Lithium prices could recover in the second half of 2023. Pic: via Getty Images
Eye on Lithium: Could spodumene pricing pick up in the second half of this year?
Mining
share
- Pilbara Minerals expects prices to strengthen in the second half
- IEA forecasts continued EV demand growth
- Lightning Minerals to start drilling at Dundas
All your lithium news, Friday April 28.
Pilbara Minerals (ASX:PLS) expects spodumene pricing to continue softening in the current quarter until pricing for lithium chemicals stabilises in China.
It expects prices to strengthen in the second half of the year as restocking of inventory levels in China occurs across the supply chain.
This is backed by the International Energy Agency’s latest Global Electric Vehicle Outlook flagging that EV sales are expected to grow by another 35% this year to reach 14 million.
It expects major markets like China to see rapid uptake and for the average EV market share across the US, EU and China to be about 60% by 2030.
In its March quarterly, the lithium producer recorded average estimated realised sales price for spodumene concentrate of US$4,840/dmt based on a 5.3% product grade, or US$5,522/dmt on a SC6 basis.
This is down almost 12% from the US$6,273/dmt on a SC6 equivalent basis it received during the December 2022 quarter.
Battery manufacturing capacity is expected to keep pace with this growth in EV demand, which is in turn likely to deliver corresponding increase in lithium consumption.
Here’s how ASX lithium stocks are tracking:
| CODE | COMPANY | PRICE | TODAY RETURN % | MARKET CAP |
|---|---|---|---|---|
| RLC | Reedy Lagoon Corp. | 0.008 | 33% | $3,400,318 |
| LEL | Lithenergy | 0.58 | 12% | $31,278,000 |
| DAF | Discovery Alaska Ltd | 0.049 | 11% | $9,866,327 |
| MQR | Marquee Resource Ltd | 0.024 | 9% | $7,198,565 |
| WR1 | Winsome Resources | 1.4 | 9% | $208,211,784 |
| LRS | Latin Resources Ltd | 0.135 | 8% | $316,040,198 |
| ADV | Ardiden Ltd | 0.007 | 8% | $17,474,180 |
| MAN | Mandrake Res Ltd | 0.0395 | 7% | $22,154,117 |
| RAG | Ragnar Metals Ltd | 0.016 | 7% | $5,687,773 |
| GSM | Golden State Mining | 0.033 | 6% | $3,627,440 |
| ASN | Anson Resources Ltd | 0.18 | 6% | $207,634,210 |
| PAT | Patriot Lithium | 0.27 | 6% | $15,526,313 |
| PLS | Pilbara Min Ltd | 4.185 | 6% | $11,872,133,535 |
| LPD | Lepidico Ltd | 0.0095 | 6% | $68,739,946 |
| FG1 | Flynngold | 0.076 | 6% | $7,406,895 |
| MMC | Mitremining | 0.285 | 6% | $10,323,477 |
| LRV | Larvottoresources | 0.29 | 5% | $18,495,049 |
| MNS | Magnis Energy Tech | 0.205 | 5% | $199,939,639 |
| CRR | Critical Resources | 0.042 | 5% | $63,790,195 |
| VUL | Vulcan Energy | 6 | 5% | $823,318,628 |
| AML | Aeon Metals Ltd. | 0.024 | 4% | $25,217,214 |
| AX8 | Accelerate Resources | 0.024 | 4% | $8,684,840 |
| CHR | Charger Metals | 0.49 | 4% | $20,545,753 |
| CHR | Charger Metals | 0.49 | 4% | $20,545,753 |
| NMT | Neometals Ltd | 0.615 | 4% | $326,117,294 |
| AKE | Allkem Limited | 12.295 | 4% | $7,524,365,415 |
| AS2 | Askarimetalslimited | 0.385 | 4% | $23,266,840 |
| AGY | Argosy Minerals Ltd | 0.405 | 4% | $547,718,924 |
| LKE | Lake Resources | 0.435 | 4% | $597,426,777 |
| CXO | Core Lithium | 0.9725 | 3% | $1,747,005,786 |
| ALY | Alchemy Resource Ltd | 0.015 | 3% | $17,082,106 |
| GL1 | Globallith | 1.375 | 3% | $283,520,430 |
| JRL | Jindalee Resources | 2.21 | 3% | $122,790,987 |
