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Eye on Lithium: Deutsche Bank still bullish on lithium but says prices have probably peaked (for now)
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- Deutsche Bank bullish on lithium, reckons pricing will be normalised to $55kg by year end
- Critical Resources kicks off 20,000m of diamond drilling at Mavis Lake
- Atlantic flags new mineralised pegmatites at its Ewoyaa project in Ghana, West Africa
All your ASX lithium news for Thursday, January 12.
Deutsche Bank has released its Q123 lithium outlook and remains bullish on the battery metal despite “near-term disturbances and potential headwinds on demand.”
The Bank reckons prices may have peaked, and while they expect pricing to remain strong, they say prices will normalise in the year ahead.
“[We are] expecting a more ‘normalised’ pricing down to $55kg by year end,” research analysts Corinne Blanchard and David Begleiter said.
Market tightness is also expected to remain and the deficit to further increase over the coming years, driven by EV demand but also energy storage’s increasing needs.
In terms of companies in the sector, Deutsche Bank said it prefers companies with incremental and diversified volumes with best-in-class execution to de-risk profiles.
“In that view, we prefer SQM; 15% incremental volumes this year, focusing on Chile, China and Australia, and attractive shareholders return via dividends (-14% yield) and ALB, with further capacity in Chile, Australia and medium-term plans focusing on North America,” they said.
One of the banks I pay attention to on #lithium. @DeutscheBank pic.twitter.com/F6Av6GaOYv
— Joe Lowry (@globallithium) January 11, 2023
Here’s how ASX lithium stocks were tracking today:
| Code | Company | Price | % Today | Market Cap |
|---|---|---|---|---|
| NWM | Norwest Minerals | 0.07 | 56% | $9,994,832 |
| MQR | Marquee Resource Ltd | 0.046 | 28% | $11,779,470 |
| IMI | Infinitymining | 0.285 | 16% | $18,737,188 |
| WC8 | Wildcat Resources | 0.033 | 10% | $19,860,682 |
| XTC | Xantippe Res Ltd | 0.0055 | 10% | $51,460,174 |
| PAT | Patriot Lithium | 0.34 | 10% | $17,968,376 |
| ASN | Anson Resources Ltd | 0.23 | 10% | $247,433,534 |
| BNR | Bulletin Res Ltd | 0.12 | 9% | $32,185,021 |
| RAG | Ragnar Metals Ltd | 0.014 | 8% | $4,929,404 |
| AML | Aeon Metals Ltd. | 0.029 | 7% | $29,602,817 |
| 1MC | Morella Corporation | 0.015 | 7% | $85,380,126 |
| IPT | Impact Minerals | 0.0075 | 7% | $17,369,594 |
| EMS | Eastern Metals | 0.08 | 7% | $2,929,831 |
| SRI | Sipa Resources Ltd | 0.033 | 6% | $7,036,563 |
| QXR | Qx Resources Limited | 0.052 | 6% | $43,946,254 |
| PLL | Piedmont Lithium Inc | 0.83 | 6% | $327,213,434 |
| AOU | Auroch Minerals Ltd | 0.056 | 6% | $22,675,792 |
| TKM | Trek Metals Ltd | 0.079 | 5% | $27,295,881 |
| INR | Ioneer Ltd | 0.4725 | 5% | $944,252,220 |
| ZEO | Zeotech Limited | 0.042 | 5% | $65,628,227 |
| LNR | Lanthanein Resources | 0.022 | 5% | $20,613,087 |
| LRD | Lordresourceslimited | 0.225 | 5% | $7,156,194 |
| QPM | Queensland Pacific | 0.115 | 5% | $192,098,271 |
| LLI | Loyal Lithium Ltd | 0.365 | 4% | $18,371,500 |
