Eye on Lithium: ‘EV sales have appeared inelastic’ to high lithium prices, SFA Oxford analysts say
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- SFA (Oxford) analysts say lithium prices will reach a floor in 2024
- As it stands, “EV sales appear inelastic to battery metal prices”
- Lithium Energy raises $15m in heavily oversubscribed placement to accelerate Solaroz drilling
All your lithium news Thursday, September 15.
The lithium market is forecast to move to mounting deficits from 2023 onwards, but supply from ‘probable’ and ‘low-risk possible’ projects could potentially keep the market balanced through to 2025, according to a recent presentation by SFA (Oxford) and Sibanye-Stillwater.
Analysts from SFA (Oxford) noted while prices may have peaked, they remain at extremely high levels for both lithium carbonate and lithium hydroxide and are expected to reach a floor in 2024, before rising again to incentivise higher-risk projects.
The lithium market (crucial for electric vehicles) is forecast to move to mounting deficits from next year onwards, but supply from ‘probable’ and ‘low-risk possible’ projects could keep the market balanced through to 2025. – SFA (Oxford)
Battery recycling growing fast too.
— Nick Hedley (@nickhedley) September 14, 2022
“BEV sales in China doubled in H1 2022, capturing 61% of global sales over the period and almost all of the top 15 EV markets registered positive year on year growth in sales despite declining overall vehicle sales,” the analysts noted.
“So far in 2022, EV sales have appeared inelastic to battery metal prices which could be due to a number of factors including strong demand pull, OEMS not passing on rising production costs, boost in EV demand as a result of up pent-up savings post COVID, and OEMS prioritising EV production during chip shortages.”
Here’s how ASX lithium stocks are tracking:
| CODE | COMPANY | PRICE | % TODAY | % WEEK | % MONTH | MARKET CAP |
|---|---|---|---|---|---|---|
| AOU | Auroch Minerals Ltd | 0.073 | 26% | 18% | 6% | $21,524,484 |
| IMI | Infinitymining | 0.25 | 22% | 25% | 67% | $11,787,500 |
| KAI | Kairos Minerals Ltd | 0.046 | 21% | 64% | 44% | $74,635,553 |
| WML | Woomera Mining Ltd | 0.018 | 16% | 13% | 6% | $10,645,913 |
| GL1 | Globallith | 2.85 | 16% | 51% | 52% | $390,397,710 |
| LRS | Latin Resources Ltd | 0.13 | 13% | 18% | 18% | $224,605,770 |
| LEL | Lithenergy | 1.35 | 13% | 41% | 21% | $54,180,000 |
| AOA | Ausmon Resorces | 0.009 | 13% | 20% | 64% | $6,858,315 |
| FTL | Firetail Resources | 0.27 | 13% | 15% | 6% | $14,827,800 |
| SRI | Sipa Resources Ltd | 0.046 | 12% | -2% | 7% | $8,406,017 |
| IR1 | Irismetals | 2.17 | 12% | 42% | 244% | $118,392,150 |
| WR1 | Winsome Resources | 0.365 | 11% | 35% | 24% | $44,587,618 |
| EVR | Ev Resources Ltd | 0.033 | 10% | 18% | 3% | $27,779,522 |
| ESS | Essential Metals Ltd | 0.565 | 10% | 15% | 4% | $127,453,454 |
| LLL | Leolithiumlimited | 0.795 | 10% | 36% | 57% | $715,326,261 |
| DRE | Dreadnought Resources Ltd | 0.12 | 9% | 4% | 29% | $334,513,691 |
| BMM | Balkanminingandmin | 0.305 | 9% | 65% | 54% | $9,170,000 |
| M2R | Miramar | 0.125 | 9% | 0% | 26% | $7,381,466 |
| GW1 | Greenwing Resources | 0.315 | 9% | 15% | 9% | $35,741,731 |
| LSR | Lodestar Minerals | 0.0065 | 8% | -7% | -19% | $10,430,624 |
| WCN | White Cliff Min Ltd | 0.027 | 8% | 13% | 93% | $18,690,084 |
| MMG | Monger Gold Ltd | 0.55 | 8% | 38% | 90% | $20,420,400 |
| CRR | Critical Resources | 0.084 | 8% | 95% | 45% | $116,065,189 |
