Lithium juniors shrug off oversupply fears; some make double-digit gains

While most junior Aussie lithium stocks continued to tread water on Tuesday, there were positive signs among a handful that made double-digit gains.

Of 36 lithium-related ASX stocks tracked by Stockhead, 17 were back in the green, nine held steady, and 10 lost ground. (See table below).

Lithium stocks opened the week in the red after Chilean heavyweight SQM said it would ramp up production to meet rising demand from the electric vehicle market.

A four-to-sixfold increase in SQM’s production could force lithium into oversupply by 2020.

Some stocks were looking slightly better on Tuesday after the initial shock of the potential oversupply died down and some junior players proved they still believe in the long-term story.

Cougar Metals (ASX:CGM) was the biggest lithium gainer. Its shares climbed 20 per cent to 1.2c on news it appointed a new general manager that would help fast-track its Ceara lithium project in Brazil and shop for new projects.

Code	Name	Change Jan 22-23	Price Jan 23	Price Jan 22	Market Cap
MQR	MARQUEE RESOURCES	-0.107142857143	0.5	0.56	13440000
TAW	TAWANA RESOURCES	0.0444444444444	0.47	0.45	227239856
LPI	LITHIUM POWER INTERNATIONAL	0.0224719101124	0.455	0.445	116017688
MZZ	MATADOR MINING LIMITED	-0.025	0.39	0.4	9540001
AGY	ARGOSY MINERALS	0.0405405405405	0.385	0.37	330593728
BOA	BOADICEA RESOURCES	0	0.23	0.23	11263025
MTC	METALSTECH	-0.0212765957447	0.23	0.235	22429670
EUR	EUROPEAN LITHIUM	-0.0444444444444	0.215	0.225	122563016
LKE	LAKE RESOURCES	0	0.205	0.205	47896820
PLL	PIEDMONT LITHIUM	0	0.18	0.18	99725464
LI3	LITHIUM CONSOLIDATED MINERAL	0.0357142857143	0.145	0.14	12596097
AOU	AUROCH MINERALS	0.1	0.11	0.1	8709606
DMI	DEMPSEY MINERALS	-0.0909090909091	0.1	0.11	4959900
SYA	SAYONA MINING	0.0759493670886	0.085	0.079	116528696
SRK	STRIKE RESOURCES	0	0.072	0.072	10464067
PSC	PROSPECT RESOURCES	0	0.066	0.066	105872464
LPD	LEPIDICO	0	0.062	0.062	178561296
NLI	NOVO LITIO	-0.0178571428571	0.055	0.056	20879174
KTA	KRAKATOA RESOURCES	0.130434782609	0.052	0.046	4600000
PNN	PEPINNINI LITHIUM	0.0212765957447	0.048	0.047	23968528
CAZ	CAZALY RESOURCES	-0.0212765957447	0.046	0.047	9208757
MCT	METALICITY	-0.0212765957447	0.046	0.047	23614638
RLC	REEDY LAGOON CORP	0.0952380952381	0.046	0.042	16716642
NVA	NOVA MINERALS	0	0.043	0.043	30611348
ARE	ARGONAUT RESOURCES	0	0.03	0.03	36291004
ADV	ARDIDEN	0.0769230769231	0.028	0.026	27208930
KSN	KINGSTON RESOURCES	0.0833333333333	0.026	0.024	24224884
HNR	HANNANS	0.0869565217391	0.025	0.023	45451268
JDR	JADAR LITHIUM	0	0.025	0.025	9738264
PM1	PURE MINERALS	0	0.023	0.023	6224468.5
ESR	ESTRELLA RESOURCES	0	0.023	0.023	9873516
PSM	PENINSULA MINES	0	0.015	0.015	10427079
CHK	COHIBA MINERALS	0	0.013	0.013	5667318.5
CGM	COUGAR METALS	0.2	0.012	0.01	9178027
DTM	DART MINING	-0.0909090909091	0.01	0.011	6989407
ADN	ANDROMEDA METALS	0.142857142857	0.008	0.007	6244193.5

Price changes for ASX-listed lithium stocks Jan 22-23

Krakatoa Resources (ASX:KTA) and Hannans (ASX:HNR), both jumped more than 13 per cent to 0.6c and 0.3c, respectively, on no news.

Sayona Mining (ASX:SYA) gained as much as 11.4 per cent after it revealed it had secured an option to acquire 12,000 hectares of lithium-prospective tenements in Quebec, Canada. By the closing bell it had edged back to 8.5c.

Sayona has had a good run in recent months, with its share price hitting a new 52-week high of 12c earlier in January.

Lithium is among the favoured battery metals, with demand driven by electronics and the electric vehicle uprising that is forecast to reach over 500 million vehicles by 2040 from 2 million currently.