Eye on Lithium: Macquarie doesn't see 'material volume from new spodumene producers until CY23', ups lithium price target

Macquarie upgrades its quarterly average lithium price assumption by 2% to US$5,000/t
The brokers’ top two lithium picks remain unchanged – Pilbara Minerals and IGO
Encounter Resources expansive land position in the North Arunta province is attracting attention of several lithium focused parties

All your lithium news for Tuesday, August 23.

Aussie global financial group, Macquarie, has upgraded its lithium price outlook to reflect the current tight lithium market and buoyant spot lithium prices.

The bullish report titled ‘Australian lithium miners – Upgrading lithium price outlook’ says it maintains its preference for Australian based producers with Pilbara Minerals (ASX:PLS) and IGO (ASX:IGO) as its top two picks, offering strong production upside.

“PLS offers the greatest leverage to spodumene prices with the improved outlook driving a 40% lift in our price target to A$5.60,” the report authors write.

According to the report, domestic Chinese lithium carbonate prices continue to trade at material premiums to regional lithium carbonate prices, and the broker expects a price differential between regional prices and Chinese prices reflecting a 3-month lag, which will close in CY4.

“We do not see material volume from new spodumene producers until CY23,” the report authors write.

“We lift our peak price assumption by 2% to US$5,000/t (realised quarterly average) and upgrade annual prices by 55% for CY23 and 107%, 114% and 110% for CY24, CY25, and CY26 respectively.”

NOW READ: Pilbara Minerals lifted its gross margin by more than 1800% last year

Here’s how ASX lithium stocks were tracking today:

