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High Voltage: Patience … lithium prices could be in the toilet for a while
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Each week our High Voltage column wraps all the news driving ASX battery metals stocks with exposure to lithium, cobalt, graphite, manganese and vanadium.
INDUSTRY FOCUS
All long-suffering battery metals investors want to know when lithium prices are going to recover. The real answer is that no one knows, and even the best estimates are just educated guesses.
What we do know is that spodumene producer Mineral Resources (ASX:MIN) told investors on Friday that it was selling concentrate for $US520.92/t ($757.74) in the December quarter; a fall of $US88/t on the prior quarter.
It’s also $US550/t less than the price Mineral Resources fetched in late 2018, which gives you a sense of how dismal things are right across the board.
S&P Global reckons that the “oversupply of lithium chemical compounds that forced prices down in 2019 should persist in 2020 as the electric vehicle revolution will not accelerate in tandem with recent — and upcoming — increases in supply”.
According to forecasts from September, the world’s total output should reach 560,000 tonnes of LCE in 2019 and exceed 800,000 tonnes in 2020, S&P says.
But longer term, 2020 could prove a decisive year for lithium hopefuls.
“According to several market analysts, 2020 will be a key year for the future long-term lithium supply,” S&P says.
“If some new projects don’t find the required financing in the coming months, the current oversupply is likely to suddenly shift into shortage in a few years as electric vehicles spread out globally.”
SMALL CAP HIGHLIGHTS
Of the companies on our list, 66 lost ground, 40 were ahead and 43 were steady this week.
Lithium Australia (ASX:LIT) +50%
Market Cap: $43m
On Monday, New York fund Lind Partners invested $6.3m into the diversified battery play, sending the stock on a crazy run.
Unlike other lithium small caps, Lithium Australia wants to make money in three ways — by producing advanced battery cathode powders, selling storage batteries in JV with a Chinese firm, and recycling old batteries through its Envirostream subsidiary.
“We have been following Lithium Australia since 2013,” Lind boss Jeff Easton says.
“In that time, we have seen Lithium Australia evolve from an explorer to a diversified battery and battery minerals company with three distinct complimentary business units with excellent commercial potential.”
Prospect Resources (ASX:PSC) +36%
Market Cap: $39m
On Friday, advanced African lithium explorer Prospect released an updated definitive feasibility study for its flagship Arcadia project in Zimbabwe, which the company calls ‘robust’.
‘Robust’ is the most criminally overused, meaningless superlative in small cap resources land.
But in this case the robust hat actually fits. Among other things, Arcadia would cost $US162m to build (pretty good) and boast an internal rate of return of 71 per cent, pretax (that’s very, very good).
The same day it signed an initial MOU with global energy company Uranium One over a potential investment or off-take agreement. And then on Monday Prospect locked down an all-important power supply agreement for the project.
Whatta week.
Finally — a handful of major lithium producers had a rare win despite the depressing near-term outlook; Orocobre (ASX:ORE) +15%, Galaxy Resources (ASX:GXY) +11%, and Mineral Resources (ASX:MIN) +10%.
