Disseminated on behalf of Atlas Salt Inc. ValueTheMarkets, a trading name of Digitonic Ltd., was compensated by Atlas Salt Inc two hundred and sixty thousand US dollars starting 4th November 2024 for a period of 4 weeks until 30th November 2024 to produce and disseminate this content. Digitonic Ltd. does not own a position in Atlas Salt Inc.

Investment Opportunity

Could Atlas Salt Be an Undervalued Stock to Watch?

Materials

Atlas Salt | Listed on: (TSXV: SALT) (OTCQB: REMRF)

Atlas Salt is a small-cap growth stock with a potentially undervalued flagship project. The company has a remarkable asset in its Great Atlantic deposit, which is projected to boost regional GDP by $4.8 billion.

For investors seeking undervalued stocks, Newfoundland-based Atlas Salt Inc. (TSXV: SALT) (OTCQB: REMRF) offers a unique opportunity. It is a pure salt play on a North American stock exchange, and no deposit other than Atlas’ Great Atlantic could soon bring much-needed new domestic road salt supply to North America.

Atlas Salt could be an undervalued stock to watch, given several indicators that a stock is undervalued. Its flagship Great Atlantic Salt Project has promising growth potential, with a projected $4.8 billion boost to regional GDP, strong market demand for salt, and strategic infrastructure advantages.

In August 2024, Atlas Salt made a significant move by entering a non-binding Memorandum of Understanding (MOU) with Scotwood Industries for retail distribution to the Canadian market. By allocating approximately 50% of its production for the Canadian market through a strategic offtake, Atlas minimizes risk and strengthens its financial outlook.

Additionally, the company's innovative, low-cost production approach and focus on sustainability, combined with the recent feasibility study, suggest the possibility of further value realization. Investors may find its long-term revenue prospects, de-risked operations, and potential to displace international suppliers compelling factors to monitor.

Atlas Salt’s Great Atlantic Salt Project stands out for multiple reasons:

A product with stable prices and increasing market demand.
The first new underground salt mine in North America in over 20 years.
A world-class resource set in a strategic location close to key markets.
An innovative design that will use the latest, state-of-the-art mining technology.
A focus on sustainability, with extremely low greenhouse gas emissions.
50% of its production is already allocated to a strategic offtake agreement.
The potential to provide a $4.8 billion boost to regional GDP.

About Atlas Salt

Atlas Salt Inc. (TSXV: SALT) (OTCQB: REMRF) is a Canadian exploration company with its head office in St. John’s, Newfoundland. Atlas is committed to responsible and sustainable mining practices.

Its flagship venture, the Great Atlantic Salt Project, is strategically located in the Bay St. George Basin in southwest Newfoundland, right in the heart of the North American road salt market. It is next to the Trans Canada Highway, close to a deep-water port, and hydroelectric and high-voltage power is readily available, ensuring it will be fully provisioned for industrial activity.

The deposit contains an estimated 860 million tonnes of Rock Salt, with a high purity level of 95.2% NaCl (sodium chloride) in the Inferred category¹. Additionally, there are 383 million tonnes of Rock Salt with a high purity level of 96% NaCl in the Indicated category as quantified by an independent, regulatory-compliant feasibility study and resource assessment².

Cross-Section of Great Atlantic Salt Deposit Illustrating Grade Variations

Innovative Mine Design

Atlas Salt’s Great Atlantic mine is marching toward construction with plans in place for an innovative and environmentally friendly design. Using large-scale continuous miners and battery-electric truck haulage, the company is employing technological innovations with scalable production potential.

State-of-the-art mining equipment includes electric and battery-electric units, ensuring high performance, low emissions, and reduced ventilation requirements. This forward-thinking approach to mine design is sure to enhance operational efficiency and align with energy-efficient practices in the mining industry.

Atlas has already lined up Sandvik Mining and Rock Solutions as its preferred equipment supplier and integrated project delivery partner³. Their battery-electric fleet plans include continuous miners, haul trucks, scooptrams, and an AutoMine® system with tele-remote and autonomous operation¹.