| LPI | Lithium Pwr Int Ltd | 0.32 | 3% | $195,020,244 |
| STM | Sunstone Metals Ltd | 0.035 | 3% | $89,095,178 |
| MLS | Metals Australia | 0.036 | 3% | $21,246,267 |
| LIT | Lithium Australia | 0.037 | 3% | $43,962,900 |
| QXR | Qx Resources Limited | 0.037 | 3% | $32,287,044 |
| PLL | Piedmont Lithium Inc | 0.8475 | 3% | $357,042,675 |
| INR | Ioneer Ltd | 0.3075 | 3% | $629,501,480 |
| PNN | Power Minerals Ltd | 0.41 | 3% | $28,898,337 |
| EUR | European Lithium Ltd | 0.092 | 2% | $134,031,526 |
| BUR | Burleyminerals | 0.29 | 2% | $17,503,091 |
| LM1 | Leeuwin Metals Ltd | 0.305 | 2% | $12,086,998 |
| DRE | Dreadnought Resources Ltd | 0.063 | 2% | $205,389,150 |
| GT1 | Greentechnology | 0.635 | 2% | $119,211,496 |
| LLL | Leolithiumlimited | 0.5225 | 1% | $508,128,310 |
| EG1 | Evergreenlithium | 0.36 | 1% | $19,961,650 |
| PGD | Peregrine Gold | 0.38 | 1% | $21,038,479 |
| SYA | Sayona Mining Ltd | 0.1925 | 1% | $1,704,065,526 |
| AAJ | Aruma Resources Ltd | 0.077 | 1% | $11,929,074 |
| MIN | Mineral Resources. | 72.97 | 1% | $13,938,844,804 |
| IGO | IGO Limited | 13.62 | 1% | $10,207,970,119 |
| TUL | Tulla Resources | 0.32 | 1% | $102,172,771 |
| AVZ | AVZ Minerals Ltd | 0.78 | 0% | $2,752,409,203 |
| EMH | European Metals Hldg | 0.595 | 0% | $74,900,957 |
| INF | Infinity Lithium | 0.12 | 0% | $55,511,051 |
| PSC | Prospect Res Ltd | 0.15 | 0% | $69,338,919 |
| TKL | Traka Resources | 0.008 | 0% | $6,938,634 |
| TON | Triton Min Ltd | 0.033 | 0% | $45,631,878 |
| ARN | Aldoro Resources | 0.165 | 0% | $22,179,918 |
| BYH | Bryah Resources Ltd | 0.023 | 0% | $6,468,830 |
| DTM | Dart Mining NL | 0.06 | 0% | $9,337,234 |
| EMS | Eastern Metals | 0.06 | 0% | $2,343,865 |
| FRS | Forrestaniaresources | 0.079 | 0% | $4,810,413 |
| CTN | Catalina Resources | 0.0045 | 0% | $5,573,191 |
| TMB | Tambourahmetals | 0.12 | 0% | $4,943,112 |
| EMC | Everest Metals Corp | 0.076 | 0% | $9,836,916 |
| WCN | White Cliff Min Ltd | 0.008 | 0% | $7,672,435 |
| WML | Woomera Mining Ltd | 0.011 | 0% | $10,517,773 |
| AZL | Arizona Lithium Ltd | 0.044 | 0% | $118,402,491 |
| KGD | Kula Gold Limited | 0.015 | 0% | $5,598,179 |
| KZR | Kalamazoo Resources | 0.14 | 0% | $21,152,679 |
| AZI | Altamin Limited | 0.078 | 0% | $30,553,907 |
| ENT | Enterprise Metals | 0.007 | 0% | $4,935,565 |
| KAI | Kairos Minerals Ltd | 0.022 | 0% | $43,210,057 |
| AVW | Avira Resources Ltd | 0.003 | 0% | $6,401,370 |
| BNR | Bulletin Res Ltd | 0.085 | 0% | $24,955,244 |
| MRR | Minrex Resources Ltd | 0.016 | 0% | $17,357,880 |
| A8G | Australasian Metals | 0.155 | 0% | $6,381,427 |
| SRZ | Stellar Resources | 0.012 | 0% | $12,055,571 |
| LSR | Lodestar Minerals | 0.0055 | 0% | $10,001,405 |
| AOA | Ausmon Resorces | 0.005 | 0% | $4,846,447 |
| VKA | Viking Mines Ltd | 0.012 | 0% | $12,303,101 |
| IPT | Impact Minerals | 0.013 | 0% | $32,257,817 |
| SRI | Sipa Resources Ltd | 0.026 | 0% | $5,932,112 |
| RGL | Riversgold | 0.015 | 0% | $14,182,016 |
| G88 | Golden Mile Res Ltd | 0.022 | 0% | $5,795,509 |
| EPM | Eclipse Metals | 0.014 | 0% | $28,392,837 |
| WC8 | Wildcat Resources | 0.03 | 0% | $19,860,682 |
| THR | Thor Energy PLC | 0.005 | 0% | $7,380,564 |
| M2R | Miramar | 0.045 | 0% | $3,515,478 |
| XTC | Xantippe Res Ltd | 0.003 | 0% | $31,740,299 |
| LLI | Loyal Lithium Ltd | 0.32 | 0% | $19,036,800 |
| LRD | Lordresourceslimited | 0.235 | 0% | $8,514,548 |
