• The lithium futures contango, if you know what that is, is continuing to provide market hopium
  • Meanwhile investment banker firm Morgan Stanley issues positive note on lithium… with caveat
  • ASX lithium gainers include: GL1, LRS, GT1, GLN 

 

What did we learn about this and that pertaining to lithium here and there on Wednesday, February 28? Let’s find out…

 

Lithium stocks on the local bourse are, for the most part, having a pretty fair old time of it today as we head towards another closing bell.

And this includes some big, BIG guns, too, such as lithium miners Pilbara Minerals (ASX:PLS) and IGO (ASX:IGO), which have both climbed 5% each.

Why? There are a coupla things to note. Firstly…

 

Contango fandango

Scaramouche, Scaramouche, will you do the contango?

The lithium futures contango, that is.

As noted by lithium analyst Juan Carlos Zuleta (yes, this columnist is a broken record here of late, but he’s a beaut and OG source for this particular, growing narrative) among others… The lithium futures contango continues to play out and continues to provide a struggling lithium market some hopium.

According to Investopedia, contango, by the way, means:

“A futures market occurrence marked by futures contract prices rising above spot prices. It means that traders and investors anticipate an increase in prices in the coming months. The opposite of contango is backwardation, when futures prices are lower than spot prices.”

And for the sake of being complete, Scaramouche is a word that means cowardly buffoon, taken from the French, which also means cowardly buffoon.

Around yesterday’s ASX close, Chinese lithium futures were trading around 1.2% higher. About three hours later, they were about 3.4% higher again and, according to Market Index data, 106,650 yuan a tonne and the highest level since January 3.

 

 

So that’s one reason. The other, which another prominent lithium expert – Joe “Mr Lithium” Lowry – says is ironic, is this…

 

Morgan Stanley flips positive… kinda

 

US multinational investment bank Morgan Stanley has released a bit of an eyebrow-raising positive take on the lithium market, especially given the tendency for investment banks (looking at you, too Goldman Sachs) to sink the boot into this sector over the past year or so.

Here’s some of what MS’s analysts had to impart, particularly regarding increasing supply chain disruptions in China, potentially providing a boost to lithium industry outside of the Asian superpower:

“We have learned that the Yichun government is requiring local lithium converters to: 1) Initiate self-inspection on environmental protection issues ahead of government inspections; 2) Track the direction of refining slags since late last year; and 3) Temporarily suspend transportation of refining slags across districts pending further classification of these refining slags.”

“Some local lithium producers in Yichun … have kept their operations suspended. The need for self-inspection may prolong these suspensions in the near term.

“Overall, we think the current supply disruptions and concerns will lift near-term market sentiment as lithium output in Yichun accounted for around 20% of China’s total lithium production and approximately 13% of global supply in 2023, according to SSM.”

“On the other hand, if the classification of refining slags is finalised, and no environmental protection-related issues are defined, we believe supply disruption will only be temporary.”

We’ll keep at least one eye on it.

 

ASX lithium form guide

Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop. (Note: figures accurate per ASX at 3pm.) 

Stocks missing from this list? Email [email protected]

