Eye on Lithium: Macquarie doesn’t see ‘material volume from new spodumene producers until CY23’, ups lithium price target
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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.”
75 lithium companies finished in the red today, 15 fell flat, and 41 ended in the green.
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.
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.
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).