| AZL | Arizona Lithium Ltd | 0.1 | 8% | 22% | -5% | $224,123,077 |
| LNR | Lanthanein Resources | 0.058 | 7% | 14% | 100% | $51,992,581 |
| TMB | Tambourahmetals | 0.155 | 7% | 7% | -14% | $5,972,927 |
| EFE | Eastern Resources | 0.032 | 7% | 19% | -6% | $30,201,921 |
| ADV | Ardiden Ltd | 0.0085 | 6% | 6% | -6% | $21,346,683 |
| AGY | Argosy Minerals Ltd | 0.56 | 6% | 26% | 38% | $724,525,445 |
| OCN | Oceanalithiumlimited | 0.75 | 6% | 27% | 46% | $23,802,750 |
| 1MC | Morella Corporation | 0.0295 | 5% | 13% | 18% | $161,438,082 |
| EUR | European Lithium Ltd | 0.099 | 5% | 22% | 13% | $131,622,482 |
| QXR | Qx Resources Limited | 0.0315 | 5% | 13% | -19% | $25,780,870 |
| ZNC | Zenith Minerals Ltd | 0.315 | 5% | 2% | 5% | $103,428,684 |
| GLN | Galan Lithium Ltd | 1.5 | 5% | 22% | 9% | $435,534,930 |
| ALY | Alchemy Resource Ltd | 0.022 | 5% | 0% | 22% | $20,014,595 |
| LRV | Larvottoresources | 0.225 | 5% | 7% | -12% | $8,929,488 |
| ZEO | Zeotech Limited | 0.045 | 5% | -10% | -24% | $67,162,365 |
| PLS | Pilbara Min Ltd | 4.765 | 4% | 21% | 53% | $13,699,934,233 |
| PAM | Pan Asia Metals | 0.43 | 4% | -2% | -8% | $30,676,900 |
| GT1 | Greentechnology | 0.86 | 4% | 20% | 17% | $158,312,866 |
| AM7 | Arcadia Minerals | 0.3 | 3% | 7% | 107% | $13,542,389 |
| BNR | Bulletin Res Ltd | 0.15 | 3% | 15% | -6% | $42,425,710 |
| AKE | Allkem Limited | 15.97 | 3% | 13% | 29% | $9,883,700,333 |
| INF | Infinity Lithium | 0.185 | 3% | -8% | 19% | $74,882,352 |
| MQR | Marquee Resource Ltd | 0.074 | 3% | 10% | -20% | $22,724,466 |
| RGL | Riversgold | 0.037 | 3% | 6% | -5% | $27,906,838 |
| LTR | Liontown Resources | 1.75 | 3% | 1% | 3% | $3,744,922,272 |
| JRL | Jindalee Resources | 2.75 | 3% | 13% | -5% | $153,775,629 |
| KTA | Krakatoa Resources | 0.061 | 3% | 5% | -10% | $20,510,240 |
| PNN | Power Minerals Ltd | 0.735 | 2% | 37% | 31% | $44,337,678 |
| EMH | European Metals Hldg | 0.86 | 2% | 19% | -9% | $100,879,664 |
| TUL | Tulla Resources | 0.505 | 2% | -2% | -5% | $79,307,352 |
| LRD | Lordresourceslimited | 0.265 | 2% | 36% | 15% | $8,654,001 |
| TYX | Tyranna Res Ltd | 0.054 | 2% | 32% | 50% | $124,860,615 |
| MRR | Minrex Resources Ltd | 0.055 | 2% | 12% | -13% | $58,130,444 |
| RAS | Ragusa Minerals Ltd | 0.275 | 2% | 20% | 96% | $34,733,898 |
| VUL | Vulcan Energy | 8.26 | 2% | 3% | -13% | $1,162,449,291 |
| AML | Aeon Metals Ltd. | 0.03 | 2% | 0% | 0% | $32,256,208 |
| A8G | Australasian Metals | 0.3 | 2% | 11% | 7% | $12,145,296 |
| IGO | IGO Limited | 14.77 | 1% | 15% | 23% | $11,025,819,357 |
| PLL | Piedmont Lithium Inc | 0.94 | 1% | 9% | 19% | $490,640,844 |
| LIT | Lithium Australia | 0.0605 | 1% | -1% | -29% | $73,178,593 |
| RDT | Red Dirt Metals Ltd | 0.68 | 1% | 14% | 51% | $205,574,238 |
| RIO | Rio Tinto Limited | 95.3 | 0% | 7% | 0% | $35,202,433,574 |
| MIN | Mineral Resources. | 71.74 | 0% | 21% | 21% | $13,532,698,663 |
| ASN | Anson Resources Ltd | 0.425 | 0% | 44% | 183% | $437,963,146 |
| AVZ | AVZ Minerals Ltd | 0.78 | 0% | 0% | 0% | $2,752,409,203 |
| QPM | Queensland Pacific | 0.17 | 0% | 17% | 17% | $265,814,232 |
| PSC | Prospect Res Ltd | 0.096 | 0% | 2% | -20% | $44,376,908 |
| RLC | Reedy Lagoon Corp. | 0.016 | 0% | 7% | -6% | $8,918,831 |
| TKL | Traka Resources | 0.007 | 0% | 0% | 0% | $4,821,422 |
| CHR | Charger Metals | 0.605 | 0% | 30% | 12% | $19,726,651 |
| AAJ | Aruma Resources Ltd | 0.067 | 0% | -4% | -15% | $10,516,421 |
| BYH | Bryah Resources Ltd | 0.027 | 0% | 0% | -8% | $7,539,844 |
| EMS | Eastern Metals | 0.125 | 0% | 0% | -24% | $4,832,031 |