CODE COMPANY TODAY WEEK 1 MONTH % 12 MONTH % PRICE MARKET CAP
ADV Ardiden Ltd -16% -13% -16% -55% 0.135 $10,002,801
AGY Argosy Minerals Ltd 4% 18% 43% -81% 0.13 $175,550,937
1MC Morella Corporation 0% 0% -13% -68% 0.0035 $21,625,798
AML Aeon Metals Ltd. 20% -14% -33% -74% 0.006 $5,482,003
ASN Anson Resources Ltd 2% 7% -6% -52% 0.091 $114,518,810
AVZ AVZ Minerals Ltd 0% 0% 0% 0% 0.78 $2,752,409,203
CXO Core Lithium -2% -2% 19% -76% 0.22 $480,810,497
EMH European Metals Hldg 3% 0% -3% -48% 0.31 $37,705,655
EUR European Lithium Ltd 0% 0% 2% 26% 0.086 $119,904,569
GLN Galan Lithium Ltd 14% 21% -26% -64% 0.4 $136,269,646
INF Infinity Lithium -6% -9% -19% -35% 0.072 $35,619,591
INR Ioneer Ltd 6% 14% 36% -61% 0.1425 $285,121,640
JLL Jindalee Lithium Ltd -8% -11% -22% -68% 0.785 $51,416,599
LIT Lithium Australia -4% -7% -7% -33% 0.027 $34,221,367
LKE Lake Resources 7% -2% 36% -79% 0.1225 $163,768,108
LPD Lepidico Ltd 0% 0% 0% -57% 0.006 $45,829,848
LPI Lithium Pwr Int Ltd 1% 0% -3% 66% 0.54 $342,683,100
LTR Liontown Resources 9% 7% 37% -4% 1.26 $2,798,852,044
MIN Mineral Resources. 4% 13% 13% -16% 66.905 $12,610,995,113
MLS Metals Australia 0% -10% -18% -46% 0.027 $16,848,977
AKE Allkem Limited 0% -100% -100% -100% 0 $6,304,350,967
PLL Piedmont Lithium Inc 12% -6% -18% -76% 0.2125 $73,303,615
PLS Pilbara Min Ltd 7% 17% 18% -1% 4.16 $11,676,735,627
QPM Queensland Pacific -3% -8% -12% -63% 0.036 $74,463,992
PSC Prospect Res Ltd -3% -8% -14% -65% 0.066 $31,506,573
RLC Reedy Lagoon Corp. 0% 25% 0% -35% 0.005 $3,097,704
SYA Sayona Mining Ltd 6% -30% 4% -82% 0.0415 $401,438,545
TKL Traka Resources 0% 0% -25% -73% 0.0015 $2,625,988
TON Triton Min Ltd 0% -11% -16% -52% 0.016 $24,982,283
VUL Vulcan Energy 9% 15% 13% -61% 2.41 $382,002,078
GL1 Globallith 15% 9% 7% -63% 0.57 $128,831,323
BMM Balkanminingandmin 4% 0% -18% -81% 0.074 $5,043,876
LEL Lithenergy 8% 50% 39% -19% 0.585 $55,625,400
ARN Aldoro Resources -10% 0% 8% -41% 0.095 $14,135,493
NMT Neometals Ltd -2% -2% -15% -83% 0.1325 $84,063,193
IGO IGO Limited 6% 15% 7% -38% 8.025 $5,755,235,379
AAJ Aruma Resources Ltd 0% -6% -25% -76% 0.015 $2,953,373
PAM Pan Asia Metals 0% 0% 7% -57% 0.16 $26,850,684
AX8 Accelerate Resources 6% 2% -2% 14% 0.0285 $16,469,226
AM7 Arcadia Minerals 0% 24% 3% -70% 0.072 $7,851,607
AS2 Askarimetalslimited -4% 3% -38% -86% 0.081 $6,547,818
BYH Bryah Resources Ltd 14% -20% -33% -61% 0.008 $3,048,175
EMS Eastern Metals 0% -13% -3% -49% 0.035 $2,884,919
FG1 Flynngold -4% -15% -33% -27% 0.046 $7,878,764
FRS Forrestaniaresources 0% -5% -30% -85% 0.021 $3,397,501
GSM Golden State Mining -10% -18% -18% -76% 0.009 $2,793,706
IMI Infinitymining 0% -9% -9% -49% 0.1 $11,875,339
LRV Larvottoresources -1% -2% -9% -57% 0.0625 $14,087,534
MMC Mitremining 5% 11% 48% -3% 0.295 $24,966,176
RAG Ragnar Metals Ltd 0% -5% -9% 31% 0.02 $9,479,619
CTN Catalina Resources 0% 25% 67% -17% 0.005 $6,192,434
TMB Tambourahmetals -7% -16% 7% -16% 0.088 $7,879,334
TEM Tempest Minerals 0% 0% -13% -70% 0.007 $3,633,871
EMC Everest Metals Corp 0% 6% 9% 1% 0.085 $13,964,064
WCN White Cliff Min Ltd 0% -12% 0% 36% 0.015 $20,069,122
WML Woomera Mining Ltd 11% 0% -17% -62% 0.005 $5,481,625
AZL Arizona Lithium Ltd 9% -4% 9% -58% 0.025 $87,662,602
CRR Critical Resources -6% 6% 31% -65% 0.017 $32,001,305
KGD Kula Gold Limited 0% -20% -20% -64% 0.008 $3,385,695
LRS Latin Resources Ltd 16% 10% 33% 100% 0.22 $531,310,198
PNN Power Minerals Ltd 9% 19% 15% -53% 0.19 $15,290,818
WR1 Winsome Resources 5% 5% 29% -61% 0.775 $140,227,012
