High Voltage: ‘Inevitable’ – lithium prices are on the rise again
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Our High Voltage column wraps all the news driving ASX stocks with exposure to lithium, cobalt, graphite, nickel, rare earths, manganese, magnesium, and vanadium.
Battery metals expert Rodney Hooper says new lithium prices highs “are just around the corner” as demand kicks up a gear.
While lithium prices have held up remarkably well over the past few months as other metals prices have tumbled, the next leg up could be just around the corner.
In S&P Platt’s latest market commentary battery grade carbonate was assessed at Yuan 480,500/t ($US70,785/t) on August 12; up Yuan 500/t ($US73/t) for the week.
Some trades were heard at Yuan 500,000/t – or $US73,650/t — Hooper says in a tweet.
The inevitable is happening – #lithium prices are rising on the back of demand. Some trades were heard at 500k RMB. Spod con & industrial carb tight, so hydroxide price is closing the gap. New price highs are likely just around the corner. pic.twitter.com/6pEyu55nFp
— Rodney Hooper (@RodneyHooper13) August 15, 2022
Gone are the carefree days of 2021 when any dog stock/spinout could list on the ASX and immediately swim in green. 2022 has been a desolate wasteland for IPOs … unless you’re a battery metals stock.
A significant chunk of the 22 stocks currently trading above their IPO price in 2022 are battery or critical minerals explorers, led by Oceana Lithium (ASX:OCN), NiCo (ASX:NC1) and Lithium Plus Minerals (ASX:LPM).
Hoping to join the bourse soon is AIM-listed Atlantic Lithium, which lodged its ASX prospectus earlier this week.
With an existing market cap of around $350m, Atlantic’s main game is the 30Mt Ewoyaa lithium project in Ghana, where it is funded through to production via a co-production agreement with fellow mine developer Piedmont Lithium (ASX:PLL).
Piedmont has the right to earn up to 50% at the project level for 50% SC6 spodumene concentrate offtake at market rates by solely funding US$17m towards studies and exploration and US$70m towards mine capex.
A project pre-feasibility study is due in the third calendar year quarter of 2022.
The company expects to raise ~$13m by selling 22.85m shares at 58c each.
Atlantic Resources Charging The Change
“We are set to establish West Africa’s first lithium mine”
US$102m Fully Funded Ewoyaa Project to Production
— Atlantic Lithium (@AtlanticLithium) November 23, 2021
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.
The explorer may’ve got a boost from our must-read story on magnesium, which could see a doubling of demand in eight years.
In November, KOR pulled the pin on the planned sale of its increasingly valuable Winchester magnesium project in the Northern Territory.
This followed approaches from two separate groups expressing an interest in developing ‘Winchester’, and discussions with magnesium metal users and magnesium buyers, including car makers Fiat and Daimler.
In May 2022, KOR inked a non-binding deal to potentially supply magnesium metal from Winchester to Speira, a leading global manufacturer of advanced rolled aluminium/magnesium products.
The company is currently engaged in a scoping study evaluating the economics “of an environmentally friendly production method to produce sustainable, zero-carbon, green magnesium metal together with several additional sellable bonus products”.
This explorer acquired the early stage Northern Territory lithium project back in May.
Last week, initial desktop review works indicated there was high-grade lithium-gold across the site with rock chip samples returning 5.46% Li20, 2.27g/t gold, and 4.59g/t gold.
RAS has completed planning of an initial drilling program.
Last week, the stock formerly known as Altura Mining secured its second Nevada lithium project.
North Big Smoky “straddles structural features that can be traced on the surface and have been assessed to be a potential conduit for lithium mineralisation in sediments and brines”, it says.
Last quarter, the company drilled seven holes into its Mallina hard rock lithium project in the Pilbara. Results are pending.