Rare Earth Lithium Stocks AMLME, AMEL and LTUM: Worth Mining for Profits?

American Lithium Minerals (OTC: AMLME), Amerilithium Corporation (OTC: AMEL) and Lithium Corporation (OTC: LTUM) are three rare earth lithium stocks that investors might want to take a closer look at to see if they could be mined for profits. For starters, when most people think of lithium, they think of lithium batteries that have become an increasingly important source of power for consumer electronic devices but the mineral is also essential for creating aircraft alloys and heat resistant glass and ceramics. And while lithium is relatively common, it can be considered a rare earth mineral as its generally found only in small quantities. For that reason, lithium mining stocks AMLME, AMEL and LTUM could be sitting on gold mines but analysts have also pointed out that there is a supply glut of lithium right now (despite rising demand) and that recent high trading volumes for small cap lithium stocks are unexplainable. Hence, here is a closer look at AMLME, AMEL and LTUM to help you decide whether or not you can mine a rare earth lithium mining stock for profits:

• American Lithium Minerals (OTC: AMLME) is an exploration-stage company involved in the development of lithium and boron resources in Nevada. Towards the end of May, American Lithium Minerals issued a press release stating that it was not able to timely file its quarterly report on Form 10-Q for the latest quarter – something that should always raise a flag with investors. Moreover and back in April, Barron’s noted that American Lithium Minerals (along with other lithium stocks) was having some wild price swings – which could give traders rather than buy-and-hold investor the chance to earn some profits. American Lithium Minerals recently fell 2.46% to $0.1902 and has a 52 week trading range of $0.16 to $0.99 a share.
• Amerilithium Corporation (OTC: AMEL), formerly Kodiak International, is an exploration stage company that acquires and explores for minerals such as gold and silver in Nevada plus the company owns certain mineral leases as part of the Athena Lithium Brine Project located in Alberta, Canada. Last Thursday, Amerilithium Corp. issued a press release announcing that they received promising results from both primary sampling and secondary sampling at one of their mining projects. Nevertheless, Amerilithium Corp. fell 8% yesterday to $0.23 and has a 52 week trading range of $0.20 to $0.99 a share. AMEL also has no revenues yet and has losses of –$256k, –$595k, -$163 and -$202 for each of the previous four quarters.
• Lithium Corporation (OTC: LTUM) is a development stage company that identifies, acquires and explores for metals and minerals with a particular focus on lithium in Nevada. In early June, Lithium Corporation announced that it had started drilling at its Salt Wells Lithium property in order to find where there might be sufficient quantities of lithium while back in April, the company announced positive brine samples. However, it should be noted that for the last four quarters, LTUM has losses of –$69k, –$93k, –$345k and –$309k respectively. Lithium Corporation recently rose 1.96% to $0.26 and has a 52 week trading range of $0.17 to $1.92 a share.

The bottom line: At the end of the day, small cap rare earth lithium mining stocks like AMLME, AMEL and LTUM will need to come up with viable lithium mining projects – which at this point in time is not a certainty.