• Bearish Goldman Sachs research report claims investor enthusiasm has led to lithium oversupply
  • Canaccord mining analyst Reg Spencer disagrees, “lithium projects are always behind schedule…always” 
  • ARO stakes highly-prospective lithium claims in the Kibby Basin, Nevada, which is known to host several major lithium clay projects

Here is all your ASX lithium news for Wednesday, June 1. 

 

Lithium prices across the board have gone parabolic since the bull market kicked off in January 2021, but a bearish Goldman Sach research report — plus news that a China co is buying 6 lithium mines in Africa to feed automaker BYD —  has brought it all to a halt… for now.

This is evident by the tumble roll in ASX lithium stocks we witnessed this morning – big boy Pilbara Minerals (ASX:PLS) dipped ~15%, Allkem (ASX:AKE) dropped ~13.6%, Galan (ASX:GLN) ~14.6% and Liontown (ASX:LTR) fell around 19%.

The Goldman Sachs report, released earlier this week, claimed although the long-term prospects for the battery metals remains strong due to the rapid uptake of electric vehicles (EVs), investor enthusiasm has led to an oversupply.

This is not the case, according to Cannacord mining analyst Reg Spencer.

“That oversupply in the market that Goldman Sachs is referring to is in lithium production from China lepidolite sources which is lower grade, difficult to process and more expensive to process in comparison to spodumene,” he said.

“I’ve been covering this sector for seven years and I can tell you supply always disappoints, especially from unconventional sources such as lepidolite that Goldman Sachs is referring to in their research report.

“Lithium projects are always behind schedule, always, and to say that the world’s supply issues are going to be resolved in three years from unconventional resources, which means higher costs to produce and extract…I think is wrong.”

 

Uncertain market factors, yes, prolonged down-turn, no

While we are in an environment where there are more uncertain factors at play, Spencer says this is not a prolonged downturn.

“It’s ridiculous, two months ago the market didn’t care about what was going to happen in 2023 but it is because of this report and reports by others including Credit Suisse, that everyone seems to be panicking and selling their shares.

“But it is important to note that all we have seen so far is a fall in equities.

“This is an equities market correction, if you have a look at the fundamentals of the lithium industry, they are still very strong.”

 

Here’s how ASX lithium stocks were tracking today:

Lithium stocks missing from our list? Shoot a friendly mail to [email protected]

 

