• To find 10-bagger stocks investors often go “where the industry is less comfortable”: Rick Rule
  • But risks abound. Lithium favourite AVZ is the latest ASX stock to potentially come unstuck in a Third World jurisdiction
  • Global energy transition still represents “era defining” opportunity for Africa: Anglo American CEO Duncan Wanblad

Our High Voltage column wraps all the news driving ASX stocks with exposure to lithium, cobalt, graphite, nickel, rare earths, manganese, magnesium, and vanadium.

 

Scoring a 10-bagger stock often requires risk

To find those 10- or 20-bagger stocks you need to be prepared to take political risks and exploration risks, says well-known mining investor Rick Rule.

“You are going to have to go to jurisdictions where you are less comfortable, where the industry is less comfortable and where fewer people have gone before,” Rule says.

“If you are looking for a 5Moz deposit in the Victorian goldfields you are assuming you are smarter than hundreds of years of geologists that went before you, which is a lousy assumption.

“Can it happen? Of course. It is a wonderful place to look for a deposit – just look at the Swan Zone at Fosterville. But is it likely? No.”

Big Australian mining companies have historically preferred to operate in ‘Tier 1 jurisdictions’ like Australia, the US and Canada; locales known for their relative geopolitical stability, legislative consistency and wealth.

But increasingly the need to source scarce minerals like lithium, copper, cobalt, and nickel, has seen these major mining houses increase their exposure to operating in the Third World.

There are plenty of miners and explorers who have done well in non-Tier 1 jurisdictions.  Goldies West African Resources (ASX:WAF) and Perseus (ASX:PRU), for example, are up +350% and 515% respectively over the past five years.

But for every big win, there are losses.

 

Western mining stocks stumbling in developing countries

Last year, a coup d’état in Myanmar saw the suspension in trading for Myanmar Metals – now Mallee Mining (ASX:MYL) – which was looking to develop the historical Bawdwin lead-silver mine.

Bawdwin is a monster multi-billion-dollar project comprising JORC reserves of 18.4 million tonnes at 6.4 per cent lead, 5.4oz/t silver and 3.4 per cent zinc.

The definitive feasibility study outlined a $300m CAPEX and a 13-year mine life at 2 million tonnes per annum, with a four-year payback.

Bawdwin was going to be the world’s #3 lead producer and a top-10 silver producer.

But the coup put an end to that dream for Mallee, which accepted a lowball $30m offer for its share in the project and is now looking for something new in Australia.

 

Lithium favourite AVZ (ASX:AVZ) is the latest ASX stock to potentially come unstuck in a Third World jurisdiction, where many of the rules and regulations we take for granted in Australia often do not apply.

While the details are still hazy, China’s biggest gold miner Zijin has laid claim to a share in AVZ’s  ‘Manono’ project in the DRC.

Zijin says it has secured a deal for a 15% stake in the JV company which hosts the Manono lithium and tin project from Cominiere, a mining company 90% owned by the DRC State.

That is a headache for AVZ, which has long claimed to hold the rights to 75% of Manono.

The Zijin media statement will do little to stem fears from within the investment community about the jurisdictional risk involved in operating in Africa and the grip Chinese business interests have on the continent.

AVZ shares, currently in a trading halt, have now fallen 57.6% after hitting record $1.33 on April 4.

 

Riskier jurisdictions still have huge role to play in the energy transition

To limit global warming to 2 degrees Celsius will require almost $US2 trillion in new capital investment over next 15 years, Anglo American Group CEO Duncan Wanblad said on May 9 at the Investing in Africa Mining Indaba 2022.

$US2 trillion.

A lot of this goes toward meeting demand for metals like lithium, graphite, nickel, copper, and manganese, which makes it an “era defining” opportunity for the mineral-rich continent of Africa, Wanblad says.

“We cannot miss an era defining opportunity… We are setting up for a new economy and the African continent should and can play a significant role,” he says.

However, he said steps would need to be taken to ensure the transition was not a missed opportunity for Africa. Government policy should support regulatory certainty, as well as the rule of law, security, and the rooting out of corruption.

