Eye on Lithium: Prices of lithium rise 5.5%; McKinsey says downstream processing cheaper in Australia

Another rise in lithium prices
Lithium refinement in Australia extremely cost-efficient, says McKinsey analysis
Latin Resources backs Solis into a 5-bagger at Jaguar

All your lithium news, Friday, June 9.

Lithium prices in China ticked up again for the week ending June 9, with purchasing activity by cathode manufacturers increasing in efforts to meet moderately growing orders from cell makers.

While last week’s surge in prices has slightly faded, pricing across the board was still in the green, with lithium carbonate prices up another 5.5%, while lithium hydroxide was also up 4.4%.

Benchmark Intelligence contacts reported that some lithium producers are holding on to their inventories in anticipation of a further climb in prices.

Pic supplied via Benchmark Intelligence.

And contrary to POSCO’s claim of the high cost of lithium refinement in Australia, as reported by Stockhead here just over a fortnight ago, McKinsey analysts found that Aussie lithium hydroxide plants could be the world’s lowest-cost producers over their life cycle, despite lamentations regarding construction and labour costs.

McKinsey says that if the plants were built near-to-mine with decent access to port (entirely possible), it would counteract those perceived additional costs.

While 66% of lithium exports are gauged to still be spodumene concentrate by 2030 on current refinement levels, building out local lithium hydroxide processing could reap further annual revenues from the sector worth up to an extra $9.6 billion per annum.

If Australia does decide to go further downstream with its refinement capabilities, an extra 4,000 jobs would be created as well, McKinsey wrote.

“Our modelling suggests that Australia could produce lithium hydroxide at approximately $6,600 per tonne of LCE, assuming integration with lithium mining, compared with $10,400 per tonne of LCE for China,” said the report.

Here’s how Aussie lithium stocks are tracking:

