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

 

The structural shift from fossil fuels to green energy is all but locked in. Now the issue becomes – how do we get to net zero emissions by 2050? What materials are needed and where will they come from?

According to an article in The Economist, Far East Capital analyst Warwick Grigor reckons the market for key minerals needed for clean energy production will need to expand seven-fold in order to meet targets for 2030 and 2050.

That is a lot of lithium, nickel, copper, graphite, rare earths and cobalt we need to find from somewhere.

“Will there be another surge in commodity prices on top of the doubling of lithium prices and 70% increase in copper prices that we have seen over the last year?” Grigor asks.

“Will prices rises lead to boosts in supply, or are there practical issues of supply expansion that mute the price response?

“Can new projects be fast-tracked in a world that is being strangled by red tape and compliance, not to mention social issues?”

Ignore the noise

Bringing these issues to the stock market will provide plenty of room for swings in sentiment, Grigor says, with bursts of enthusiasm for particular commodities promising to deliver good short term trading profits.

“That means money will roll from one commodity to another, but the underlying long term trend should be more consistent,” he says.

“Rather than considering the trade cycle and swings in supply and demand, analysts will need to focus more on the supply, or lack of it, while demand continues to rise ferociously.

“That sounds like a perfect storm for rising commodity prices.”

Strike one for global nickel supply

Workers are on strike at Vale’s Canadian Sudbury operations, a significant global producer of copper, nickel and cobalt for lithium-ion batteries.

In 2009, workers went on a year-long strike, with operations suspended from July 2009 to July 2010.

Mined nickel production fell from 85,000t in 2008 to 44,000t in 2009 and 22,000t Ni in 2010, Roskill says.

“If there is no satisfactory outcome to the strike by the end of the year, and based on previous quarterly production, we estimate that production loss would be significant for the remainder of the year,” Roskill says.

“While Vale has been engaged with the employees through their labour council, there is a considerable gap between what Vale is offering and what the employees are demanding.”

Here’s how ASX battery metals stocks are performing

Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:

CODE COMPANY 1 WEEK RETURN % 1 MONTH RETURN % 6 MONTH RETURN % 1 YEAR RETURN % PRICE MARKET CAP
STK Strickland Metals 50 100 2 250 0.048 $ 30,145,353.89
INF Infinity Lithium 42 -48 -37 77 0.098 $ 37,446,873.71
AUZ Australian Mines 37 37 66 232 0.026 $ 95,074,892.40
FFX Firefinch 25 6 225 379 0.455 $ 357,193,307.38
ARL Ardea Resources 23 22 44 102 0.605 $ 74,048,937.56
GED Golden Deeps 21 45 4 81 0.0145 $ 9,298,217.28
BSM Bass Metals 20 0 50 200 0.006 $ 21,923,951.52
AGY Argosy Minerals 18 31 73 81 0.1175 $ 131,278,528.92
QPM Queensland Pacific 17 62 415 1033 0.17 $ 195,186,349.88
TMT Technology Metals 16 4 4 132 0.36 $ 52,562,319.95
ARR American Rare Earths 15 28 14 355 0.091 $ 30,087,191.01
HNR Hannans 14 14 33 60 0.008 $ 18,879,817.54
EMH European Metals 14 36 117 552 1.695 $ 218,154,661.20
LTR Liontown Resources 11 58 86 548 0.68 $ 1,246,090,336.99
PSC Prospect Resources 11 22 34 129 0.195 $ 67,208,524.74
SBR Sabre Resources 10 10 -39 120 0.0055 $ 8,415,318.25
AVL Australian Vanadium 10 5 57 120 0.022 $ 64,463,493.91
ASN Anson Resources 10 31 113 89 0.068 $ 59,915,262.01
VUL Vulcan Energy 9 33 230 1848 8.67 $ 947,973,452.80
CTM Centaurus Metals 9 4 9 146 0.725 $ 244,047,626.92
GME GME Resources 9 7 17 64 0.061 $ 33,968,882.73
AXE Archer Materials 8 5 50 29 0.775 $ 166,136,861.31
GLN Galan Lithium 8 14 129 410 0.79 $ 194,466,210.87
LPI Lithium Power International 8 -13 -20 41 0.205 $ 64,731,670.89
LPD Lepidico 8 -7 56 75 0.014 $ 72,630,317.65
JRV Jervois Mining 7 39 80 300 0.64 $ 509,454,804.05
PRL Province Resources 7 -14 1131 763 0.16 $ 161,190,672.60
LYC Lynas Rare Earths 6 3 51 193 5.62 $ 5,154,169,471.88
DEV Devex Resources 6 47 98 314 0.435 $ 143,142,794.66
RLC Reedy Lagoon 6 -5 58 280 0.019 $ 8,930,497.15
MIN Mineral Resources 5 14 46 149 50.84 $ 9,329,219,590.26
PUR Pursuit Minerals 5 31 264 1127 0.08 $ 72,828,829.36
AQD Ausquest 5 28 35 92 0.023 $ 18,933,366.11
FGR First Graphene 4 0 -6 62 0.235 $ 129,514,934.40
CWX Carawine Resources 4 -11 -2 44 0.245 $ 27,222,475.50
INR Ioneer 4 -6 28 177 0.3325 $ 616,419,766.30
RNU Renascor Resources 4 20 592 730 0.083 $ 155,933,067.12
NKL Nickelx 3 7 0.16 $ 9,095,000.00
EGR Ecograf 3 5 300 841 0.64 $ 299,006,250.24
ARN Aldoro Resources 3 3 134 359 0.34 $ 26,905,928.01
VRC Volt Resources 3 0 192 75 0.035 $ 83,311,483.54
SYR Syrah Resources 3 10 23 229 1.07 $ 540,559,448.21
TON Triton Minerals 3 -5 -27 -24 0.037 $ 40,840,850.41
WKT Walkabout Resources 3 5 39 63 0.195 $ 72,415,392.55
PLS Pilbara Minerals 3 25 68 374 1.37 $ 4,113,714,667.20
REE Rarex 2 -2 -30 33 0.084 $ 38,231,001.95
GL1 Global Lithium 2 -11 0.27 $ 23,133,732.96
PNN PepinNini Minerals 2 8 72 55 0.275 $ 14,345,175.68
GAL Galileo Mining 2 8 22 47 0.28 $ 37,921,819.33
G88 Golden Mile Resources 2 -2 21 80 0.063 $ 8,121,063.02
AVZ AVZ Minerals 2 9 58 172 0.1575 $ 462,426,428.00
NIC Nickel Mines 1 5 -6 95 1.055 $ 2,728,806,520.34
BSX Blackstone 1 4 -5 143 0.365 $ 121,118,749.35
OZL OZ Minerals 1 1 36 149 25.39 $ 8,519,120,304.97
BHP BHP Group 0 -1 15 36 49.05 $ 144,199,425,736.30
MLS Metals Australia 0 -25 -25 50 0.0015 $ 8,454,376.09
IPT Impact Minerals 0 0 -20 33 0.016 $ 32,380,718.70
PLL Piedmont Lithium 0 31 165 895 0.915 $ 549,081,114.00
VR8 Vanadium Resources 0 2 77 212 0.053 $ 21,340,649.36
TLG Talga Group 0 3 -17 272 1.47 $ 454,844,859.00
PGM Platina Resources 0 22 67 200 0.072 $ 29,794,901.00
RXL Rox Resources 0 -6 -38 24 0.031 $ 70,923,425.31
QXR Qx Resources 0 0 0 33 0.016 $ 9,995,434.82
ATM Aneka Tambang 0 0 0 0 1 $ 1,303,649.00
AJM Altura Mining 0 0 0 27 0.07 $ 209,037,029.25
LML Lincoln Minerals 0 0 0 60 0.008 $ 4,599,869.49
LKE Lake Resources 0 10 291 671 0.27 $ 277,145,326.17
NTU Northern Minerals 0 -5 -3 75 0.035 $ 174,293,386.78
ARU Arafura Resource 0 6 46 169 0.175 $ 204,886,633.53
TKL Traka Resources 0 6 -23 114 0.017 $ 8,609,906.16
BOA Boadicea Resources 0 -17 41 78 0.29 $ 18,022,266.34
SRL Sunrise 0 -14 -15 18 2.18 $ 195,641,006.67
JRL Jindalee Resources -1 16 266 797 2.78 $ 150,599,184.12
MCR Mincor Resources NL -1 2 -10 45 1.005 $ 436,690,763.93
IGO IGO Limited -1 1 19 48 7.43 $ 5,755,235,378.80
SGQ St George Min -1 0 -30 -26 0.081 $ 50,670,420.58
PAN Panoramic Resources -2 5 13 107 0.1575 $ 328,146,240.64
MNS Magnis Energy Tech -2 -2 53 297 0.29 $ 242,658,845.61
MLX Metals X Limited -2 16 160 202 0.26 $ 235,889,177.42
MRC Mineral Commodities -2 5 -39 5 0.23 $ 100,373,145.62
BEM Blackearth Minerals -2 -4 162 213 0.1125 $ 23,262,197.97
POS Poseidon Nick -2 35 29 174 0.085 $ 224,753,188.16
NMT Neometals -3 14 138 234 0.535 $ 291,762,927.31
BKT Black Rock Mining -3 -3 88 235 0.165 $ 144,040,586.05
SYA Sayona Mining -3 103 643 856 0.065 $ 333,724,243.58
HWK Hawkstone Mng -3 0 200 275 0.03 $ 50,712,692.52
SRI Sipa Resources -3 -11 -14 0 0.056 $ 9,780,504.14
SLZ Sultan Resources -4 -9 4 104 0.255 $ 17,731,269.20
LEG Legend Mining -4 9 19 -4 0.125 $ 344,391,965.13
MOH Moho Resources -4 -1 -22 3 0.073 $ 7,745,655.15
BAR Barra Resources -5 -5 -16 24 0.021 $ 14,229,770.12
EUR European Lithium -5 11 22 15 0.06 $ 57,904,007.45
S2R S2 Resources -5 -15 7 46 0.145 $ 44,084,765.06
RFR Rafaella Resources -5 -10 38 25 0.095 $ 15,292,811.49
GBR Greatbould Resources -5 4 107 330 0.095 $ 33,531,766.30
AZS Azure Minerals -5 -5 -65 240 0.265 $ 83,183,144.67
HAS Hastings Tech Met -6 -11 14 33 0.16 $ 269,460,566.23
ALY Alchemy Resource -6 -6 -12 -4 0.015 $ 10,083,651.80
LIT Lithium Australia -6 -2 39 112 0.1125 $ 104,178,224.92
PAM Pan Asia Metals -6 21 4 0.145 $ 7,659,326.30
HXG Hexagon Energy -7 -11 37 58 0.082 $ 37,465,161.47
VML Vital Metals Limited -7 0 50 440 0.054 $ 224,328,586.54
TNG TNG Limited -7 -25 -29 29 0.066 $ 82,466,804.64
CLA Celsius Resource -7 -17 -15 225 0.039 $ 39,794,667.08
COB Cobalt Blue -8 3 183 209 0.34 $ 89,458,864.92
AOU Auroch Minerals -8 -25 14 200 0.165 $ 50,135,051.52
ESS Essential Metals -9 15 33 -5 0.105 $ 22,089,903.00
ADD Adavale Resource -9 40 82 469 0.091 $ 26,960,515.53
ADV Ardiden -9 0 -41 150 0.01 $ 21,493,542.16
CXO Core Lithium -9 9 198 456 0.25 $ 299,399,899.77
ORE Orocobre Limited -9 0 53 157 6.27 $ 2,329,950,147.44
GXY Galaxy Resources -9 1 75 263 3.63 $ 1,982,224,941.76
VMC Venus Metals Cor -10 9 -7 19 0.19 $ 28,704,949.77
CNJ Conico -10 -10 -18 300 0.028 $ 24,741,910.11
IXR Ionic Rare Earths -10 -4 30 271 0.026 $ 83,106,387.36
CZN Corazon -11 0 -43 -41 0.034 $ 7,106,895.04
AML Aeon Metals . -11 29 -29 2 0.085 $ 58,270,996.52
ESR Estrella Res -11 12 -52 511 0.055 $ 53,720,333.18
CHN Chalice Mining -13 2 101 748 7.8 $ 3,055,813,632.33
MAN Mandrake Res -15 29 147 912 0.2125 $ 81,832,301.10
BUX Buxton Resources -20 22 54 25 0.1 $ 14,966,097.52