| WMC | Wiluna Mining Corp | 0.205 | 0% | $74,238,031 |
| LIS | Lisenergylimited | 0.28 | 0% | $46,455,972 |
| KTA | Krakatoa Resources | 0.033 | 0% | $11,375,427 |
| TYX | Tyranna Res Ltd | 0.025 | 0% | $60,160,633 |
| FTL | Firetail Resources | 0.1 | 0% | $7,700,000 |
| IR1 | Irismetals | 1.16 | 0% | $74,506,800 |
| LNR | Lanthanein Resources | 0.018 | 0% | $20,188,360 |
| DAL | Dalaroometalsltd | 0.065 | 0% | $1,941,875 |
| TKM | Trek Metals Ltd | 0.068 | 0% | $24,748,266 |
| ENT | Enterprise Metals | 0.007 | 0% | $4,935,565 |
| FIN | FIN Resources Ltd | 0.015 | 0% | $8,918,030 |
| DTM | Dart Mining NL | 0.06 | 0% | $9,337,234 |
| NIS | Nickelsearch | 0.092 | 0% | $5,566,499 |
| XTC | Xantippe Res Ltd | 0.003 | 0% | $31,740,299 |
| LPM | Lithium Plus | 0.25 | 0% | $12,722,050 |
| EMC | Everest Metals Corp | 0.076 | 0% | $9,836,916 |
| LRD | Lordresourceslimited | 0.235 | 0% | $8,514,548 |
| RIO | Rio Tinto Limited | 112.11 | 0% | $41,639,322,724 |
| LTR | Liontown Resources | 2.73 | 0% | $6,023,765,694 |
| GLN | Galan Lithium Ltd | 1.065 | 0% | $328,399,483 |
| WES | Wesfarmers Limited | 51.9 | -1% | $59,364,503,658 |
| RDT | Red Dirt Metals Ltd | 0.46 | -1% | $206,974,983 |
| ESS | Essential Metals Ltd | 0.435 | -1% | $117,729,345 |
| RAS | Ragusa Minerals Ltd | 0.085 | -1% | $12,263,496 |
| GW1 | Greenwing Resources | 0.185 | -1% | $28,108,083 |
| NWM | Norwest Minerals | 0.0365 | -1% | $9,152,735 |
| NVA | Nova Minerals Ltd | 0.355 | -1% | $75,920,319 |
| LLO | Lion One Metals Ltd | 1.1775 | -2% | $14,468,356 |
| SGQ | St George Min Ltd | 0.045 | -2% | $38,663,485 |
| VMC | Venus Metals Cor Ltd | 0.195 | -3% | $35,615,737 |
| SCN | Scorpion Minerals | 0.07 | -3% | $24,890,846 |
| MM1 | Midasmineralsltd | 0.165 | -3% | $9,712,400 |
| KOB | Kobaresourceslimited | 0.165 | -3% | $17,920,833 |
| ZNC | Zenith Minerals Ltd | 0.155 | -3% | $56,272,967 |
| PAM | Pan Asia Metals | 0.275 | -4% | $44,205,093 |
| BMM | Balkanminingandmin | 0.22 | -4% | $10,987,563 |
| FBM | Future Battery | 0.11 | -4% | $49,202,190 |
| FBM | Future Battery | 0.11 | -4% | $49,202,190 |
| A11 | Atlantic Lithium | 0.5975 | -4% | $380,776,038 |
| AM7 | Arcadia Minerals | 0.2 | -5% | $9,806,557 |
| CAI | Calidus Resources | 0.2 | -5% | $92,305,676 |
| YAR | Yari Minerals Ltd | 0.02 | -5% | $10,129,514 |
| PL3 | Patagonia Lithium | 0.19 | -5% | $9,800,700 |
| TEM | Tempest Minerals | 0.018 | -5% | $9,629,611 |
| QPM | Queensland Pacific | 0.1275 | -6% | $235,756,969 |
| CMD | Cassius Mining Ltd | 0.017 | -6% | $7,352,872 |
| MTM | Mtmongerresources | 0.165 | -6% | $15,462,572 |
| ZEO | Zeotech Limited | 0.046 | -6% | $80,394,578 |
| OCN | Oceanalithiumlimited | 0.3 | -6% | $12,024,480 |
| AUN | Aurumin | 0.028 | -7% | $5,932,746 |
| EVR | Ev Resources Ltd | 0.013 | -7% | $13,103,777 |
| CY5 | Cygnus Metals Ltd | 0.25 | -7% | $50,523,537 |
| IMI | Infinitymining | 0.18 | -8% | $14,913,272 |
| MXR | Maximus Resources | 0.033 | -8% | $11,486,008 |
| 1MC | Morella Corporation | 0.009 | -10% | $60,985,804 |
| EFE | Eastern Resources | 0.0115 | -12% | $16,145,304 |
| RMX | Red Mount Min Ltd | 0.0035 | -13% | $9,087,404 |
| VSR | Voltaic Strategic | 0.025 | -14% | $8,911,706 |
The lithium sector ended the week on a more positive note with 54 companies making gains while another 61 companies were unchanged. Just 38 companies were in the red today.