CODE	COMPANY	PRICE	% TODAY	MARKET CAP
MQR	Marquee Resource Ltd	0.032	45%	$7,198,565
ADV	Ardiden Ltd	0.0075	25%	$16,130,012
PL3	Patagonia Lithium	0.21	24%	$8,330,595
EPM	Eclipse Metals	0.012	20%	$20,280,598
TEM	Tempest Minerals	0.014	17%	$6,081,860
TKL	Traka Resources	0.008	14%	$6,099,305
IMI	Infinitymining	0.12	9%	$8,412,615
PSC	Prospect Res Ltd	0.125	9%	$53,159,838
LRS	Latin Resources Ltd	0.195	8%	$457,347,885
IPT	Impact Minerals	0.014	8%	$36,981,151
PAT	Patriot Lithium	0.285	8%	$16,267,688
LRV	Larvottoresources	0.145	7%	$9,079,387
DTM	Dart Mining NL	0.045	7%	$7,236,063
WCN	White Cliff Min Ltd	0.008	7%	$7,192,908
MNS	Magnis Energy Tech	0.165	6%	$172,641,141
BYH	Bryah Resources Ltd	0.019	6%	$6,149,240
SRI	Sipa Resources Ltd	0.02	5%	$4,335,005
CMD	Cassius Mining Ltd	0.02	5%	$7,761,365
KGD	Kula Gold Limited	0.021	5%	$7,464,238
QPM	Queensland Pacific	0.11	5%	$183,366,532
MAN	Mandrake Res Ltd	0.044	5%	$25,147,917
FBM	Future Battery	0.12	4%	$49,202,190
AUN	Aurumin	0.028	4%	$7,319,472
PNN	Power Minerals Ltd	0.44	4%	$30,742,070
NVA	Nova Minerals Ltd	0.295	4%	$60,103,638
CAI	Calidus Resources	0.18	3%	$97,602,717
NMT	Neometals Ltd	0.57	3%	$306,771,353
CHR	Charger Metals	0.385	3%	$16,392,888
VMC	Venus Metals Cor Ltd	0.195	3%	$34,433,450
IGO	IGO Limited	14.585	3%	$10,768,348,301
CY5	Cygnus Metals Ltd	0.225	2%	$47,110,957
SGQ	St George Min Ltd	0.05	2%	$41,185,017
PGD	Peregrine Gold	0.275	2%	$15,147,705
TUL	Tulla Resources	0.315	2%	$104,747,203
EMH	European Metals Hldg	0.705	1%	$87,458,258
AGY	Argosy Minerals Ltd	0.455	1%	$631,983,374
LTR	Liontown Resources	2.77	1%	$6,029,316,460
MIN	Mineral Resources.	69.755	1%	$13,430,352,470
AKE	Allkem Limited	15.465	1%	$9,788,051,620
DLI	Delta Lithium	0.68	1%	$305,991,556
RIO	Rio Tinto Limited	114.79	1%	$42,318,648,396
WR1	Winsome Resources	1.535	1%	$247,369,513
PLS	Pilbara Min Ltd	4.74	0%	$14,151,419,970
WES	Wesfarmers Limited	47.585	0%	$53,819,280,680
CXO	Core Lithium	1.0625	0%	$1,970,027,802
1MC	Morella Corporation	0.0085	0%	$51,837,934
AVZ	AVZ Minerals Ltd	0.78	0%	$2,752,409,203
EUR	European Lithium Ltd	0.1	0%	$148,923,918
INF	Infinity Lithium	0.105	0%	$48,572,170
INR	Ioneer Ltd	0.335	0%	$702,943,319
LPD	Lepidico Ltd	0.012	0%	$91,653,387
LPI	Lithium Pwr Int Ltd	0.33	0%	$207,648,395
MLS	Metals Australia	0.035	0%	$21,841,267
SYA	Sayona Mining Ltd	0.18	0%	$1,807,044,844
AX8	Accelerate Resources	0.023	0%	$8,684,840
FG1	Flynngold	0.075	0%	$7,865,515
FRS	Forrestaniaresources	0.075	0%	$4,566,848
MMC	Mitremining	0.28	0%	$10,705,828
RAG	Ragnar Metals Ltd	0.019	0%	$7,204,513
CTN	Catalina Resources	0.003	0%	$3,715,461
WML	Woomera Mining Ltd	0.014	0%	$13,386,257
CRR	Critical Resources	0.041	0%	$65,384,950
KZR	Kalamazoo Resources	0.115	0%	$17,676,730
SCN	Scorpion Minerals	0.068	0%	$23,508,021
ENT	Enterprise Metals	0.004	0%	$2,820,323
KAI	Kairos Minerals Ltd	0.017	0%	$33,389,589
STM	Sunstone Metals Ltd	0.02	0%	$61,639,698
EFE	Eastern Resources	0.011	0%	$13,661,411
SRZ	Stellar Resources	0.01	0%	$10,059,642
LSR	Lodestar Minerals	0.004	0%	$7,373,589
NWM	Norwest Minerals	0.034	0%	$9,439,573
AOA	Ausmon Resorces	0.004	0%	$3,877,157
VKA	Viking Mines Ltd	0.008	0%	$8,202,067
RAS	Ragusa Minerals Ltd	0.075	0%	$10,694,909
G88	Golden Mile Res Ltd	0.025	0%	$6,991,079