Additionally, the mine’s adaptive infrastructure and modular expansion capability underscore its ability to grow to achieve expansionary goals of 4.0 million metric tons per annum (Mtpa) of production¹.

Atlas Salt is aiming for long-term success in the mining sector. The project’s extensive inferred mineral resources total 868 million tonnes¹, and the leadership team has a realistic expectation of extending the life of the mine beyond 34 years¹.

Figure 1: Atlas Salt. High purity salt sample and schematic representation of Great Atlantic Salt Deposit.

A Strong Investment Case

Eastern North America continues to rely heavily on overseas imports to meet annual road salt demand of approximately 25 million tonnes⁴. That’s why Atlas Salt’s Great Atlantic Salt Project looks destined to play a major part in ensuring that roads, highways and sidewalks are as accessible as possible during winter – saving lives and maintaining economic activity.

Envisioning the success of The Great Atlantic Salt Project is easy when considering its incredible combination of innovative mine design and compelling project economics. It’s also backed by a leadership team with proven success, presenting a very strong investment proposition.

Atlas has been substantially de-risked⁵ across multiple investing metrics – commodity type, location and jurisdiction, management, geology, mining approach, community engagement and environmental credentials.

Additionally, the expectation that The Great Atlantic Salt Project can displace foreign suppliers effectively, means it presents a compelling opportunity to investors looking for exciting growth prospects.

Main international salt trade patterns

Reasons to Invest

Premier Asset and Infrastructure

The Great Atlantic Salt Project is positioning itself to become a low-cost, long-life producer and the first new underground salt mine in North America in more than 20 years. Power, roads and a deep-water port surround the deposit.
Financing and Construction Ready

A feasibility study and greenhouse gas (GHG) emissions survey confirm The Great Atlantic Salt Project's viability. It has passed its environmental assessment, lined up equipment financing, and started pre-construction. The project is expected to add $4.8 billion to regional GDP.
Strong Market Potential

Salt demand and price are stable with diversified end markets. Competing mines have aging assets, and international suppliers can be displaced based on cost, significantly shorter shipping distance, greenhouse gas emissions, and security of supply.
Winning Team Assembled

Driven by accomplished leader Rick LaBelle, Atlas Salt is in great shape as it advances toward construction. Supporting the CEO is a team boasting extensive operational expertise in mining and a wealth of large-scale project construction experience.
Path to Revenue Fueled by Strategic Offtake

Atlas is on a path to sustainable revenue through a strategic offtake with Scotwood Industries, allocating 50% of production to the Canadian retail market. This partnership and Atlas's low costs, cash flow potential, and green initiatives position it to drive long-term growth.
Valuation Upside and Growth Potential

A Feasibility Study valued the project at over $550 million (after-tax NPV at 8%) with a projected 34-year mine life. De-risking strategies support an expansion case.

Discover Exclusive Investing Insights

Access our in-depth ONLINE REPORT to learn all about this potentially undervalued stock opportunity and Atlas Salt’s high-growth potential.

Sources:

1. Atlas Salt. Corporate Presentation: A unique & differentiated story. September 2024. Retrieved from https://atlassalt.com/

2. Atlas Salt. SLR Amended NI 43-101 Feasibility Study for the Great Atlantic Salt Project. May 1, 2024. https://atlassalt.com/wp-content/uploads/2024/05/SLR-20240501-Atlas-Salt-Great-Atlantic-NI-43-101-FS-AMENDED.pdf

3. Atlas Salt. Atlas Salt Enters Strategic MOU with Sandvik Mining and Rock Solutions for Underground Mobile Equipment Supply, Including $73 Million Financing. September 9, 2024. https://atlassalt.com/atlas-salt-enters-strategic-mou-with-sandvik-mining-and-rock-solutions-for-underground-mobile-equipment-supply-including-73-million-financing/

4. Atlas Salt. Market Opportunity. https://atlassalt.com/market/

5. Atlas Salt. Atlas Salt Announces De-risked Development Schedule for the Great Atlantic Salt Project. August 12, 2024. https://atlassalt.com/atlas-salt-announces-de-risked-development-schedule-for-great-atlantic-salt-project/

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