 

Lithium prices to pull back but demand to still outstrip supply, S&P predicts

Battery Metals Winners and Losers

Here’s how a basket of ASX stocks with exposure to lithium, cobalt, graphite, nickel, rare earths, magnesium, manganese, and vanadium is performing>>>

Battery metals stocks missing from our list? Shoot a mail to [email protected]. Be nice, he’s fragile.

Code Company % Week % Month % Six Month % Year Price Market Cap
AZI Altamin Limited 37% 5% 22% 8% 0.096 $37,604,808.19
S2R S2 Resources 3% -12% -17% -19% 0.15 $55,238,102.53
STK Strickland Metals 1% 32% -14% 169% 0.07 $93,501,283.50
VIA Viagold Rare Earth 0% 0% 0% 2339% 2 $166,624,808.00
ATM Aneka Tambang 0% 10% 14% 25% 1.25 $1,629,561.25
LML Lincoln Minerals 0% 0% 0% 0% 0.008 $4,599,869.49
MRC Mineral Commodities 0% 0% -11% -45% 0.12 $64,198,876.08
MOH Moho Resources 0% -24% -24% -42% 0.045 $5,855,791.23
NKL Nickelxltd 0% 7% 14% -16% 0.16 $10,246,500.00
FG1 Flynngold 0% -17% -17% 0% 0.145 $9,288,852.25
TSC Twenty Seven Co. Ltd 0% -13% -30% -30% 0.0035 $10,643,255.62
WC8 Wildcat Resources 0% -6% -30% 22% 0.033 $20,648,727.26
KOB Kobaresourceslimited 0% 0% 0% 0% 0.17 $12,350,000.00
OMH OM Holdings Limited -2% -6% -11% -3% 0.85 $631,522,953.14
PSC Prospect Res Ltd -3% 6% 79% 494% 0.95 $409,034,267.78
COB Cobalt Blue Ltd -3% -16% 83% 128% 0.785 $229,190,530.86
SLZ Sultan Resources Ltd -3% -12% -17% -48% 0.145 $12,492,658.35
CZL Cons Zinc Ltd -4% -32% -32% -43% 0.023 $8,081,229.70
BOA Boadicea Resources -5% -8% -5% -43% 0.185 $14,374,480.58
ENV Enova Mining Limited -5% -18% -14% -40% 0.018 $6,434,518.04
CNB Carnaby Resource Ltd -5% -15% 307% 190% 1.16 $177,266,037.46
S32 South32 Limited -6% -10% 27% 50% 4.5 $21,503,078,840.18
AKN Auking Mining Ltd -6% -23% -29% -69% 0.1225 $11,247,870.88
GBR Greatbould Resources -6% -26% -36% -15% 0.093 $40,499,728.61
LEL Lithenergy -6% 15% 13% 0% 1.25 $60,525,000.00
RFR Rafaella Resources -7% 2% -48% -61% 0.043 $10,109,658.69
BHP BHP Group Limited -7% -14% 22% -11% 44.69 $233,929,954,609.90
CML Chase Mining Limited -7% -13% -13% -41% 0.013 $6,085,725.89
SCN Scorpion Minerals -7% 13% 12% 49% 0.076 $27,210,157.74
PGD Peregrine Gold -7% -15% 7% 16% 0.44 $16,846,134.36
BUX Buxton Resources Ltd -7% -17% -9% 13% 0.087 $12,687,131.18
PLS Pilbara Min Ltd -8% -23% 3% 108% 2.46 $7,620,695,534.08
EMT Emetals Limited -8% -20% -25% -63% 0.012 $11,050,000.00
ARU Arafura Resource Ltd -8% -12% 34% 91% 0.335 $527,141,892.88
LYC Lynas Rare Earths -8% -17% 6% 42% 8.23 $7,688,546,440.08
AKE Allkem Limited -9% -17% 13% 56% 10.86 $7,218,289,533.52
MIN Mineral Resources. -9% -15% 34% 9% 51.81 $10,165,784,075.91
CMO Cosmometalslimited -9% -19% 0% 0% 0.145 $3,954,050.00
TLG Talga Group Ltd -9% -16% -39% -10% 1.34 $426,964,326.60