| ALY | Alchemy Resource Ltd | 0.025 | 4% | $28,273,830 |
| LTR | Liontown Resources | 1.56 | 4% | $3,294,653,025 |
| LEL | Lithenergy | 0.81 | 4% | $46,917,000 |
| TEM | Tempest Minerals | 0.028 | 4% | $13,628,687 |
| KGD | Kula Gold Limited | 0.028 | 4% | $9,752,722 |
| MMC | Mitremining | 0.29 | 4% | $7,583,828 |
| RGL | Riversgold | 0.029 | 4% | $26,473,096 |
| PLS | Pilbara Min Ltd | 4.115 | 3% | $11,931,918,570 |
| FRS | Forrestaniaresources | 0.16 | 3% | $9,438,152 |
| LKE | Lake Resources | 0.865 | 3% | $1,169,003,259 |
| WML | Woomera Mining Ltd | 0.0175 | 3% | $16,254,741 |
| PNN | Power Minerals Ltd | 0.555 | 3% | $39,012,204 |
| EMC | Everest Metals Corp | 0.087 | 2% | $9,046,814 |
| A11 | Atlantic Lithium | 0.67 | 2% | $396,760,787 |
| KTA | Krakatoa Resources | 0.045 | 2% | $15,167,236 |
| EMH | European Metals Hldg | 0.69 | 2% | $84,939,647 |
| PGD | Peregrine Gold | 0.46 | 2% | $17,438,350 |
| AM7 | Arcadia Minerals | 0.235 | 2% | $10,740,515 |
| INF | Infinity Lithium | 0.1225 | 2% | $55,511,051 |
| MLS | Metals Australia | 0.053 | 2% | $31,565,882 |
| LLL | Leolithiumlimited | 0.56 | 2% | $542,661,302 |
| AKE | Allkem Limited | 12.68 | 2% | $7,951,596,332 |
| IGO | IGO Limited | 14.865 | 2% | $11,078,828,104 |
| TUL | Tulla Resources | 0.34 | 1% | $71,304,231 |
| LIS | Lisenergylimited | 0.37 | 1% | $60,558,678 |
| RIO | Rio Tinto Limited | 121.04 | 1% | $44,330,640,276 |
| STM | Sunstone Metals Ltd | 0.0385 | 1% | $99,576,964 |
| WES | Wesfarmers Limited | 47.985 | 1% | $53,751,241,135 |
| MIN | Mineral Resources. | 88.99 | 1% | $16,687,381,779 |
| CXO | Core Lithium | 1.1875 | 1% | $2,170,089,313 |
| ESS | Essential Metals Ltd | 0.49 | 1% | $129,527,347 |
| GLN | Galan Lithium Ltd | 1.18 | 0% | $358,968,851 |
| ADV | Ardiden Ltd | 0.008 | 0% | $21,506,683 |
| AGY | Argosy Minerals Ltd | 0.665 | 0% | $933,930,986 |
| AVZ | AVZ Minerals Ltd | 0.78 | 0% | $2,752,409,203 |
| LIT | Lithium Australia | 0.051 | 0% | $62,280,775 |
| LPD | Lepidico Ltd | 0.016 | 0% | $122,204,340 |
| LPI | Lithium Pwr Int Ltd | 0.47 | 0% | $295,675,853 |
| RLC | Reedy Lagoon Corp. | 0.01 | 0% | $5,667,196 |
| TON | Triton Min Ltd | 0.037 | 0% | $51,163,015 |
| GL1 | Globallith | 2.19 | 0% | $466,849,431 |
| BMM | Balkanminingandmin | 0.32 | 0% | $14,327,044 |
| NMT | Neometals Ltd | 0.92 | 0% | $508,521,882 |
| PAM | Pan Asia Metals | 0.385 | 0% | $56,539,402 |
| AX8 | Accelerate Resources | 0.024 | 0% | $9,062,442 |
| BYH | Bryah Resources Ltd | 0.026 | 0% | $7,312,590 |
| DTM | Dart Mining NL | 0.062 | 0% | $9,648,475 |
| FG1 | Flynngold | 0.099 | 0% | $7,754,030 |
| LRV | Larvottoresources | 0.16 | 0% | $10,760,756 |
| CTN | Catalina Resources | 0.008 | 0% | $9,907,895 |
| TMB | Tambourahmetals | 0.11 | 0% | $4,531,186 |
| WCN | White Cliff Min Ltd | 0.013 | 0% | $9,792,707 |
| AZL | Arizona Lithium Ltd | 0.068 | 0% | $166,090,315 |
| LRS | Latin Resources Ltd | 0.12 | 0% | $262,642,104 |
| SCN | Scorpion Minerals | 0.07 | 0% | $24,199,433 |
| AZI | Altamin Limited | 0.078 | 0% | $30,553,907 |
| ENT | Enterprise Metals | 0.009 | 0% | $6,345,726 |