Here’s a table of ASX battery metal stocks with exposure to lithium, cobalt, graphite, manganese and vanadium>>>
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
| Code | Name | 1 Week Return % | 1 Year Return % | Price [Monday intraday] | Market Cap |
|---|---|---|---|---|---|
| LIT | LITHIUM AUSTRALIA | 50 | -42 | 0.071 | $ 24,379,732.00 |
| SBR | SABRE RESOURCES | 50 | -57 | 0.003 | $ 2,531,151.00 |
| PSM | PENINSULA MINES | 50 | -14 | 0.003 | $ 2,033,744.13 |
| CZN | CORAZON MINING | 50 | -50 | 0.004 | $ 4,076,721.25 |
| PSC | PROSPECT RESOURCES | 36 | -35 | 0.17 | $ 31,853,488.00 |
| LCD | LATITUDE CONSOLIDATED | 23 | -11 | 0.016 | $ 4,402,864.00 |
| RML | RESOLUTION MINERALS | 17 | -39 | 0.049 | $ 5,334,480.50 |
| ORE | OROCOBRE | 15 | -31 | 2.65 | $ 667,279,104.00 |
| AZI | ALTA ZINC | 14 | 76 | 0.008 | $ 17,617,190.00 |
| LPD | LEPIDICO | 13 | 8 | 0.016 | $ 66,055,028.00 |
| THR | THOR MINING | 13 | -68 | 0.009 | $ 9,689,822.00 |
| GXY | GALAXY RESOURCES | 11 | -61 | 0.91 | $ 352,152,224.00 |
| CXO | CORE LITHIUM | 11 | -40 | 0.037 | $ 28,453,124.00 |
| PGM | PLATINA RESOURCES | 11 | -65 | 0.021 | $ 6,362,382.50 |
| MIN | MINERAL RESOURCES | 10 | 23 | 16.97 | $ 3,100,754,944.00 |
| GNM | GREAT NORTHERN MINERALS | 10 | -69 | 0.011 | $ 4,163,230.00 |
| KAI | KAIROS MINERALS | 10 | -56 | 0.011 | $ 11,216,403.00 |
| BUX | BUXTON RESOURCES | 10 | -39 | 0.079 | $ 10,340,213.00 |
| CRL | COMET RESOURCES | 10 | -18 | 0.023 | $ 6,808,000.00 |
| SYR | SYRAH RESOURCES | 9 | -72 | 0.45 | $ 181,936,944.00 |
| NVA | NOVA MINERALS | 9 | 85 | 0.037 | $ 34,485,264.00 |
| CHN | CHALICE GOLD MINES | 9 | 58 | 0.195 | $ 49,332,264.00 |
| TON | TRITON MINERALS | 8 | -11 | 0.039 | $ 43,109,300.00 |
| BAT | BATTERY MINERALS | 8 | -70 | 0.0065 | $ 7,908,549.50 |
| AGY | ARGOSY MINERALS | 8 | -51 | 0.081 | $ 80,382,672.00 |
| SVM | SOVEREIGN METALS | 8 | 40 | 0.095 | $ 34,142,872.00 |
| CLA | CELSIUS RESOURCES | 8 | -81 | 0.013 | $ 9,843,835.00 |
| MLL | MALI LITHIUM | 8 | -64 | 0.071 | $ 21,579,672.00 |
| LTR | LIONTOWN RESOURCES | 8 | 277 | 0.085 | $ 138,906,784.00 |
| HIP | HIPO RESOURCES | 6 | 0 | 0.018 | $ 6,957,188.00 |
| EUC | EUROPEAN COBALT | 6 | -57 | 0.018 | $ 13,710,552.00 |
| PLL | PIEDMONT LITHIUM | 5 | 0 | 0.11 | $ 85,614,936.00 |
| BAR | BARRA RESOURCES | 5 | -27 | 0.022 | $ 13,123,346.00 |
| ASN | ANSON RESOURCES | 4 | -59 | 0.028 | $ 17,398,892.00 |