PRL Province Resources -10% -10% -45% -54% 0.085 $103,076,223.18
TNG TNG Limited -10% -28% -37% -27% 0.066 $97,189,275.54
BYH Bryah Resources Ltd -10% -16% -28% -41% 0.047 $10,631,737.23
ILU Iluka Resources -10% -18% 11% 19% 10.1 $4,458,725,057.97
SBR Sabre Resources -10% -44% -25% -25% 0.0045 $13,945,824.27
OZL OZ Minerals -10% -15% -12% -15% 21.91 $7,702,483,347.39
ARR American Rare Earths -10% -24% 97% 318% 0.355 $145,948,326.32
NWC New World Resources -10% -30% -39% -52% 0.043 $73,457,529.81
LRS Latin Resources Ltd -10% -43% 162% 79% 0.1075 $201,703,606.02
IGO IGO Limited -11% -19% 19% 44% 11.09 $8,860,033,412.10
EMH European Metals Hldg -11% -26% -34% -27% 1.03 $151,335,237.38
LOT Lotus Resources Ltd -11% -37% -21% 40% 0.28 $288,757,950.75
SGQ St George Min Ltd -11% -19% -37% -56% 0.039 $27,846,866.16
LMG Latrobe Magnesium -11% -24% -46% 250% 0.07 $120,276,866.33
EGR Ecograf Limited -12% -26% -32% -18% 0.42 $193,643,387.37
MCR Mincor Resources NL -12% -14% 64% 108% 2.08 $1,051,033,771.20
CNJ Conico Ltd -12% -21% -67% -64% 0.011 $12,652,718.16
CAI Calidus Resources -12% -14% 35% 105% 0.83 $352,009,882.00
IPT Impact Minerals -13% -17% -23% -34% 0.0105 $21,904,615.86
VR8 Vanadium Resources -13% -5% 40% 102% 0.105 $49,676,799.27
FNT Frontier Resources -13% -22% 4% 81% 0.028 $23,459,115.96
NWM Norwest Minerals -13% -20% -35% -38% 0.048 $9,030,369.35
NIC Nickel Mines Limited -13% -10% 10% 3% 1.135 $3,250,215,461.43
DEV Devex Resources Ltd -13% -32% 10% 67% 0.385 $117,818,988.38
MNS Magnis Energy Tech -14% -19% -48% 19% 0.38 $371,827,351.67
AQD Ausquest Limited -14% -28% 27% 0% 0.019 $17,328,133.68
WML Woomera Mining Ltd -14% -27% -5% -20% 0.019 $14,423,494.39
MNS Magnis Energy Tech -14% -19% -48% 19% 0.38 $371,827,351.67
MRR Minrex Resources Ltd -14% -29% 180% 133% 0.056 $53,461,921.98
CLA Celsius Resource Ltd -14% -33% -36% -58% 0.018 $24,429,315.36
ESR Estrella Res Ltd -14% -33% -44% -65% 0.018 $22,812,949.26
WKT Walkabout Resources -14% -19% 2% -35% 0.21 $101,761,900.20
JMS Jupiter Mines. -14% -19% -7% -32% 0.21 $421,183,072.10
THR Thor Mining PLC -14% -29% -25% -25% 0.012 $12,166,695.97
AGY Argosy Minerals Ltd -15% -25% 7% 336% 0.375 $521,552,142.65
BEM Blackearth Minerals -15% -25% -18% -18% 0.098 $28,386,353.31
AUZ Australian Mines Ltd -15% -30% -34% -25% 0.1575 $68,857,231.52
LTR Liontown Resources -15% -29% -35% 196% 1.22 $2,762,203,749.48
VRC Volt Resources Ltd -15% -15% -41% -32% 0.017 $50,441,820.43
LIT Lithium Australia -15% -23% -39% -32% 0.085 $94,199,125.38
PAM Pan Asia Metals -15% -17% -6% 260% 0.45 $33,146,389.80
AOU Auroch Minerals Ltd -15% -36% -43% -62% 0.089 $35,407,576.30
GLN Galan Lithium Ltd -15% -32% -12% 103% 1.465 $471,819,011.10
SYR Syrah Resources -15% 2% 26% 49% 1.625 $1,141,210,245.01