WHO’S GOT NEWS OUT?
European Lithium (ASX:EUR)
European Lithium’s plan to build and operate a lithium hydroxide plant in Saudi Arabia is poised to take a key step forward with the company expecting to sign a binding joint venture with Obeikan Investments Group by the end of May.
The equal joint venture will develop and operate the hydroxide plant, which will use ore from the Wolfsberg project in Austria.
EUR’s plant is expected to reduce energy costs by over 80%, provide access to a much lower corporate tax rate (20%) and provide much more attractive financing options.
This will reduce operating costs and Capex for Wolfsberg.
Lightning Minerals (ASX:L1M)
Lightning Minerals plans to start a 12,500m drill program at its Dundas project in Western Australia.
The program will follow up a combination of recent priority targets identified through the mapping of outcropping pegmatites, geophysical interpretations and lithium-rubidium in soil anomalism identified in the southeastern corner of tenement E63/2001.
Aircore drilling will focus on further delineating the broad anomalism and generate hard rock targets for follow-up RC drilling, which will increase the likelihood of intersecting all spatial presentations of the target lithium-caesium-tantalum pegmatites.
Any pegmatite intersections discovered during AC drilling may be immediately followed up by RC and Diamond Drilling to test deeper fresh rock LCT targets.
Reedy Lagoon (ASX:RLC)
The company has staked an additional 158 lode claims covering 1,312ha that adjoin its Alkali Lake North lithium project in Nevada.
While the project remains prospective for lithium in brine, the new ground brings with it additional ground that is prospective for clay-hosted lithium – exploration of which is significantly quicker and less costly.
This is evidenced by Lithium America Corporation and Blackrock Silver Corporation making recent announcements about lithium enriched clay discoveries on the western side of Tonopah.
Quarterly Highlights
With quarterly reporting season upon us, here’s a highlight of the reports that caught our eye.
Burley Minerals (ASX:BUR)
During the March 2023 quarter, the company concluded the acquisition of the Chubb lithium project in Quebec, Canada, along with the Mt James and Dragon lithium projects in Western Australia’s central Gascoyne region.
Chubb – located within a world-class lithium province with projects held by Sayona Mining and Piedmont Lithium – has at least five parallel dykes extending along a strike of 560m and a corridor width of 240m.
Key historical intercepts include 12m at 1.57% Li2O from 108m and 11.8m at 1.28% Li2O.
Mt James and Dragon are prospective for lithium with outcropping pegmatites mapped.
A detailed mapping and rock-chip sampling programme is scheduled for June 2023.
Patriot Lithium (ASX:PAT)
During the quarter, Patriot identified spodumene at the Dove target within its Wickenburg project with subsequent mapping revealing that the Dove West and Dove East pegmatites can each be traced in outcrop for more than 400m.
The company also identified additional pegmatite outcrops near the Dove LCT pegmatites that justify follow-up exploration.
Soil and rock chip sampling have also been carried out with results expected in the coming weeks before the company proceeds with its planned maiden drill program.
Patriot has also secured seven highly prospective lithium land packages, increasing its Ontario portfolio to 1,169km2 of lithium prospective ground that is close to the high-growth lithium markets in North America.
Sultan Resources (ASX:SLZ)
Sultan has also increased its exposure to future facing metals with the acquisition of two lithium projects in Ontario, Canada.
Kember Lake is about 8km from Frontier Lithium’s projects where recent drilling intersected 398.25m of pegmatite averaging 1.88% Li2O.
While no exploration has been recorded over Kember Lake, mapping by the Geological Survey of Ontario has historically recorded the presence of pegmatitic granites which the company is investigating.
The other project, Ruddy, directly abuts ground held by Green Technology Metals on the northern extremity of the Allison Lake Batholith, a fertile intrusive responsible for the development of proximal fractionated pegmatites with potential to host lithium, caesium and tantalum mineralisation.
Ruddy has seen no exploration though previous study by the Ontario Geological Survey established the margins of the Allison Lake Batholith as an important new target for rare-element mineralisation.