| FG1 | Flynngold | 0.105 | 0% | 11% | 18% | $6,726,410 |
| FRS | Forrestaniaresources | 0.25 | 0% | 32% | 52% | $8,340,326 |
| GSM | Golden State Mining | 0.048 | 0% | -4% | -20% | $5,616,682 |
| MMC | Mitremining | 0.18 | 0% | 44% | 57% | $4,875,318 |
| SHH | Shree Minerals Ltd | 0.009 | 0% | 13% | -10% | $11,146,382 |
| TEM | Tempest Minerals | 0.039 | 0% | 0% | -11% | $19,685,881 |
| TSC | Twenty Seven Co. Ltd | 0.002 | 0% | 0% | -5% | $5,321,628 |
| KGD | Kula Gold Limited | 0.02 | 0% | -22% | -26% | $5,379,391 |
| KZR | Kalamazoo Resources | 0.255 | 0% | 11% | -6% | $37,560,065 |
| MTM | Mtmongerresources | 0.155 | 0% | 11% | 29% | $5,814,055 |
| ENT | Enterprise Metals | 0.01 | 0% | -9% | -9% | $6,529,807 |
| AVW | Avira Resources Ltd | 0.004 | 0% | 0% | 14% | $8,475,160 |
| NVA | Nova Minerals Ltd | 0.845 | 0% | -6% | 2% | $155,193,777 |
| RMX | Red Mount Min Ltd | 0.006 | 0% | -8% | -14% | $9,854,183 |
| SRZ | Stellar Resources | 0.0145 | 0% | -3% | -19% | $13,995,366 |
| VKA | Viking Mines Ltd | 0.008 | 0% | 0% | 0% | $8,202,067 |
| IPT | Impact Minerals | 0.007 | 0% | -7% | -13% | $17,369,594 |
| VMC | Venus Metals Cor Ltd | 0.16 | 0% | 0% | -9% | $25,612,589 |
| G88 | Golden Mile Res Ltd | 0.033 | 0% | -3% | 10% | $6,751,462 |
| EPM | Eclipse Metals | 0.023 | 0% | 5% | -4% | $46,557,908 |
| MNS | Magnis Energy Tech | 0.48 | 0% | -3% | 4% | $465,759,112 |
| THR | Thor Mining PLC | 0.011 | 0% | 10% | 16% | $12,090,797 |
| CZL | Cons Zinc Ltd | 0.024 | 0% | 9% | -4% | $9,296,588 |
| MXR | Maximus Resources | 0.05 | 0% | -7% | -21% | $15,945,288 |
| MM1 | Midasmineralsltd | 0.2 | 0% | 11% | -20% | $11,426,353 |
| XTC | Xantippe Res Ltd | 0.009 | 0% | 0% | -10% | $73,307,069 |
| WMC | Wiluna Mining Corp | 0.205 | 0% | 0% | 0% | $74,238,031 |
| AUN | Aurumin | 0.11 | 0% | 10% | -33% | $13,783,785 |
| DAF | Discovery Alaska Ltd | 0.079 | 0% | -1% | 58% | $17,714,541 |
| DAL | Dalaroometalsltd | 0.115 | 0% | 10% | 16% | $3,435,625 |
| CY5 | Cygnus Gold Limited | 0.27 | 0% | -10% | 8% | $39,740,035 |
| WES | Wesfarmers Limited | 46.19 | -1% | 1% | -2% | $52,666,879,241 |
| CAI | Calidus Resources | 0.585 | -1% | 4% | -13% | $258,291,206 |
| CXO | Core Lithium | 1.58 | -1% | 4% | 7% | $2,770,826,593 |
| STM | Sunstone Metals Ltd | 0.0415 | -1% | -3% | -14% | $109,050,750 |
| TKM | Trek Metals Ltd | 0.073 | -1% | 14% | 3% | $22,985,151 |
| INR | Ioneer Ltd | 0.68 | -1% | 7% | -3% | $1,447,712,512 |
| MLS | Metals Australia | 0.052 | -2% | 6% | -28% | $32,172,918 |
| SYA | Sayona Mining Ltd | 0.3325 | -2% | 21% | 21% | $2,823,470,224 |
| SCN | Scorpion Minerals | 0.08 | -2% | 1% | 21% | $27,210,158 |
| LIS | Lisenergylimited | 0.575 | -3% | 0% | -21% | $97,889,370 |
| RAG | Ragnar Metals Ltd | 0.038 | -3% | 6% | -21% | $14,788,211 |
| LKE | Lake Resources | 1.03 | -3% | -15% | -25% | $1,473,372,132 |
| WC8 | Wildcat Resources | 0.034 | -3% | 13% | 13% | $22,584,545 |
| PGD | Peregrine Gold | 0.64 | -3% | -6% | -29% | $25,556,227 |
| LPD | Lepidico Ltd | 0.029 | -3% | -3% | -3% | $195,215,737 |
| AZI | Altamin Limited | 0.085 | -3% | -11% | -4% | $34,471,074 |
| AS2 | Askarimetalslimited | 0.4 | -4% | 18% | -6% | $18,703,747 |
| TON | Triton Min Ltd | 0.026 | -4% | -7% | -4% | $33,987,173 |
| ARN | Aldoro Resources | 0.235 | -4% | -13% | -15% | $24,398,893 |
| LPI | Lithium Pwr Int Ltd | 0.7 | -4% | 1% | 10% | $254,875,739 |
| DTM | Dart Mining NL | 0.1 | -5% | -5% | 20% | $14,202,317 |
| NMT | Neometals Ltd | 1.365 | -6% | -6% | 0% | $803,664,169 |