GME GME Resources Ltd -15% -21% 59% 97% 0.11 $59,399,076.20
JRV Jervois Global Ltd -15% -16% 32% 89% 0.74 $1,215,800,768.80
GSR Greenstone Resources -16% -25% 8% 17% 0.027 $26,577,156.98
LPD Lepidico Ltd -16% -33% -49% 69% 0.027 $178,635,473.41
SRL Sunrise -16% -3% 55% 18% 2.88 $280,980,582.48
RXL Rox Resources -16% -16% -14% -42% 0.32 $56,595,217.25
RMX Red Mount Min Ltd -16% -20% -27% -20% 0.008 $14,781,274.72
CXO Core Lithium -16% -14% 73% 355% 1.115 $1,965,812,860.42
E25 Element 25 Ltd -16% -33% -45% -66% 0.685 $104,606,602.77
NMT Neometals Ltd -16% -27% 7% 139% 1.235 $712,889,314.80
PEK Peak Rare Earths Ltd -16% -25% -19% -38% 0.57 $129,592,835.63
PVW PVW Res Ltd -16% -38% -30% 77% 0.31 $27,099,650.37
BRB Breaker Res NL -16% -21% -45% 8% 0.205 $74,943,413.67
HAS Hastings Tech Met -16% -15% -10% 28% 0.23 $497,091,588.46
BMM Balkanminingandmin -16% -18% -50% 0% 0.305 $9,988,750.00
DTM Dart Mining NL -16% -27% -39% -56% 0.061 $7,593,946.73
VUL Vulcan Energy -17% -26% -36% -9% 6.99 $933,363,688.10
A8G Australasian Metals -17% -25% -46% 0% 0.375 $17,497,459.95
MRD Mount Ridley Mines -17% -25% 7% 7% 0.0075 $40,505,069.00
BKT Black Rock Mining -17% -15% -6% 67% 0.225 $205,014,943.29
TON Triton Min Ltd -17% -17% -44% -46% 0.025 $35,245,956.96
SHH Shree Minerals Ltd -17% -38% 0% -33% 0.01 $13,444,605.81
FRB Firebird Metals -17% -32% -46% -55% 0.25 $13,646,830.08
CHN Chalice Mining Ltd -17% -15% -29% -21% 5.91 $2,265,049,764.12
STM Sunstone Metals Ltd -17% -23% -18% 238% 0.054 $142,129,592.75
EUR European Lithium Ltd -17% -36% -55% 33% 0.077 $114,781,831.79
WR1 Winsome Resources -17% -27% 0% 0% 0.385 $55,218,797.54
EFE Eastern Resources -17% -28% -28% 280% 0.038 $38,783,028.61
IPX Iperionx Limited -18% -36% -3% -19% 0.89 $129,766,854.18
KFM Kingfisher Mining -18% -30% 17% -9% 0.21 $7,191,450.21
RAS Ragusa Minerals Ltd -18% -20% -29% -13% 0.07 $9,298,679.42
CAE Cannindah Resources -18% -35% -23% 231% 0.255 $141,441,649.61
AXE Archer Materials -18% -23% -57% -9% 0.695 $175,985,716.97
KOR Korab Resources -18% -24% -46% 167% 0.032 $13,213,800.00
MTM Mtmongerresources -18% -29% 3% 0% 0.16 $5,545,605.28
IXR Ionic Rare Earths -18% -29% 45% 123% 0.058 $228,288,990.28
NTU Northern Min Ltd -18% -32% -27% 5% 0.04 $199,243,448.26
GAL Galileo Mining Ltd -18% -9% 0% -26% 0.2 $33,681,841.00
INR Ioneer Ltd -18% -30% -35% 44% 0.51 $1,097,669,695.50
IMI Infinitymining -18% -18% 0% 0% 0.155 $10,350,000.00
LPI Lithium Pwr Int Ltd -19% -26% 29% 105% 0.615 $214,724,081.52
GSM Golden State Mining -19% -36% -45% -53% 0.061 $6,747,952.38
REE Rarex Limited -19% -26% -22% -18% 0.078 $46,704,458.23
RBX Resource B -19% -5% -3% 474% 0.195 $9,156,959.78
GL1 Globallith -19% -33% 156% 413% 1.64 $265,013,096.45
JRL Jindalee Resources -19% -16% 27% 24% 3.41 $218,613,860.46