 

INFINITY LITHIUM (ASX:INF) +42%

The beleaguered stock has clawed back a portion of the massive losses suffered when its San Jose lithium project permit application in Spain was cancelled.

The Infinity share price is still down 52% since early April.

AUSTRALIAN MINES (ASX:AUZ) +37%

Nickel-cobalt project developer AUZ has identified a potential copper-gold porphyry at the ‘Flemington’ project, located in the Lachlan Fold of NSW.

The main exploration focus at Flemington is its growing cobalt-scandium-nickel resource, but this discovery could add another string to the company’s bow.

Australian Mines says this anomaly sits in the same rocks (age and type) as the tier one ‘Northparkes’ and ‘Cadia East’ mines nearby.

A field reconnaissance program of the IP anomaly is underway, “with the intention of undertaking a reverse circulation (RC) drill program over this emerging copper-gold target zone from next month”.

FIREFINCH (ASX:FFX) +23%

Gold focussed Firefinch is due to come out of a trading halt over the next couple of days to announce a development partner for its advanced Goulamina hard rock lithium project in Mali.

Results of a Definitive Feasibility Study (DFS) in October 2020 placed Goulamina among the world’s highest quality and largest undeveloped lithium deposits, Firefinch says.

The feasibility study revealed a pretty good set of numbers with a pre-tax net present value of $1.7bn and a reasonably low all-in cost of about $313 a tonne.

Since completion of the Goulamina DFS, there have been unsolicited expressions of interest in Goulamina relating to partnership and offtake opportunities, the company says.

“We genuinely believe there is no value for the lithium reflected at all in our stock price at the minute,” says Firefinch managing director Michael Anderson.

ARDEA RESOURCES (ASX:ARL) +23%

Has Ardea made a significant nickel discovery in WA?

Last week, the stock announced a semi-massive nickel sulphide hit of 1.1m @ 4.78% Ni, 0.16% Cu, 0.47g/t Pt, 0.20g/t Pd from 366.9m at ‘Emu Lake’, 70km from Kalgoorlie.

Data shows a potential channel of thick nickel sulphides below this drillhole, the company says.

“The available geophysics is showing there is potential for such a channel to exist below AELD0002 which could extend for a considerable length in a similar fashion to the Silver Swan channel,” managing director Andrew Penkethman says.

“It is interesting to note that earlier surface EM surveys have not been able to detect these sulphides, demonstrating the potential to open up a previously untested, albeit deeper, search space at Emu Lake.”

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