| AML | AEON METALS | 3 | -61 | 0.1 | $ 64,710,692.00 |
| BYH | BRYAH RESOURCES | 2 | -53 | 0.042 | $ 4,337,575.00 |
| AVZ | AVZ MINERALS | 2 | -42 | 0.045 | $ 103,686,680.00 |
| SEI | SPECIALITY METALS INTERNATIONAL | 2 | 390 | 0.052 | $ 52,084,672.00 |
| NMT | NEOMETALS | 1 | -6 | 0.19 | $ 103,443,264.00 |
| SO4 | SALT LAKE POTASH | 1 | 52 | 0.73 | $ 188,706,384.00 |
| RLC | REEDY LAGOON | 0 | -33 | 0.004 | $ 1,609,086.88 |
| AYR | ALLOY RESOURCES | 0 | -50 | 0.002 | $ 3,133,016.00 |
| DHR | DARK HORSE RESOURCES | 0 | -40 | 0.003 | $ 7,103,779.00 |
| EUR | EUROPEAN LITHIUM | 0 | -30 | 0.08 | $ 49,347,656.00 |
| RIE | RIEDEL RESOURCES | 0 | -44 | 0.01 | $ 4,180,697.00 |
| BDI | BLINA MINERALS | 0 | 0 | 0.001 | $ 5,454,882.50 |
| SUH | SOUTHERN HEMISPHERE MINING | 0 | -40 | 0.027 | $ 2,485,875.75 |
| RNU | RENASCOR RESOURCES | 0 | -39 | 0.011 | $ 12,753,668.00 |
| SI6 | SIX SIGMA METALS | 0 | -20 | 0.004 | $ 2,580,012.50 |
| AEE | AURA ENERGY | 0 | -72 | 0.005 | $ 6,619,703.00 |
| DTM | DART MINING | 0 | -29 | 0.1 | $ 5,351,910.50 |
| CZR | COZIRON RESOURCES | 0 | -36 | 0.007 | $ 14,581,359.00 |
| AMD | ARROW MINERALS | 0 | -43 | 0.008 | $ 5,863,992.00 |
| WCN | WHITE CLIFF MINERALS | 0 | -49 | 0.005 | $ 2,351,749.50 |
| CLQ | CLEAN TEQ | 0 | -48 | 0.205 | $ 156,756,640.00 |
| JMS | JUPITER MINES | 0 | 17 | 0.26 | $ 479,952,800.00 |
| LML | LINCOLN MINERALS | 0 | -29 | 0.005 | $ 2,874,918.50 |
| ANW | AUS TIN MINING | 0 | -88 | 0.002 | $ 5,090,103.50 |
| PUR | PURSUIT MINERALS | 0 | -79 | 0.006 | $ 1,981,318.63 |
| MTH | MITHRIL RESOURCES | 0 | 14 | 0.008 | $ 3,923,113.75 |
| BSM | BASS METALS | 0 | -57 | 0.006 | $ 16,859,248.00 |
| ADV | ARDIDEN | 0 | -33 | 0.003 | $ 5,071,560.50 |
| FEL | FE | 0 | -18 | 0.014 | $ 6,841,822.50 |
| MLS | METALS AUSTRALIA | 0 | -50 | 0.0015 | $ 4,811,029.00 |
| PNN | PEPINNINI LITHIUM | 0 | -58 | 0.002 | $ 2,867,196.25 |
| IEC | INTRA ENERGY | 0 | -40 | 0.006 | $ 2,326,344.25 |
| CFE | CAPE LAMBERT RESOURCES | 0 | -78 | 0.004 | $ 4,417,896.00 |
| HWK | HAWKSTONE MINING | 0 | -67 | 0.006 | $ 4,891,908.00 |
| MTB | MOUNT BURGESS MINING | 0 | -40 | 0.003 | $ 1,596,388.13 |
| FGR | FIRST GRAPHENE | 0 | -15 | 0.145 | $ 66,460,812.00 |
| KSN | KINGSTON RESOURCES | 0 | -9 | 0.14 | $ 26,488,848.00 |
| ARE | ARGONAUT RESOURCES | 0 | -82 | 0.004 | $ 6,313,522.50 |
| GLN | GALAN LITHIUM | 0 | -40 | 0.145 | $ 23,685,212.00 |