KZR Kalamazoo Resources -1% -10% -1% -42% 0.099 $17,480,354
MTM MTM Critical Metals -10% -2% 13% -14% 0.09 $12,429,636
QXR Qx Resources Limited 5% 0% 18% -47% 0.02 $21,091,479
SCN Scorpion Minerals 0% 0% -36% -74% 0.018 $7,370,211
AZI Altamin Limited 0% -2% -13% -37% 0.048 $21,064,754
ENT Enterprise Metals 0% 0% -25% -63% 0.003 $2,405,913
KAI Kairos Minerals Ltd 0% -14% 0% -31% 0.012 $31,450,946
STM Sunstone Metals Ltd 11% -9% -17% -71% 0.01 $31,505,864
PGD Peregrine Gold 0% -4% -28% -46% 0.23 $15,543,037
AVW Avira Resources Ltd 0% -33% 0% -67% 0.001 $2,133,790
NVA Nova Minerals Ltd -4% 2% -24% -50% 0.265 $57,994,767
GT1 Greentechnology 15% 3% 0% -77% 0.15 $41,437,773
BNR Bulletin Res Ltd -7% -7% -13% -32% 0.075 $23,782,679
CAI Calidus Resources 0% -6% -12% -35% 0.15 $91,894,073
MRR Minrex Resources Ltd 8% 8% 0% -53% 0.014 $14,103,278
A8G Australasian Metals 0% -9% -36% -53% 0.08 $4,169,640
EFE Eastern Resources 0% -13% 0% -56% 0.007 $8,693,625
MQR Marquee Resource Ltd 0% 5% 5% -30% 0.021 $8,681,072
SRZ Stellar Resources -6% 21% 21% -15% 0.0085 $10,341,238
LSR Lodestar Minerals 0% 0% -33% -60% 0.002 $4,046,795
NWM Norwest Minerals -13% -24% 4% -21% 0.026 $10,271,085
AOA Ausmon Resorces 0% 0% 0% -40% 0.003 $3,176,998
VKA Viking Mines Ltd 0% -8% -15% 10% 0.011 $11,277,843
IPT Impact Minerals 0% -8% 0% 20% 0.012 $34,376,447
SRI Sipa Resources Ltd -5% -14% -10% -30% 0.019 $4,563,163
VMC Venus Metals Cor Ltd 0% -1% 0% 22% 0.096 $18,213,954
RGL Riversgold 0% 13% -10% -59% 0.009 $8,708,953
ZNC Zenith Minerals Ltd -8% -11% -47% -62% 0.085 $32,419,041
RAS Ragusa Minerals Ltd 0% -8% -23% -77% 0.023 $3,279,772
G88 Golden Mile Res Ltd 0% -8% -27% -46% 0.011 $4,523,451
EPM Eclipse Metals 0% 0% -13% -65% 0.007 $14,525,380
EVR Ev Resources Ltd -7% -7% 30% -13% 0.013 $16,164,237
WC8 Wildcat Resources 10% 19% 68% 2239% 0.655 $711,523,683
MNS Magnis Energy Tech 0% 0% 0% -88% 0.042 $50,378,922
RIO Rio Tinto Limited 0% -3% -7% 7% 123.6 $45,707,852,430
THR Thor Energy PLC 0% 0% -26% -53% 0.026 $4,830,075
YAR Yari Minerals Ltd 0% -25% -40% -70% 0.006 $2,894,147
MXR Maximus Resources -6% -9% -11% -11% 0.031 $10,591,210
DRE Dreadnought Resources Ltd 0% -5% -18% -77% 0.018 $62,668,313
MM1 Midasmineralsltd 4% -6% -23% -47% 0.085 $7,113,274
M2R Miramar -6% -11% -29% -75% 0.017 $2,679,652
LLI Loyal Lithium Ltd 2% 4% 8% -17% 0.275 $22,487,576
LRD Lordresourceslimited 0% -6% -14% -67% 0.051 $1,893,738
WMC Wiluna Mining Corp 0% 0% 0% 0% 0.205 $74,238,031
AUN Aurumin -3% -15% 18% -34% 0.033 $12,187,065
ZEO Zeotech Limited -8% -25% -17% -50% 0.024 $45,069,000
ALY Alchemy Resource Ltd 0% 0% 0% -47% 0.008 $9,424,610
LIS Lisenergylimited 0% -13% -10% -50% 0.14 $89,628,032
GW1 Greenwing Resources 11% 0% -16% -64% 0.08 $13,050,107
KTA Krakatoa Resources 0% -7% -30% -64% 0.014 $6,609,501
TYX Tyranna Res Ltd 9% -14% -14% -50% 0.012 $36,161,679
DAF Discovery Alaska Ltd 0% -20% -41% -41% 0.016 $3,747,755
FTL Firetail Resources -4% 0% -25% -70% 0.045 $6,998,561
IR1 Irismetals -28% -41% -25% -67% 0.38 $68,005,866
LNR Lanthanein Resources 0% -17% -17% -74% 0.005 $6,449,060
DAL Dalaroometalsltd 0% 0% -5% -75% 0.02 $1,655,000
TKM Trek Metals Ltd 3% -17% -8% -44% 0.035 $17,444,613
CY5 Cygnus Metals Ltd -3% -13% -23% -81% 0.058 $17,493,548
TUL Tulla Resources 0% -100% -100% -100% 0 $118,262,971
WES Wesfarmers Limited -1% 5% 13% 36% 66.1 $75,524,864,809
LLL Leolithiumlimited 0% 0% 0% 0% 0.505 $498,553,663
OCN Oceanalithiumlimited 3% 16% -17% -81% 0.064 $3,352,743
A11 Atlantic Lithium 7% -2% 13% -38% 0.395 $240,377,550