| KAI | Kairos Minerals Ltd | 0.023 | 0% | $45,174,150 |
| AVW | Avira Resources Ltd | 0.003 | 0% | $6,401,370 |
| NVA | Nova Minerals Ltd | 0.69 | 0% | $144,937,350 |
| RMX | Red Mount Min Ltd | 0.005 | 0% | $9,941,744 |
| CAI | Calidus Resources | 0.36 | 0% | $157,655,414 |
| EFE | Eastern Resources | 0.019 | 0% | $21,959,280 |
| SRZ | Stellar Resources | 0.013 | 0% | $13,060,202 |
| LSR | Lodestar Minerals | 0.005 | 0% | $8,692,187 |
| AOA | Ausmon Resorces | 0.0065 | 0% | $5,572,381 |
| VKA | Viking Mines Ltd | 0.008 | 0% | $8,202,067 |
| ZNC | Zenith Minerals Ltd | 0.26 | 0% | $91,341,790 |
| G88 | Golden Mile Res Ltd | 0.021 | 0% | $4,296,385 |
| EPM | Eclipse Metals | 0.024 | 0% | $48,582,164 |
| EVR | Ev Resources Ltd | 0.015 | 0% | $13,934,761 |
| CZL | Cons Zinc Ltd | 0.017 | 0% | $8,200,083 |
| MXR | Maximus Resources | 0.043 | 0% | $13,719,398 |
| DRE | Dreadnought Resources Ltd | 0.096 | 0% | $295,636,309 |
| MM1 | Midasmineralsltd | 0.2 | 0% | $11,426,353 |
| M2R | Miramar | 0.08 | 0% | $5,654,539 |
| WMC | Wiluna Mining Corp | 0.205 | 0% | $74,238,031 |
| GW1 | Greenwing Resources | 0.28 | 0% | $35,347,391 |
| TYX | Tyranna Res Ltd | 0.024 | 0% | $57,730,208 |
| DAF | Discovery Alaska Ltd | 0.029 | 0% | $6,502,806 |
| IR1 | Irismetals | 1.16 | 0% | $72,766,800 |
| SGQ | St George Min Ltd | 0.071 | 0% | $59,262,999 |
| WR1 | Winsome Resources | 1.84 | -1% | $257,505,239 |
| GT1 | Greentechnology | 0.92 | -1% | $176,433,014 |
| SYA | Sayona Mining Ltd | 0.2325 | -1% | $2,041,149,372 |
| CY5 | Cygnus Gold Limited | 0.445 | -1% | $82,743,395 |
| VUL | Vulcan Energy | 7.02 | -1% | $1,018,390,637 |
| MNS | Magnis Energy Tech | 0.395 | -1% | $388,132,593 |
| EUR | European Lithium Ltd | 0.078 | -1% | $114,489,895 |
| MTM | Mtmongerresources | 0.076 | -1% | $4,390,865 |
| AUN | Aurumin | 0.062 | -2% | $11,199,062 |
| JRL | Jindalee Resources | 1.85 | -2% | $107,872,456 |
| RAS | Ragusa Minerals Ltd | 0.12 | -2% | $17,468,351 |
| PSC | Prospect Res Ltd | 0.115 | -2% | $54,315,487 |
| CRR | Critical Resources | 0.045 | -2% | $73,155,300 |
| RDT | Red Dirt Metals Ltd | 0.45 | -2% | $191,643,279 |
| OCN | Oceanalithiumlimited | 0.44 | -2% | $16,386,300 |
| MRR | Minrex Resources Ltd | 0.04 | -2% | $44,479,568 |
| AS2 | Askarimetalslimited | 0.65 | -3% | $33,057,212 |
| LLO | Lion One Metals Ltd | 1.105 | -3% | $13,186,732 |
| VMC | Venus Metals Cor Ltd | 0.125 | -4% | $23,150,229 |
| VSR | Voltaic Strategic | 0.025 | -4% | $7,967,197 |
| AAJ | Aruma Resources Ltd | 0.062 | -5% | $10,202,498 |
| A8G | Australasian Metals | 0.2 | -5% | $8,645,804 |
| CMD | Cassius Mining Ltd | 0.02 | -5% | $8,578,351 |
| ARN | Aldoro Resources | 0.23 | -6% | $27,663,518 |
| GSM | Golden State Mining | 0.046 | -6% | $5,733,696 |
| CHR | Charger Metals | 0.45 | -8% | $21,420,040 |
| DAL | Dalaroometalsltd | 0.095 | -10% | $3,136,875 |
| KZR | Kalamazoo Resources | 0.21 | -11% | $34,972,553 |
| TKL | Traka Resources | 0.007 | -13% | $5,782,196 |
| THR | Thor Mining PLC | 0.006 | -14% | $10,187,190 |
| FTL | Firetail Resources | 0.14 | -15% | $10,725,000 |
A total of 55 stocks were in the green, 51 were flat and 31 were red.