| SVD | SCANDIVANADIUM | 0 | -67 | 0.007 | $ 2,463,062.75 |
| EGR | ECOGRAF | 0 | -42 | 0.075 | $ 22,422,548.00 |
| BSX | BLACKSTONE MINERALS | 0 | 8 | 0.13 | $ 23,966,434.00 |
| COB | COBALT BLUE | 0 | -38 | 0.13 | $ 18,737,816.00 |
| MQR | MARQUEE RESOURCES | 0 | -9 | 0.058 | $ 3,689,386.00 |
| LPI | LITHIUM POWER INTERNATIONAL | 0 | -2 | 0.235 | $ 63,003,336.00 |
| HNR | HANNANS | 0 | -18 | 0.009 | $ 17,891,590.00 |
| IDA | INDIANA RESOURCES | 0 | -50 | 0.025 | $ 4,587,367.50 |
| GME | GME RESOURCES | 0 | -30 | 0.052 | $ 26,324,632.00 |
| KTA | KRAKATOA RESOURCES | 0 | 42 | 0.037 | $ 6,475,000.00 |
| TNG | TNG | -1 | -22 | 0.09 | $ 102,333,608.00 |
| HAV | HAVILAH RESOURCES | -1 | -43 | 0.092 | $ 23,456,970.00 |
| INF | INFINITY LITHIUM | -2 | -2 | 0.061 | $ 13,965,579.00 |
| ARL | ARDEA RESOURCES | -2 | 32 | 0.6 | $ 62,169,232.00 |
| PLS | PILBARA MINERALS | -2 | -64 | 0.26 | $ 567,044,608.00 |
| OMH | OM HOLDINGS | -2 | -62 | 0.495 | $ 358,232,320.00 |
| BKT | BLACK ROCK MINING | -2 | 34 | 0.046 | $ 29,560,354.00 |
| POS | POSEIDON NICKEL | -2 | 7 | 0.047 | $ 121,564,288.00 |
| TLG | TALGA RESOURCES | -2 | 9 | 0.445 | $ 103,294,264.00 |
| INR | IONEER | -3 | 6 | 0.19 | $ 318,940,320.00 |
| DGR | DGR GLOBAL | -3 | -44 | 0.076 | $ 47,215,004.00 |
| VMC | VENUS METALS | -3 | 11 | 0.195 | $ 27,194,162.00 |
| AJM | ALTURA MINING | -3 | -69 | 0.053 | $ 136,292,640.00 |
| E25 | ELEMENT 25 | -3 | -6 | 0.16 | $ 14,725,164.00 |
| DEV | DEVEX RESOURCES | -4 | 64 | 0.074 | $ 14,086,867.00 |
| GED | GOLDEN DEEPS | -4 | -33 | 0.024 | $ 6,665,374.50 |
| CAZ | CAZALY RESOURCES | -5 | 95 | 0.022 | $ 7,614,492.00 |
| JRV | JERVOIS MINING | -5 | -22 | 0.18 | $ 118,702,040.00 |
| PM1 | PURE MINERALS | -6 | 21 | 0.017 | $ 7,539,335.50 |
| ZNC | ZENITH MINERALS | -6 | -33 | 0.051 | $ 13,141,442.00 |
| FFR | FIREFLY RESOURCES | -6 | -83 | 0.05 | $ 3,917,297.75 |
| BPL | BROKEN HILL PROSPECTING | -6 | -27 | 0.019 | $ 4,152,085.00 |
| NWC | NEW WORLD RESOURCES | -6 | -16 | 0.016 | $ 13,970,999.00 |
| LI3 | LITHIUM CONSOLIDATED | -6 | -49 | 0.029 | $ 4,135,206.25 |
| MNS | MAGNIS ENERGY TECHNOLOGIES | -6 | -69 | 0.093 | $ 60,437,216.00 |
| PAN | PANORAMIC RESOURCES | -6 | -7 | 0.335 | $ 215,897,776.00 |
| AUZ | AUSTRALIAN MINES | -6 | -63 | 0.016 | $ 51,671,136.00 |
| NXE | NEW ENERGY MINERALS | -7 | -71 | 0.014 | $ 2,167,023.75 |