| NWM | Norwest Minerals | 0.052 | -7% | -13% | 24% | $10,114,014 |
| AX8 | Accelerate Resources | 0.035 | -8% | 0% | -5% | $10,277,438 |
64 ASX lithium companies finished in the green, 43 fell flat and 24 ended the day in the red.
Who’s got news out?
LITHIUM ENERGY (ASX:LEL)
Lithium Energy has raised $15m in a heavily oversubscribed placement to accelerate drilling at the Solaroz Lithium Brine Project in Argentina as well as fast-track development at the Burke Graphite Project in Queensland.
Solaroz is in the world renowned Lithium Triangle in Argentina and is surrounded by lithium majors Allkem (ASX:AKE) and Lithium Americas Corporation.
A high impact drilling program is underway, with the first hole in progress and being drilled adjacent to Allkem’s Olaroz Lithium Facility – around 10kms from its production bore field.
LEL hopes to validate the exploration target previously announced and establish a maiden JORC mineral resource of lithium at Solaroz.
The additional funding raised will allow for the acceleration of the current 5,000m drilling programme and for the drilling of additional holes at Solaroz through the engagement of multiple drilling rigs.
AUROCH MINERALS (ASX:AOU)
An experienced Nevada-based team including geologists, land management, and legal counsel has been established to set up to drive the Nevada Lithium Project (NLP) forward.
The NLP comprises a large area that is considered highly prospective for large sedimentary-hosted lithium deposits across four prospect areas – Traction Prospect, San Antone Prospect, Heller Prospect and Lone Mountain Prospect.
It is close to the mining town of Tonopah in the mining-friendly counties of Nye and Esmeralda in the State of Nevada and is home to some very large sedimentary-hosted lithium deposits including Ioneer Resources’ (ASX:INR) Rhyolite Ridge Project and American Lithium Corporation’s (TSX.V: LI) (US OTC: LIACF) (Frankfurt: 5LA1) TLC Lithium Project.
The in-country team has completed a thorough review of historic data as well as detailed mapping of the key prospect areas, confirming the high prospectivity for significant sedimentary-hosted lithium mineralisation.
An initial 1,000m reverse-circulation (RC) drill program has been designed to selectively test stratigraphic targets at the NLP.
Permitting has kicked off and the approvals process is expected to be completed within four to six weeks.
FIRETAIL RESOURCES (ASX:FTL)
Firetail has received further endorsement for the Yalgoo Project’s potential to host significant lithium-caesium-tantalum (LCT) pegmatites, by the confirmation of a large-scale +25 kilometre extensive “Goldilocks Zone” in regional geological datasets.
The “Goldilocks Zone” encompasses and is supported by historic high-grade rock chip samples of up to 3.75% Li2O, and Firetail’s recent mapping and geochemical sampling that has identified fertile LCT pegmatites.
FTL says the “Goldilocks Zone” is known as a defined corridor in which LCT pegmatites exist. This zone is outboard of the granitic terrain and within Greenstone belts.
Research indicates that all economic spodumene deposits, globally, lie within this “Goldilocks Zone”.
“Multi-element geochemical data from rock chip sampling at the Yalgoo Project has provided an insight into the potential for LCT pegmatites, with several targets defined from this work,” executive chairman Brett Grosvenor says.
“Preparations to undertake our maiden drilling campaign is now well advanced.”
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