Who has news out today?
The explorer has kicked off 20,000 meters of diamond drilling at its Mavis Lake project in Canada to define more lithium mineralisation at the Mavis Lake Main Zone.
The program is using two diamond drill rigs, with the first focused on extension drilling of the Main Zone, and the second rig to be utilised for both extension drilling together with testing multiple mapped, outcropping spodumene-bearing pegmatites located within the vicinity of the Mavis Lake Main Zone.
“Following the success of the 2022 drilling program and the exceptional results we have delivered from Mavis Lake, including some of the highest grading assay results released in 2022, it is exciting to have commenced another significant drilling campaign in 2023,” MD Alex Cheeseman said.
“Our actions and efforts to invest in large-scale drilling, reflects our focus and commitment to advancing the Mavis Lake Lithium Project.
“We have extension drilling underway, drill-ready targets surrounding the Main Zone and assays from 29 drill holes pending from our 2022 program.”
Currently assays are pending for core from 29 drill holes from last year’s program.
Atlantic says assay results have confirmed new mineralised pegmatites at the Grasscutter North, Kaampakrom North and Assan targets, outside the currently defined 30.1Mt at 1.26% Li2O Mineral Resource Estimate at its Ewoyaa project in Ghana, West Africa.
Multiple high-grade drill intersections have been reported, including highlights of 36m at 1.23% Li2O from 42m and 22.2m at 1.62% Li2O from 73.3m.
“We have now reported all assay results for the approximate 47,000m drilling programme, with a Resource upgrade targeted for Q1 2023 and a DFS targeted for completion mid-2023,” interim CEO Lennard Kolff said.
“With the Pre-Feasibility Study delivered, the Mining Licence application submitted, the FEED engineering contract awarded and the funding agreement with our partner Piedmont Lithium (ASX:PLL) in place, we feel the company is ideally positioned to benefit from the ongoing lithium demand expected over the coming years.”
Drilling has confirmed lithium grade, aquifer thickness and brine density at the company’s Salta project in Argentina.
Assay results from first hole of mineral resource definition drilling returned lithium content in brines averaging 197ppm Li from surface to ~300m depth in drillhole PM22-IN-01 at the Incahuasi salar.
The drill hole also included a 280m interval (from ~30m to 310m depth), containing brine with visual medium-to-high drainable porosity “with the potential to host significant quantities of lithium brine,” PNN says.
The second drillhole is now underway, and the company then plans to complete a maiden JORC 2012 Mineral Resource estimate at Incahuasi in Q1 CY23 (subject to results).
Burley is in the process of acquiring the Chubb lithium project in Quebec, Canada. Dahrouge, a geological consulting firm, have now mobilised to Chubb in order to manage the pending interface between the Canadian drilling contractors and the Australian geological and modelling teams, for the effective execution of the Phase 1 drilling program – which is expected to kick off in February.
The Phase 1 program for up to 5,000 metres of NG diamond core, is designed to verify, extend and confirm the extent, depth and orientation of the spodumene-bearing lithium pegmatites logged and drilled in the central area of the 35 Mineral Claims to be acquired in the Chubb Lithium acquisition deal.
“The general meeting of shareholders on the 19 January 2023 paves the way for completion of the strategic acquisition of the Chubb Lithium Project in the world-class lithium province of Quebec by 31 January 2023, with the commencement of drilling to follow thereafter,” MD Wayne Richards said.
CRR, A11, PNN and BUR share prices today:
At Stockhead we tell it like it is. While Burley Minerals is a Stockhead advertiser, it did not sponsor this article.