AZL Arizona Lithium Ltd -19% -26% 20% 272% 0.1375 $323,744,285.74
AML Aeon Metals Ltd. -19% -44% -25% -49% 0.038 $33,766,546.63
RAG Ragnar Metals Ltd -19% 19% -16% -34% 0.038 $14,907,395.56
TMB Tambourahmetals -19% -22% -14% 0% 0.21 $9,474,297.54
RLC Reedy Lagoon Corp. -19% -24% -40% 32% 0.025 $14,257,287.98
MMC Mitremining -19% -33% -36% 0% 0.145 $3,791,914.00
EMN Euromanganese -19% -30% -43% -43% 0.31 $79,709,598.47
FTL Firetail Resources -20% 0% 0% 0% 0.33 $22,550,612.50
QEM QEM Limited -20% -20% -9% -5% 0.2 $27,221,599.92
TKL Traka Resources -20% -27% -47% -50% 0.008 $6,198,971.05
VML Vital Metals Limited -20% -25% -13% -14% 0.048 $208,524,154.20
RR1 Reach Resources Ltd -20% -25% -33% 64% 0.006 $11,460,303.83
KAI Kairos Minerals Ltd -20% -23% -25% -14% 0.024 $51,014,430.77
IG6 Internationalgraphit -20% -17% 0% 0% 0.3 $25,261,313.48
AAJ Aruma Resources Ltd -20% -52% -15% 21% 0.075 $13,341,727.76
PAN Panoramic Resources -20% -31% 21% 59% 0.255 $553,746,781.08
PLL Piedmont Lithium Inc -20% -21% -15% -12% 0.74 $443,159,472.00
LEG Legend Mining -20% -20% 18% -49% 0.066 $181,838,957.59
ZNC Zenith Minerals Ltd -20% -19% 40% 22% 0.33 $127,244,537.35
CTM Centaurus Metals Ltd -21% -28% 0% 52% 1.08 $491,172,213.95
MAN Mandrake Res Ltd -21% -22% -21% -71% 0.046 $22,695,084.54
ADV Ardiden Ltd -21% -18% -18% -4% 0.0115 $32,020,024.27
AM7 Arcadia Minerals -21% -19% -19% 0% 0.21 $7,873,312.50
NVA Nova Minerals Ltd -21% -37% -59% -59% 0.6 $113,527,439.55
BNR Bulletin Res Ltd -21% -35% 100% 122% 0.15 $43,513,534.05
ESS Essential Metals Ltd -21% -5% 111% 427% 0.485 $119,219,176.96
AZS Azure Minerals -21% -24% -33% -17% 0.26 $85,452,323.28
AVZ AVZ Minerals Ltd -21% -30% 49% 388% 0.78 $2,752,409,203.44
MQR Marquee Resource Ltd -22% -15% -30% 58% 0.098 $29,927,854.56
QPM Queensland Pacific -22% -24% -36% 21% 0.145 $223,751,404.00
AX8 Accelerate Resources -22% -43% -28% -25% 0.036 $9,747,979.26
PNT Panthermetalsltd -22% -25% 0% 0% 0.18 $5,740,000.00
AS2 Askarimetalslimited -22% -37% 143% 0% 0.485 $20,763,470.42
FFX Firefinch Ltd -22% -16% 31% 137% 0.89 $1,116,274,843.85
AVL Aust Vanadium Ltd -22% -33% 121% 152% 0.053 $184,006,941.24
ASN Anson Resources Ltd -22% -32% -32% 59% 0.105 $113,070,356.85
ENT Enterprise Metals -22% -39% 1% -41% 0.014 $9,025,055.97
SRZ Stellar Resources -22% -25% -13% -16% 0.021 $19,257,960.40
CMX Chemxmaterials -22% -25% 0% 0% 0.19 $9,731,557.71
KZR Kalamazoo Resources -23% -9% -14% -32% 0.31 $46,462,199.68
BSX Blackstone Ltd -23% -33% -53% -21% 0.275 $138,723,031.68
CHR Charger Metals -23% -32% 15% 0% 0.55 $20,363,146.88
RNU Renascor Res Ltd -23% -35% 58% 173% 0.205 $441,112,790.55
GT1 Greentechnology -23% -20% 220% 0% 0.8 $116,478,360.00
SYA Sayona Mining Ltd -23% -23% 56% 557% 0.2425 $1,902,696,002.48
