be competitive and want to be near our consumers. It's all about being low on the cost curve so we can ride out the market cycle in the long term.
Generally, investors are looking at short-term price cycles. We need to consider the long-term price cycle because our projects got to be bankable.

Pan Asia Metals is all about creating a business that has a low cost of operations, low CAPEX and a viable business. Take the time to watch Paul deliver his thoughts on the Pan Asia Metal story.


Chapters:

00:00 Start

00:20 Introduction

00:58 Paul introduces Pan Asia Metals Limited.

02:17 Location of PAM projects.

02:46 Reasons why PAM is in Thailand.

03:48 Thailand ministry delegation going to project area.

04:17 Deliverables. How has the market responded to your business strategy?

07:11 What are the issues for the project?

10:16 Has the mica lithium processing discussion settled?

11:55 Mica lithium minerals are now part of the Lithium family.

13:51 Everything is market driven.

14:23 The Lithium Narrative - Lots of Lithium in the ground but Processing is the bottleneck.

16:35 Which path is PAM taking to be a producer ?

18:50 Future of the lithium space in battery.

20:27 Can PAM be played out as they are a small company?

23:16 Jurisdiction risk investing outside of Australia?

28:39 Countering the Jurisdiction question.

28:58 Complying with ESG makes things work.

29:40 Good business principals drive process.

30:34 News flow.

32:32 Why is PAM flying under the radar?

34:42 Why PAM?

36:32 Conclusion


PODCAST



About Paul Lock

Executive Chairman & Managing Director

Member of AUSIMM

Pan Asia Metals


Paul has been involved in minerals exploration in South East Asia since 2012, with his work in this region forming the foundation of what is now Pan Asia Metals.


Before Pan Asia Metals, Paul was a corporate adviser at Everspring Partners, a boutique Sydney-based advisory firm that he founded. Before Everspring, Paul worked in corporate advisory and leveraged finance roles at the Commonwealth Bank of Australia. Paul initially focused on corporate and single asset project finance in the resource sector before moving into leveraged finance for private equity initiatives and then into a corporate advisory role where he was sector agnostic and focused on generating corporate transactions.


Prior to banking, Paul worked for Rothschild & Co in Australia where he was a derivatives trader and a high yield bond investor focusing on a variety of asset classes, generally distressed or complex assets. Paul also had some involvement in structuring derivatives solutions for resource companies in conjunction with Rothschild’s corporate advisory team. Prior to Rothschild, Paul worked for Japanese trading conglomerate Marubeni Corporation in the soft commodity trading division.


Paul graduated from Hale School in Perth, Western Australia, and has obtained the following academic qualifications: Master of Political Economy, University of Sydney; Master of International Studies, University of Sydney; Master of Commercial Law, Macquarie University; Master of Business Administration, Macquarie Graduate School of Management; and Bachelor of Business, Marcus Oldham College. Paul is an associate member of AusIMM.


About Pan Asia Metals Limited


Pan Asia Metals Limited (ASX:PAM) is a battery and critical metals explorer and developer focused on the identification and development of projects in Asia that have the potential to position Pan Asia Metals to produce metal compounds and other value-added products that are in high demand in the region.


Pan Asia Metals currently owns two lithium projects and one tungsten project. The projects are located in Thailand, a low cost advanced industrial economy, and fit Pan Asia Metal’s strategy of developing downstream value-add opportunities situated in low-cost environments proximal to end market users.


Complementing Pan Asia Metal’s existing project portfolio is a target generation program which identifies desirable assets in the region. Through the program, Pan Asia Metals has a pipeline of target opportunities which are at various stages of consideration. In the years ahead, Pan Asia Metals plans to develop its existing projects while also expanding its portfolio via targeted and value-accretive acquisitions.


 

Disclaimer

The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer.

VMS (Volcanogenic Massive Sulfide) Deposits Explained


In simple terms, Volcanic-associated Massive Sulphide (VMS) deposits are caused by underground metal-rich volcanoes rising and creating a cooking environment.


I suggest you download this eBook which explains the VMS and How to Add Value to your Share Portfolio

A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook.


If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au.

About Samso