CMD Cassius Mining Ltd -9% -6% -11% -6% 0.031 $18,428,153
VSR Voltaic Strategic 11% 5% 18% 0% 0.02 $8,695,870
SGQ St George Min Ltd 0% -9% -25% -70% 0.021 $20,759,349
LLO Lion One Metals Ltd 0% 0% -27% -30% 0.62 $9,586,267
PAT Patriot Lithium 0% -24% -39% -77% 0.076 $5,290,902
PL3 Patagonia Lithium -3% -6% 39% 0% 0.16 $8,106,203
BUR Burleyminerals 3% -10% -53% -77% 0.063 $6,301,102
CHR Charger Metals 4% 0% 0% -56% 0.13 $9,677,531
RMX Red Mount Min Ltd 0% 0% -33% -60% 0.002 $5,347,152
DLI Delta Lithium 12% 3% 18% -18% 0.325 $206,427,696
LM1 Leeuwin Metals Ltd -5% -8% -33% 0% 0.084 $4,122,947
ENT Enterprise Metals 0% 0% -25% -63% 0.003 $2,405,913
FIN FIN Resources Ltd 0% 0% -6% 0% 0.015 $9,739,031
DTM Dart Mining NL 0% 8% 0% -69% 0.014 $3,186,115
NIS Nickelsearch -3% -6% -29% -65% 0.032 $7,046,901
EG1 Evergreenlithium -5% 0% -13% 0% 0.1 $5,904,150
MAN Mandrake Res Ltd -3% -3% 0% -30% 0.038 $24,014,637
FBM Future Battery 10% -7% 0% 0% 0.057 $27,755,311
LPM Lithium Plus 3% 3% -20% -37% 0.18 $15,047,935
KOB Kobaresourceslimited 0% -23% -18% -21% 0.115 $14,997,917
EMC Everest Metals Corp 0% 6% 9% 1% 0.085 $13,964,064
LRD Lordresourceslimited 0% -6% -14% -67% 0.051 $1,893,738
IEC Intra Energy Corp 0% 25% -17% -58% 0.0025 $4,226,954
REC Rechargemetals 0% -19% -12% -53% 0.071 $7,905,990
SLM Solismineralsltd 0% -4% -11% -25% 0.12 $9,418,650
AZS Azure Minerals 0% -2% -2% 1121% 3.54 $1,623,725,696
DYM Dynamicmetalslimited 0% -14% 15% -3% 0.155 $5,580,000
TOR Torque Met 9% 3% -13% 9% 0.175 $24,488,564
SBR Sabre Resources -5% -14% -33% -44% 0.018 $7,110,977
ICL Iceni Gold -6% -55% -63% -82% 0.017 $4,438,099
TMX Terrain Minerals 25% 11% 0% -17% 0.005 $5,726,683
MHC Manhattan Corp Ltd 0% 0% -25% -50% 0.003 $8,810,939
MHK Metalhawk. -3% -13% -34% -48% 0.065 $6,660,768
NKL Nickelxltd 0% 3% -8% -50% 0.037 $3,249,161
TMB Tambourahmetals -7% -16% 7% -16% 0.088 $7,879,334
ANX Anax Metals Ltd 6% -10% -5% -72% 0.019 $9,764,063
PMT Patriotbatterymetals 11% 5% 5% -39% 0.89 $452,665,322
BM8 Battery Age Minerals -3% 10% -6% -67% 0.16 $15,140,452
L1M Lightning Minerals 0% 1% -24% -52% 0.072 $3,040,205
ADG Adelong Gold Limited 0% 0% 0% -44% 0.005 $3,498,278
TOR Torque Met 9% 3% -13% 9% 0.175 $24,488,564
AL8 Alderan Resource Ltd 0% 11% 25% -29% 0.005 $5,534,307
OZM Ozaurum Resources -6% -15% -16% 27% 0.066 $11,112,500
FL1 First Lithium Ltd -4% -11% -8% 31% 0.235 $17,162,658
PLN Pioneer Lithium 0% -14% -9% 0% 0.155 $4,405,875
WYX Western Yilgarn NL -12% -17% -20% -26% 0.074 $4,196,059
RDN Raiden Resources Ltd -2% -6% -6% 416% 0.0245 $66,414,628
PFE Panteraminerals -2% -11% -4% -57% 0.047 $6,365,882
GRE Greentechmetals 2% 0% -10% 74% 0.235 $19,338,394
OLY Olympio Metals Ltd 3% 0% 13% -33% 0.09 $5,533,156
SUM Summitminerals 7% -4% 7% -50% 0.075 $3,335,999
JBY James Bay Minerals -3% -11% -20% 0% 0.16 $5,353,425
SCN Scorpion Minerals 0% 0% -36% -74% 0.018 $7,370,211
JNO Juno 4% -8% -26% -19% 0.07 $12,190,332
CC9 Chariot Corporation 2% -3% -19% 0% 0.29 $23,309,112
OBM Ora Banda Mining Ltd 0% 2% 11% 155% 0.255 $435,415,555
RON Roninresourcesltd 0% -8% -26% -28% 0.115 $4,234,876
ASR Asra Minerals Ltd 0% 20% -14% -50% 0.006 $9,918,974
PFE Panteraminerals -2% -11% -4% -57% 0.047 $6,365,882
TG6 Tgmetalslimited -5% 10% 14% 128% 0.285 $16,225,850
HAW Hawthorn Resources 0% -4% -18% -20% 0.08 $26,801,249
KM1 Kalimetalslimited 5% -2% -21% 0% 0.41 $29,773,417
AEV Avenira Limited 0% 0% -17% -29% 0.01 $21,925,716
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Charged up 🔋