CODE COMPANY Last %Mth %Wk % MARKET CAP
ADV Ardiden Ltd 0.0115 -23% 0% 5% $29,351,689
AGY Argosy Minerals Ltd 0.51 12% 28% -1% $697,699,763
1MC Morella Corporation 0.028 -24% 4% 0% $144,933,992
AML Aeon Metals Ltd. 0.034 -24% -6% 0% $32,053,802
ASN Anson Resources Ltd 0.145 0% 21% 0% $149,047,289
AVZ AVZ Minerals Ltd 0.78 -21% 0% 0% $2,752,409,203
CXO Core Lithium 1.335 -5% 5% -4% $2,416,632,608
EMH European Metals Hldg 0.95 -18% -1% -1% $135,145,886
ESS Essential Metals Ltd 0.575 -13% 5% -4% $147,869,842
EUR European Lithium Ltd 0.076 -21% -1% -3% $107,867,264
GLN Galan Lithium Ltd 1.455 -16% 1% -5% $467,253,021
INF Infinity Lithium 0.14 -20% 8% -3% $60,176,895
INR Ioneer Ltd 0.55 -19% 2% -5% $1,212,953,664
JRL Jindalee Resources 3.49 -20% 5% 0% $199,678,802
LIT Lithium Australia 0.092 -8% 7% 0% $95,235,201
LKE Lake Resources 1.465 -26% 2% -5% $2,075,248,405
LPD Lepidico Ltd 0.03 -12% 11% 0% $195,205,805
LPI Lithium Pwr Int Ltd 0.58 -26% 7% -5% $212,978,357
LTR Liontown Resources 1.3275 -9% 0% -6% $3,101,998,655
MIN Mineral Resources. 60.54 3% 0% -5% $12,080,500,898
FFX Firefinch Ltd 1.0575 -6% 13% -5% $1,311,179,975
MLS Metals Australia 0.083 -41% -14% -3% $37,410,210
AKE Allkem Limited 12.74 4% -5% -7% $8,742,292,359
PLL Piedmont Lithium Inc 0.895 -5% 10% -4% $493,278,698
PLS Pilbara Min Ltd 2.71 -5% -7% -8% $8,781,660,869
QPM Queensland Pacific 0.175 -10% 9% -3% $281,450,364
PSC Prospect Res Ltd 0.96 -1% 2% -1% $432,296,591
RLC Reedy Lagoon Corp. 0.026 -10% -7% 4% $13,708,931
SYA Sayona Mining Ltd 0.2075 -35% 1% -6% $1,581,376,238
TKL Traka Resources 0.008 -20% 0% 0% $5,510,196
TON Triton Min Ltd 0.028 -13% -3% 0% $35,245,957
VUL Vulcan Energy 7.97 -6% 8% -3% $1,078,173,287
GL1 Globallith 1.565 -23% -5% -4% $258,678,157
BMM Balkanminingandmin 0.27 -19% -10% -11% $9,988,750
LEL Lithenergy 1.19 -18% -14% 0% $53,728,500
ARN Aldoro Resources 0.23 -16% 10% 0% $22,819,125
NMT Neometals Ltd 1.32 -17% 2% -4% $754,017,545
IGO IGO Limited 11.81 -10% 0% -7% $9,571,865,156
CHR Charger Metals 0.545 -21% -5% 0% $17,756,664
AAJ Aruma Resources Ltd 0.081 -23% 7% -5% $13,341,728
PAM Pan Asia Metals 0.505 -6% -2% -2% $37,934,202
AX8 Accelerate Resources 0.036 -28% 3% 0% $9,484,520
AM7 Arcadia Minerals 0.245 -14% 7% 0% $8,573,163
AS2 Askarimetalslimited 0.495 -27% 0% 0% $20,581,902
BYH Bryah Resources Ltd 0.047 -16% 9% 0% $10,631,737
DTM Dart Mining NL 0.069 -5% 3% 0% $9,332,951
EMS Eastern Metals 0.18 -14% 0% 3% $6,230,000
FG1 Flynngold 0.14 -13% -3% 0% $8,968,547
FRS Forrestaniaresources 0.195 -46% 0% 0% $5,479,267
GSM Golden State Mining 0.064 -16% -7% 0% $6,644,138
IMI Infinitymining 0.165 -18% 6% 0% $9,487,500
LRV Larvottoresources 0.32 -26% 10% 0% $13,186,400
MMC Mitremining 0.14 -20% -3% 0% $3,791,914
RAG Ragnar Metals Ltd 0.046 -6% 7% -2% $17,821,690
SHH Shree Minerals Ltd 0.011 -15% 22% 0% $13,444,606
TMB Tambourahmetals 0.21 -16% 0% 0% $8,650,446
TEM Tempest Minerals 0.051 -49% 6% 9% $23,724,010
TSC Twenty Seven Co. Ltd 0.004 0% 33% 33% $7,982,442
WCN White Cliff Min Ltd 0.023 -18% 10% 0% $15,032,877
WML Woomera Mining Ltd 0.029 16% 53% -3% $20,604,992
AZL Arizona Lithium Ltd 0.145 -17% 0% -3% $334,907,882
CRR Critical Resources 0.081 -19% 3% -2% $123,481,414
KGD Kula Gold Limited 0.033 -31% 0% -3% $7,315,971
LRS Latin Resources Ltd 0.115 -15% -4% 0% $221,861,202
PNN PepinNini Minerals 0.485 -44% 3% -4% $31,059,265
WR1 Winsome Resources 0.425 -10% 2% -3% $59,450,157
KZR Kalamazoo Resources 0.335 -17% -4% 0% $48,640,115
MTM Mtmongerresources 0.205 3% 41% -2% $7,614,607
QXR Qx Resources Limited 0.052 -26% 0% 0% $44,686,841
SCN Scorpion Minerals 0.105 19% 5% 0% $34,842,275
AZI Altamin Limited 0.096 28% 0% -1% $37,996,525
ENT Enterprise Metals 0.014 -22% 0% 0% $9,025,056
KAI Kairos Minerals Ltd 0.026 -10% -4% 0% $51,014,431
STM Sunstone Metals Ltd 0.056 -16% 2% -2% $146,743,446
PGD Peregrine Gold 0.5 -2% 2% 0% $19,143,335
AVW Avira Resources Ltd 0.0045 -10% 0% 13% $8,475,160
NVA Nova Minerals Ltd 0.675 -12% -1% 4% $117,131,485
GT1 Greentechnology 0.99 -12% 13% -4% $140,318,960
BNR Bulletin Res Ltd 0.2 0% 18% -5% $60,919,131
RMX Red Mount Min Ltd 0.009 -5% 13% 6% $13,960,093
CAI Calidus Resources 0.84 -16% 2% -1% $342,383,109
MRR Minrex Resources Ltd 0.058 -15% 12% 2% $57,496,784
RDT Red Dirt Metals Ltd 0.52 1% -7% -4% $163,757,390
A8G Australasian Metals 0.385 -20% -1% 0% $15,850,640
EFE Eastern Resources 0.032 -30% -11% 0% $31,821,972
MQR Marquee Resource Ltd 0.1075 -17% 8% 0% $33,534,462
SRZ Stellar Resources 0.023 -21% 0% 5% $18,464,658
LSR Lodestar Minerals 0.01 -29% 0% 0% $17,384,373
NWM Norwest Minerals 0.043 -22% -9% 0% $7,766,118
AOA Ausmon Resorces 0.009 -18% 0% 13% $6,858,315
VKA Viking Mines Ltd 0.009 -18% 13% 0% $9,227,326
IPT Impact Minerals 0.011 -8% 10% 10% $21,904,616
SRI Sipa Resources Ltd 0.038 -22% -3% 0% $7,790,943
VMC Venus Metals Cor Ltd 0.2 5% 14% 0% $30,215,737
RGL Riversgold 0.041 -46% -5% 0% $31,011,416
ZNC Zenith Minerals Ltd 0.415 -3% 12% 0% $142,720,224
RAS Ragusa Minerals Ltd 0.15 69% 36% -3% $19,476,964
G88 Golden Mile Res Ltd 0.052 -20% 0% 0% $10,594,096
EPM Eclipse Metals 0.027 -16% 4% 4% $49,949,287
EVR Ev Resources Ltd 0.042 -24% 5% -5% $40,743,299
WC8 Wildcat Resources 0.037 -8% 16% 0% $23,875,091
MNS Magnis Energy Tech 0.405 -10% 4% -2% $401,091,412
RIO Rio Tinto Limited 114.63 2% 4% 0% $42,485,695,692
THR Thor Mining PLC 0.013 -13% 4% -4% $14,282,209
CZL Cons Zinc Ltd 0.025 -7% 4% 0% $8,783,945
MXR Maximus Resources 0.073 -26% 4% -3% $23,842,933
DRE Dreadnought Resources Ltd 0.042 -5% 0% 0% $119,224,709
MM1 Midasmineralsltd 0.345 0% 8% 0% $18,781,153
M2R Miramar 0.125 -31% 4% 0% $7,986,568
AOU Auroch Minerals Ltd 0.087 -21% -2% -3% $32,517,162
XTC Xantippe Res Ltd 0.011 -21% 0% 0% $84,513,626
MMG Monger Gold Ltd 0.3 7% -3% 0% $7,500,000
LRD Lordresourceslimited 0.3 -21% -8% 0% $9,235,386
WMC Wiluna Mining Corp 0.48251 -24% 0% 0% $101,961,574
AUN Aurumin 0.18 -14% 3% 0% $19,660,185
ZEO Zeotech Limited 0.057 -10% 8% 2% $85,395,266
ALY Alchemy Resource Ltd 0.024 -37% -8% 0% $22,873,777
LIS Lisenergylimited 0.64 0% -4% 0% $106,185,080
GW1 Greenwing Resources 0.325 -27% 2% 5% $38,206,678
KTA Krakatoa Resources 0.083 -28% 11% -2% $29,300,343
TYX Tyranna Res Ltd 0.019 245% 111% 0% $29,114,853
DAF Discovery Alaska Ltd 0.075 114% 12% 0% $16,742,602
FTL Firetail Resources 0.33 -19% 3% 0% $20,388,225
IR1 Irismetals 0.37 -41% -8% 0% $18,722,000
LNR Lanthanein Resources 0.025 -26% 0% 0% $20,945,639
DAL Dalaroometalsltd 0.11 -29% -8% 0% $3,286,250
TKM Trek Metals Ltd 0.094 7% 29% 2% $28,562,334
CY5 Cygnus Gold Limited 0.175 13% 21% 0% $20,647,430