| KOR | KORAB RESOURCES | -7 | -44 | 0.011 | $ 4,440,793.00 |
| NZC | NZURI COPPER | -7 | 0 | 0.28 | $ 79,894,480.00 |
| JRL | JINDALEE RESOURCES | -7 | 4 | 0.28 | $ 10,200,977.00 |
| LKE | LAKE RESOURCES | -7 | -72 | 0.025 | $ 13,238,302.00 |
| TMT | TECHNOLOGY METALS AUSTRALIA | -8 | -68 | 0.12 | $ 11,382,042.00 |
| PIO | PIONEER RESOURCES | -8 | -14 | 0.012 | $ 18,105,106.00 |
| MLM | METALLICA MINERALS | -8 | -57 | 0.012 | $ 3,888,569.00 |
| CUL | CULLEN RESOURCES | -8 | -45 | 0.012 | $ 2,273,578.00 |
| MEI | METEORIC RESOURCES | -8 | 292 | 0.035 | $ 51,597,272.00 |
| MTC | METALSTECH | -8 | 13 | 0.034 | $ 3,976,432.25 |
| VML | VITAL METALS | -8 | 22 | 0.012 | $ 23,568,724.00 |
| CHK | COHIBA MINERALS | -8 | -27 | 0.012 | $ 7,310,756.50 |
| VRC | VOLT RESOURCES | -9 | -56 | 0.01 | $ 16,137,406.00 |
| SYA | SAYONA MINING | -9 | -44 | 0.01 | $ 20,418,208.00 |
| AVL | AUSTRALIAN VANADIUM | -9 | -64 | 0.01 | $ 25,528,020.00 |
| MZZ | MATADOR MINING | -10 | 12 | 0.24 | $ 22,749,026.00 |
| LRS | LATIN RESOURCES | -10 | -88 | 0.008 | $ 1,401,292.13 |
| HRZ | HORIZON MINERALS | -10 | -37 | 0.088 | $ 38,517,768.00 |
| 4CE | FORCE COMMODITIES | -10 | -19 | 0.013 | $ 6,691,857.00 |
| GBE | GLOBE METALS AND MINING | -11 | -6 | 0.017 | $ 7,920,680.50 |
| MCT | METALICITY | -11 | -75 | 0.004 | $ 2,892,839.75 |
| SRK | STRIKE RESOURCES | -11 | -8 | 0.048 | $ 9,025,250.00 |
| EMH | EUROPEAN METALS | -11 | -19 | 0.29 | $ 43,734,580.00 |
| BEM | BLACKEARTH MINERALS | -12 | -39 | 0.052 | $ 5,796,431.50 |
| TKL | TRAKA RESOURCES | -13 | -67 | 0.007 | $ 2,803,240.75 |
| HXG | HEXAGON ENERGY MATERIALS | -13 | -58 | 0.06 | $ 17,546,004.00 |
| VR8 | VANADIUM RESOURCES | -13 | -70 | 0.026 | $ 10,105,491.00 |
| GPX | GRAPHEX MINING | -15 | -22 | 0.14 | $ 16,153,233.00 |
| AXE | ARCHER MATERIALS | -15 | 53 | 0.115 | $ 24,636,472.00 |
| POW | PROTEAN ENERGY | -17 | -75 | 0.006 | $ 1,557,186.25 |
| RMX | RED MOUNTAIN MINING | -17 | -29 | 0.005 | $ 4,390,184.00 |
| CNJ | CONICO | -18 | -49 | 0.009 | $ 3,459,584.00 |
| WKT | WALKABOUT RESOURCES | -20 | 126 | 0.215 | $ 63,512,180.00 |
| WML | WOOMERA MINING | -21 | -78 | 0.015 | $ 2,014,379.63 |
| TAR | TARUGA MINERALS | -24 | -68 | 0.013 | $ 2,597,475.75 |
| MRR | MINREX RESOURCES | -25 | -55 | 0.009 | $ 862,899.56 |
| BOA | BOADICEA RESOURCES | -26 | 11 | 0.2 | $ 11,119,149.00 |
| SRN | SUREFIRE RESOURCES | -33 | -67 | 0.003 | $ 1,256,307.25 |