Terrain Minerals (ASX:TMX) +25%

Aeon Metals (ASX:AML) +20%

Latin Resources (ASX:LRS) +16%

Global Lithium Resources (ASX:GL1) +15%

Galan Lithium (ASX:GLN) +14%

 

And in other lithium related news…

Azure Minerals (ASX:AZS) has confirmed all competition law approvals for its joint takeover by SQM and Hancock Prospecting (now officially known as SH Mining) have been obtained, meaning a significant chunk of the conditions precedent for the high-profile transaction are now satisfied.

The proposed takeover still remains subject to a number of other conditions which need to be satisfied or waived before SH Mining can take control of Azure and the amazing Andover lithium discovery in the Pilbara.Azure’s board continues to unanimously recommend SH Mining’s cash offer of $3.70/share.

Anson Resources (ASX:ASN) has begun the “surface” phase of drilling at its Green River lithium project in Utah, having completed the “conductor” phase down to a depth of 80ft.

This “surface” phase involves drilling down to 1,500ft at the Bosydaba #1 well targeting the lithium-rich brines in the Clastic horizons and the Mississippian units.

The well is located on a recently purchased private property in the Paradox Basin.Anson says it designed the drilling program such that there is no interaction between the surface waters and the supersaturated lithium brines.

Galan Lithium’s (ASX:GLN) Pond 1 earthworks and liner installation are now complete, allowing the company to move ahead with evaporation activities, which represent the first step in GL1’s long-term production schedule. Read more on that > here.

Future Battery Minerals (ASX:FBM) has received ministerial approval for the new Conservation Management Plan (CMP) over the northern area of its Kangaroo Hills project. This marks a key awaited milestone in the approvals process for drilling. More > here.

 

At Stockhead we tell it like it is. While ASZ, ASN, GL1 and FBM are Stockhead advertisers at the time of writing, they did not sponsor this article. 

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