CODE	COMPANY	LAST	% MONTH	% WEEK	% TODAY	MARKET CAP
DAF	Discovery Alaska Ltd	8	8%	67%	67%	$17,490,306
RAS	Ragusa Minerals Ltd	29	29%	297%	45%	$36,290,409
LNR	Lanthanein Resources	3.8	4%	153%	36%	$37,550,197
IR1	Irismetals	83	83%	172%	29%	$51,188,850
AOA	Ausmon Resorces	0.7	1%	17%	27%	$5,143,736
OCN	Oceanalithiumlimited	68	68%	45%	24%	$19,947,375
SCN	Scorpion Minerals	8.1	8%	19%	23%	$25,882,833
M2R	Miramar	12	12%	14%	21%	$7,702,400
ASN	Anson Resources Ltd	19	19%	46%	19%	$205,582,467
FTL	Firetail Resources	29	29%	23%	14%	$18,225,838
IMI	Infinitymining	17	17%	31%	13%	$9,775,000
DRE	Dreadnought Resources Ltd	10.5	11%	106%	13%	$334,513,691
RDT	Red Dirt Metals Ltd	50	50%	43%	12%	$149,231,669
MMG	Monger Gold Ltd	34	34%	48%	11%	$15,015,000
MTM	Mtmongerresources	15	15%	36%	11%	$6,189,155
MMC	Mitremining	12.75	13%	2%	11%	$3,114,787
QPM	Queensland Pacific	15.5	16%	11%	11%	$250,178,101
G88	Golden Mile Res Ltd	3.3	3%	18%	10%	$6,519,444
NWM	Norwest Minerals	4.6	5%	35%	10%	$8,307,940
AM7	Arcadia Minerals	19.5	20%	22%	8%	$9,106,089
WC8	Wildcat Resources	3	3%	25%	7%	$18,712,909
A8G	Australasian Metals	30.5	31%	33%	7%	$12,557,001
AML	Aeon Metals Ltd.	3.1	3%	3%	7%	$33,896,354
IPT	Impact Minerals	0.85	1%	6%	6%	$22,332,335
MM1	Midasmineralsltd	25.5	26%	34%	6%	$14,854,259
FG1	Flynngold	10	10%	0%	5%	$7,046,716
GSM	Golden State Mining	6.3	6%	26%	5%	$7,254,881
SRI	Sipa Resources Ltd	4.5	5%	18%	5%	$9,226,116
RAG	Ragnar Metals Ltd	4.8	5%	26%	4%	$17,821,690
LRV	Larvottoresources	26	26%	27%	4%	$10,798,450
TON	Triton Min Ltd	2.9	3%	26%	4%	$36,504,741
EMS	Eastern Metals	15	15%	11%	3%	$5,991,719
ZEO	Zeotech Limited	6.1	6%	13%	3%	$93,019,844
RIO	Rio Tinto Limited	9822	9822%	2%	3%	$36,449,720,053
VMC	Venus Metals Cor Ltd	17.5	18%	3%	3%	$28,013,770
MIN	Mineral Resources.	6259	6259%	34%	3%	$11,659,523,159
NVA	Nova Minerals Ltd	88	88%	17%	2%	$158,578,011
PLS	Pilbara Min Ltd	328	328%	31%	2%	$9,436,609,377
TKM	Trek Metals Ltd	7.7	8%	12%	1%	$23,916,982
AKE	Allkem Limited	1298.5	1299%	27%	1%	$7,970,726,075
MNS	Magnis Energy Tech	46	46%	39%	1%	$436,649,167
IGO	IGO Limited	1228	1228%	24%	0%	$9,178,085,894
AVZ	AVZ Minerals Ltd	78	78%	0%	0%	$2,752,409,203
SYA	Sayona Mining Ltd	28	28%	56%	0%	$2,282,165,378
PAM	Pan Asia Metals	47.5	48%	25%	0%	$35,851,317
AX8	Accelerate Resources	3.7	4%	12%	0%	$10,277,438
BYH	Bryah Resources Ltd	2.8	3%	-13%	0%	$8,098,351
WCN	White Cliff Min Ltd	1.2	1%	-11%	0%	$7,843,240
LRS	Latin Resources Ltd	11.5	12%	40%	0%	$233,838,630
AVW	Avira Resources Ltd	0.4	0%	14%	0%	$8,475,160
RMX	Red Mount Min Ltd	0.7	1%	0%	0%	$11,496,547
VKA	Viking Mines Ltd	0.8	1%	0%	0%	$8,202,067
CZL	Cons Zinc Ltd	2.2	2%	16%	0%	$8,521,872
AOU	Auroch Minerals Ltd	7	7%	11%	0%	$26,348,938
WMC	Wiluna Mining Corp	20.5	21%	0%	0%	$74,238,031
WES	Wesfarmers Limited	4775	4775%	0%	0%	$54,617,084,457
DAL	Dalaroometalsltd	9.8	10%	-11%	-1%	$2,927,750
CHR	Charger Metals	53.5	54%	11%	-2%	$17,593,759
ARN	Aldoro Resources	24.5	25%	69%	-2%	$25,394,766
MRR	Minrex Resources Ltd	5.7	6%	63%	-3%	$60,052,423
KAI	Kairos Minerals Ltd	2.8	3%	17%	-3%	$56,958,711
LTR	Liontown Resources	171	171%	43%	-4%	$3,689,790,545
EPM	Eclipse Metals	2.2	2%	10%	-4%	$42,264,781
EUR	European Lithium Ltd	8.5	9%	12%	-4%	$121,820,808
AZI	Altamin Limited	8.5	9%	-11%	-4%	$34,862,791
NMT	Neometals Ltd	135	135%	29%	-5%	$737,382,588
LEL	Lithenergy	101.5	102%	22%	-5%	$44,021,250
PSC	Prospect Res Ltd	10	10%	100%	-5%	$48,537,244
ZNC	Zenith Minerals Ltd	29.5	30%	-6%	-5%	$106,876,306
JRL	Jindalee Resources	275	275%	7%	-5%	$154,923,208
DTM	Dart Mining NL	7.6	8%	23%	-5%	$10,415,032
THR	Thor Mining PLC	0.95	1%	6%	-5%	$9,680,080
ADV	Ardiden Ltd	0.85	1%	6%	-6%	$22,680,851
TUL	Tulla Resources	50.5	51%	-6%	-6%	$83,312,773
RLC	Reedy Lagoon Corp.	1.5	2%	-21%	-6%	$8,361,404
FRS	Forrestaniaresources	15	15%	0%	-6%	$5,004,196
INR	Ioneer Ltd	67.5	68%	30%	-7%	$1,426,731,172
BMM	Balkanminingandmin	18.5	19%	-8%	-8%	$6,058,750
RGL	Riversgold	3.6	4%	29%	-8%	$28,532,028
LLL	Leolithiumlimited	49.5	50%	16%	-8%	$493,328,456
AGY	Argosy Minerals Ltd	37.5	38%	0%	-9%	$505,112,748
GL1	Globallith	178	178%	56%	-9%	$283,276,387
GW1	Greenwing Resources	26	26%	16%	-9%	$32,044,311
TMB	Tambourahmetals	15.5	16%	7%	-9%	$6,384,853
ENT	Enterprise Metals	1	1%	-9%	-9%	$6,529,807
KTA	Krakatoa Resources	6	6%	0%	-9%	$21,027,305
CAI	Calidus Resources	61.75	62%	-1%	-9%	$273,613,566
LPD	Lepidico Ltd	2.9	3%	-6%	-9%	$188,708,546
LPI	Lithium Pwr Int Ltd	58.75	59%	25%	-10%	$200,758,288
INF	Infinity Lithium	14	14%	4%	-10%	$60,176,895
AUN	Aurumin	14	14%	-10%	-10%	$16,287,690
SHH	Shree Minerals Ltd	0.9	1%	0%	-10%	$11,146,382
ALY	Alchemy Resource Ltd	1.8	2%	6%	-10%	$18,108,407
LIT	Lithium Australia	7.9	8%	10%	-10%	$81,797,337
TYX	Tyranna Res Ltd	3.5	4%	84%	-10%	$86,482,345
EFE	Eastern Resources	2.95	3%	9%	-11%	$30,947,273
TEM	Tempest Minerals	4	4%	-13%	-11%	$20,695,413
PLL	Piedmont Lithium Inc	82.5	83%	51%	-11%	$427,332,348
KGD	Kula Gold Limited	2.3	2%	-20%	-12%	$5,164,215
SRZ	Stellar Resources	1.5	2%	-6%	-12%	$12,589,539
EVR	Ev Resources Ltd	3	3%	3%	-12%	$27,779,522
STM	Sunstone Metals Ltd	4.4	4%	-12%	-12%	$114,243,642
LIS	Lisenergylimited	62	62%	-17%	-12%	$102,866,796
LSR	Lodestar Minerals	0.7	1%	8%	-13%	$12,169,061
CY5	Cygnus Gold Limited	21	21%	40%	-13%	$33,116,696
AAJ	Aruma Resources Ltd	6.9	7%	3%	-13%	$10,987,305
BNR	Bulletin Res Ltd	13.5	14%	13%	-13%	$39,499,799
EMH	European Metals Hldg	83	83%	11%	-13%	$90,375,113
GLN	Galan Lithium Ltd	124.5	125%	12%	-13%	$373,046,850
AS2	Askarimetalslimited	35.5	36%	45%	-13%	$15,323,552
GT1	Greentechnology	67	67%	-2%	-14%	$127,146,054
1MC	Morella Corporation	2.5	3%	47%	-14%	$147,581,564
VUL	Vulcan Energy	808	808%	13%	-14%	$1,171,049,409
TKL	Traka Resources	0.6	1%	9%	-14%	$4,821,422
WML	Woomera Mining Ltd	1.5	2%	0%	-14%	$10,302,496
KZR	Kalamazoo Resources	24	24%	9%	-14%	$34,120,678
PGD	Peregrine Gold	80	80%	82%	-15%	$31,923,849
MQR	Marquee Resource Ltd	7.9	8%	11%	-15%	$24,302,554
LRD	Lordresourceslimited	19.5	20%	-9%	-15%	$6,198,001
CXO	Core Lithium	135	135%	28%	-16%	$2,388,643,615
ESS	Essential Metals Ltd	44.5	45%	6%	-17%	$107,368,035
LKE	Lake Resources	121	121%	73%	-17%	$1,681,710,279
AZL	Arizona Lithium Ltd	8.7	9%	6%	-17%	$211,809,449
XTC	Xantippe Res Ltd	0.9	1%	13%	-18%	$73,131,612
MXR	Maximus Resources	4.9	5%	-2%	-18%	$16,902,006
QXR	Qx Resources Limited	3.1	3%	3%	-18%	$26,640,232
MLS	Metals Australia	5.5	6%	2%	-19%	$33,386,991
WR1	Winsome Resources	24	24%	26%	-20%	$32,427,359
PNN	Power Minerals Ltd	46	46%	-1%	-21%	$29,538,605
TSC	Twenty Seven Co. Ltd	0.3	0%	0%	-25%	$7,982,442
CRR	Critical Resources	4.7	5%	9%	-27%	$72,912,747

