Creat Resources

Exploration and development resources company Creat Resources (CRH) could be set to profit from the world’s increasing demand for lithium.

The AIM-quoted concern, which owns assets in both Australia and China, has attracted considerable attention due to its holdings in Galaxy Resources, a Western Australia lithium producer. Creat currently holds a 19.9% stake in Galaxy, which exports the lithium from Australia to China.

COO Rex Chow told Growth Company Investor that Lithium will become an integral part of China’s increasingly electric bike and car market. He explained that ‘The Chinese government want lithium production to increase’ as it provides a ‘cheaper alternative’ to what is currently used in bicycles.

Creat is 50% owned by parent company Creat Group, the Chinese equity investment group that has built itself a firm reputation for its work on a number of projects, such as the apple juicing company Andre Juice. As Chow enthuses ‘Before Creat was involved it had only one line. Now it is one of the biggest producers of apple juice in the world.’

Creat, also involved in iron ore production at a site near Zeehan, Australia, something Chow notes the company is ‘looking to add a partner to’ is a company that holds a considerable deal of potential to grow via the increasing demand for lithium.

Having recently announced it will be receiving an interest free loan from the Creat Group, its financials have strengthened of late. Having doubled its share price in recent months, we think the shares are still worth a buy.