 

Only a total of 16 stocks ended in the green, while 64 flatlined and 47 finished in the red.

Who’s got news out today?

Astro Resources (ASX:ARO)

Astro has staked highly-prospective lithium claims in the Kibby Basin, Nevada, which is known to host several major lithium clay projects, including Ioneer’s (ASX:INR) Rhyolite Ridge Project and American Lithium Corporation’s TLC Lithium Project.

ARO says these claims provide the company with low-cost entry to a high-value battery metals commodity in a world-class resources jurisdiction.

It is also set to acquire 80% of Greenvale Mining’s Georgina IOCG Project in the new East Tennant Mineral Province of the Northern Territory, with the right to increase to 100%.

Astro chairman Jacob Khouri said this represents an exciting opportunity for Astro to gain exposure to a future facing battery commodity with an exceptional growth outlook.

“I am particularly delighted that, as part of this transaction, two of Australia’s most respected mining executives – Neil Biddle and Tony Leibowitz – will be joining the board of Astro, bringing a wealth of specialist battery metals expertise,” he said.

 

Nova Minerals (ASX:NVA)

NVA says its 37% owned Snow Lake Resources has intersected high-grade lithium in four separate pegmatite dykes containing more than 1% Li2O where drilling continues to validate resource expansion across the property in northern Manitoba, Canada.

“Of note are the deep and wide intersections in hole TBL-035 seen at 429.50m at depth,” the company said.

“This could indicate that this pegmatite system may continue much deeper on the project than initially anticipated.

“Future drilling will test the possible depth extensions of the TBL dyke.”