PUR Pursuit Minerals -23% -38% -38% -66% 0.02 $19,856,533.07
EMS Eastern Metals -23% -17% -39% 0% 0.15 $5,696,000.00
LSR Lodestar Minerals -23% -33% 0% -23% 0.01 $19,122,810.83
TEM Tempest Minerals -23% -39% 133% 212% 0.07 $33,802,003.10
TMT Technology Metals -23% -26% 1% 3% 0.365 $78,903,664.36
ASO Aston Minerals Ltd -23% -32% 0% -28% 0.115 $136,820,677.25
CRR Critical Resources -23% -13% 41% 350% 0.072 $113,058,583.44
MLX Metals X Limited -24% -21% 47% 104% 0.53 $539,823,309.87
KTA Krakatoa Resources -24% 36% 19% 31% 0.08 $29,645,052.86
ODE Odessa Minerals Ltd -24% -6% 220% 220% 0.016 $8,594,417.73
KGD Kula Gold Limited -24% -33% -33% -13% 0.035 $7,531,147.12
FRS Forrestaniaresources -24% -22% -41% 0% 0.265 $8,148,653.16
GW1 Greenwing Resources -24% -19% -19% -3% 0.34 $46,833,992.62
WIN Widgienickellimited -25% -29% 59% 0% 0.3575 $95,076,000.00
HNR Hannans Ltd -25% -29% -41% 305% 0.024 $67,763,058.38
CZN Corazon Ltd -25% -31% -32% -24% 0.024 $14,647,933.37
FGR First Graphene Ltd -25% -29% -38% -52% 0.12 $72,804,390.88
SRI Sipa Resources Ltd -25% -26% -26% -41% 0.039 $8,611,041.73
PGM Platina Resources -25% -35% -46% -58% 0.036 $17,375,293.68
ADD Adavale Resource Ltd -25% -44% -48% -56% 0.03 $12,414,172.65
AVW Avira Resources Ltd -25% -36% -36% -44% 0.0045 $10,593,950.00
1MC Morella Corporation -26% -26% -59% -59% 0.026 $139,757,777.62
NC1 Nicoresourceslimited -26% -1% 0% 0% 1.05 $94,666,252.17
AR3 Austrare -26% -23% -43% 0% 0.51 $39,514,580.62
EVR Ev Resources Ltd -26% -36% -15% 30% 0.039 $40,743,299.12
POS Poseidon Nick Ltd -27% -31% -31% -13% 0.061 $199,157,369.19
WCN White Cliff Min Ltd -27% -44% 46% -5% 0.019 $14,379,273.96
LKE Lake Resources -27% -27% 32% 415% 1.365 $1,929,693,234.70
HXG Hexagon Energy -27% -39% -77% -77% 0.027 $14,874,561.13
GRE Greentechmetals -27% -43% 0% 0% 0.16 $5,786,799.82
ALY Alchemy Resource Ltd -28% 31% 75% 34% 0.021 $20,967,629.25
INF Infinity Lithium -28% -21% -37% -32% 0.13 $58,076,121.74
GED Golden Deeps -28% -41% 18% 18% 0.013 $16,172,230.84
ARN Aldoro Resources -28% -24% -61% -40% 0.205 $24,307,329.31
ARL Ardea Resources Ltd -29% -36% 125% 138% 1.07 $199,441,882.10
G88 Golden Mile Res Ltd -30% -32% -12% -49% 0.045 $9,635,165.47
QXR Qx Resources Limited -30% -45% 57% 147% 0.047 $42,108,753.73
AOA Ausmon Resorces -30% -36% 0% 17% 0.007 $6,858,314.74
LPM Lithium Plus -31% 0% 0% 0% 0.6 $27,886,375.00
CWX Carawine Resources -31% -31% -24% -50% 0.145 $23,431,838.99
WMG Western Mines -32% -25% 8% 0% 0.21 $8,791,800.00
VMC Venus Metals -33% -30% -30% -28% 0.13 $25,683,376.11
LRV Larvottoresources -34% -4% 0% 0% 0.265 $11,744,137.50
RGL Riversgold -34% -50% 143% -3% 0.044 $28,000,858.61
MLS Metals Australia -39% -41% 113% 42% 0.085 $36,467,733.98
PNN PepinNini Minerals -43% -24% -17% 86% 0.53 $34,371,762.32