75 lithium companies finished in the red today, 15 fell flat, and 41 ended in the green.

Who has news?

ENCOUNTER RESOURCES (ASX:ENR)

ECT’s board have made the decision to undertake a strategic review of lithium potential at the Sandover Project in the Northern Territory following strong regional interest in the commodity.

MD Will Robinson says ENR has an expansive land position in the North Arunta province that is attracting the attention of several lithium focused parties.

“It’s impossible to ignore the significant lithium potential of Sandover,” he said.

“We are looking to identify and prioritise various prospects and to determine an appropriate path forward.

“This could mean Encounter continuing 100% or seeking a well credentialled, experienced lithium party to go forward with.”

The strategic review of the intrinsic lithium potential of Sandover will be completed in the coming months.

The Northern Territory Geological Survey (NTGS) interpret that the pegmatites in the region are lithium-caesium- tantalum, like the host pegmatites of the lithium deposits at Greenbushes in WA and the Finnis deposit in the Pine Creek pegmatite province in the NT.

METALICITY (ASX:MCT)

MCT has been granted the Mt Surprise Lithium Project (EPM 26052) in north Queensland where the company is currently targeting rock chip and soil sampling programs.

A historic rock chip sample returned 3.55% lithium, 125ppm tantalum, 0.25% caesium and 1.26% rubidium, highlighting the significant potential of the ground.

Field work will begin shortly in the aim to target new pegmatites and lithium mineralisation across the extensive land holding.

MCT says many unspecified dykes have been interpreted by the Geological Survey of Queensland that will be investigated for pegmatites as part of this field program.

St George Mining (ASX:SGQ)

A further three diamond holes have recently been completed at SGQ’s Paterson Project in the East Pilbara, testing priority structural targets for the potential to host large copper-gold systems.

However, while the company is planning further drilling at Paterson it is also ramping up field work at the Mt Alexander and Ajana projects.

SGQ’s executive chairman John Prineas says the company will continue field-mapping and rock chip sampling of the extensive pegmatite outcrops at Mt Alexander, which may be part of the same system that hosts the nearby major lithium discovery announced by Red Dirt Metals (ASX: RDT).