EVR	Ev Resources Ltd	0.015	0%	$14,039,761
WC8	Wildcat Resources	0.11	0%	$72,822,500
THR	Thor Energy PLC	0.004	0%	$5,840,051
MXR	Maximus Resources	0.034	0%	$10,847,896
MM1	Midasmineralsltd	0.195	0%	$11,140,694
M2R	Miramar	0.055	0%	$4,420,996
LLI	Loyal Lithium Ltd	0.32	0%	$19,036,800
LRD	Lordresourceslimited	0.096	0%	$3,564,684
WMC	Wiluna Mining Corp	0.205	0%	$74,238,031
ZEO	Zeotech Limited	0.062	0%	$101,723,752
ALY	Alchemy Resource Ltd	0.019	0%	$22,383,449
DAF	Discovery Alaska Ltd	0.031	0%	$7,261,276
IR1	Irismetals	1.16	0%	$74,506,800
LNR	Lanthanein Resources	0.017	0%	$19,066,785
TKM	Trek Metals Ltd	0.065	0%	$28,531,430
LLO	Lion One Metals Ltd	0.8	0%	$10,546,275
BUR	Burleyminerals	0.185	0%	$13,804,664
RMX	Red Mount Min Ltd	0.004	0%	$9,087,404
ENT	Enterprise Metals	0.004	0%	$2,820,323
FIN	FIN Resources Ltd	0.017	0%	$10,515,101
NIS	Nickelsearch	0.057	0%	$3,448,809
EG1	Evergreenlithium	0.35	0%	$19,680,500
XTC	Xantippe Res Ltd	0.003	0%	$34,440,299
KOB	Kobaresourceslimited	0.18	0%	$18,975,000
LRD	Lordresourceslimited	0.096	0%	$3,564,684
IEC	Intra Energy Corp	0.006	0%	$4,234,690
PLL	Piedmont Lithium Inc	0.93	-1%	$404,648,365
VUL	Vulcan Energy	3.605	-1%	$607,427,143
JRL	Jindalee Resources	2.01	-1%	$116,479,301
ESS	Essential Metals Ltd	0.44	-1%	$119,067,179
ASN	Anson Resources Ltd	0.1775	-1%	$220,237,309
AZI	Altamin Limited	0.068	-1%	$27,028,456
GT1	Greentechnology	0.67	-1%	$130,042,107
GLN	Galan Lithium Ltd	0.955	-2%	$326,807,943
BNR	Bulletin Res Ltd	0.061	-2%	$18,202,648
AS2	Askarimetalslimited	0.27	-2%	$18,530,422
DRE	Dreadnought Resources Ltd	0.054	-2%	$183,025,052
PAM	Pan Asia Metals	0.26	-2%	$41,145,571
LPM	Lithium Plus	0.26	-2%	$17,486,873
GL1	Globallith	1.53	-2%	$404,120,391
LLL	Leolithiumlimited	0.8925	-2%	$897,922,510
LEL	Lithenergy	1	-2%	$96,910,200
EMS	Eastern Metals	0.048	-2%	$1,914,156
MTM	MTM Critical Metals	0.1175	-2%	$10,602,907
AZL	Arizona Lithium Ltd	0.042	-2%	$115,711,526
BMM	Balkanminingandmin	0.2	-2%	$9,793,263
A11	Atlantic Lithium	0.595	-2%	$371,637,413
LIT	Lithium Australia	0.037	-3%	$46,405,284
QXR	Qx Resources Limited	0.032	-3%	$29,596,457
LKE	Lake Resources	0.475	-3%	$696,997,906
EMC	Everest Metals Corp	0.095	-3%	$12,684,445
EMC	Everest Metals Corp	0.095	-3%	$12,684,445
LM1	Leeuwin Metals Ltd	0.305	-3%	$14,107,275
LIS	Lisenergylimited	0.285	-3%	$48,944,685
MRR	Minrex Resources Ltd	0.013	-4%	$14,645,711
KTA	Krakatoa Resources	0.023	-4%	$8,721,038
OCN	Oceanalithiumlimited	0.38	-5%	$15,670,600
GSM	Golden State Mining	0.055	-5%	$8,367,324
AML	Aeon Metals Ltd.	0.018	-5%	$20,831,612
TON	Triton Min Ltd	0.036	-5%	$59,331,513
TYX	Tyranna Res Ltd	0.018	-5%	$59,022,081
YAR	Yari Minerals Ltd	0.016	-6%	$8,200,083
VSR	Voltaic Strategic	0.0985	-6%	$38,793,063
RGL	Riversgold	0.015	-6%	$15,220,183
GW1	Greenwing Resources	0.225	-6%	$35,978,346
A8G	Australasian Metals	0.145	-6%	$8,078,677
ZNC	Zenith Minerals Ltd	0.115	-8%	$44,047,610
ARN	Aldoro Resources	0.11	-8%	$16,130,849
FTL	Firetail Resources	0.11	-8%	$9,240,000
AAJ	Aruma Resources Ltd	0.053	-10%	$9,260,729
TMB	Tambourahmetals	0.089	-11%	$4,119,260
DAL	Dalaroometalsltd	0.064	-15%	$3,249,375
RLC	Reedy Lagoon Corp.	0.005	-17%	$3,400,318
AM7	Arcadia Minerals	0.13	-24%	$7,938,642
AVW	Avira Resources Ltd	0.002	-33%	$6,401,370

Some 42 lithium stocks were in the green today, while 56 stayed even. Meanwhile 48 dropped down, albeit not by much, across the board.

WHO’S GOT NEWS OUT?

SOLIS MINERALS (ASX:SLM) (TSX-V SLMN)

Since announcing the purchase of the Jaguar lithium project in Brazil at the end of last month, SLM has raised $8.1m to get on with drilling after it produced rock-chip samples grading up to a whopping 4.95% Li2O along a 1km long and 50m wide spodumene-rich pegmatite body.

Shareholder Latin Resources (ASX:LRS) – also a Brazilian lithium player – increased its investment into SLM to 17.79%, pouring in $3m as part of the placement.

“The Jaguar pegmatite hosts confirm LCT-bearing pegmatites with some of the coarsest and most abundant spodumene occurrences I have seen,” former Delta Lithium (ASX:DLI) boss and current SLM exec director Matt Boyes says.

“These tenements, in what may be a new lithium province, are a fantastic addition to our already large tenement position in the northeast of Brazil, and with drilling to commence immediately.”

SLM expects to commence drilling on Jaguar this month, with Latin intending to support the explorer by making available its nous in exploration guidance and country experience.

Shares in SLM have risen more than 500% since late May.

FIN RESOURCES (ASX:FIN)

FIN has identified clay-hosted lithium targets at its Gaspe project, part of the recently acquitted Mount Tremblant package in Quebec, Canada.

Gaspe covers a promontory (high land that juts out into a sea or large lake) drained by several streams, where government sampling returned extremely elevated stream sediment lithium up to 342ppm (0.0342%) Li2O.

Fieldwork across the Ross, Cancet West projects in James Bay is underway, with early stage targets already uncovered.

“This early stage work completed at the Gaspe lithium project is very exciting for FIN and highlights the significant value for shareholders within our recently acquired Mount Tremblant project package,” FIN resources director Jason Bontempo said.

“We now look forward to getting on the ground in Quebec and progressing the targets across Ross, Cancet West and Gaspe.”

MARQUEE RESOURCES (ASX:MQR)

MQR is accelerating its farm-in agreement with WA mining behemoth Mineral Resources (ASX:MIN) at its West Spargoville project (WSP) that will see Chris Ellison’s MIN acquire a 25% stake in the lithium rights.

MIN will dump $4.8m into exploration activities at the project within the next 12 months as part of the JV, where MQR has completed a maiden drilling program, which consisted of 122 RC drill holes for 18,687m and 391 AC drill holes for 19.156m.

Assays from the 122 RC holes returned with a peak of 1m @1.1% Li2O, as well as more than 300 parts per million (ppm) from across the 291 AC holes.

MQR chair Charles Thomas said the accelerated farm-in agreement reflects the significant progress made to-date with MIN at WSP.

“We signed our partnership agreement with MinRes less than one year ago and have formed a very close working relationship with the team there during this period,” Thomas said.

“By accelerating the farm-in agreement and officially forming this JV with MinRes, we hope to further capitalise on the extensive knowledge and technical capabilities that they have.

“We are confident that this is only the beginning of a promising discovery and development journey between the two companies.”

MQR and MIN are currently reviewing all the data of last year’s exploration campaign and expect to announce 2023 exploration program details “in the near term”.

CHARGER METALS (ASX:CHR)

CHR has finished off an intensive 14-hole RC first-pass drilling campaign at its Megabucks and Old Bucks prospects at the Bynoe Lithium project in the NT.

The company completed 14 drill-holes for 2,045m across the two prospective target areas in its maiden drilling program, with assays expected to be returned within the next two weeks.

The explorer struck pegmatites up to 36m thick down-hole with varying degrees of weathering.

With a first 114m hole completed, drilling is now focused at the Enterprise prospect for a further 2,000m, as well as deeper holes at the Megabucks and Old Bucks prospects.

CHR will also test new emerging drill targets in the area from recon mapping where pegmatites have been observed.

Samples from all completed drill-holes have been submitted to the laboratory, with first assays expected within the next two weeks.

CHR’s Bynoe Lithium project is close to the Core Lithium (ASX:CXO) Finess lithium project which has a mineral resource of 30.6Mt at 1.31% Li2O.

At Stockhead, we tell it like it is. While Latin Resources, Charger Metals and Fin Resources are Stockhead advertisers, they did not sponsor this article.