Monsters of Rock: Will this lithium stock backed by Chris Ellison become a new monster?
We’re edging closer to that time of year where we can take stock and be thankful for all 2022 has given us which, quite frankly, isn’t a lot.
Between inflation, rate rises, war, a breakdown in global diplomatic relations, stupid energy prices and the death of Boston Celtics champion Bill Russell, this year’s been a real stinker.
Unless you just freaking love lithium stocks, in which case you’re probably reading this from a private island off the Iberian coast, soaking in the sun in luxury far from where the taxman will never find you.
It’s also getting just a little close to Monster v Mouse time, where we find out which companies have won the resources sector’s game of snakes and ladders.
Today a late candidate for monster status announced itself, given a Bob Cousy quality assist by a GOAT of the lithium game.
That’s something GL1 and its chairman Warwick Hazeldine, formerly head spinner at Perth PR mob Cannings Purple, was happy to yell out with a megaphone this morning.
It is now worth around $460 million, having listed in May last year with a market cap of ~$30 million.
Shareholders have been diluted a bit since then, primarily due to a $30 million placement earlier this year which brought Chris Ellison’s MinRes — currently believed to be reviewing a spinoff of its multi-billion dollar lithium business — into the fold.
A $12.6 million purchase on market has given MinRes a now 8% stake in GL1, with Global Lithium’s JV partner in the Manna project, Breaker Resources (ASX:BRB) selling its stake on-market for $15 million to provide working capital.
GL1 held its gains as the broader mining market was sold down over the afternoon session as unemployment data showed the jobless rate rose, slightly, for the first time in 10 months.
Fellow lithium miner Pilbara Minerals (ASX:PLS), trading near record highs, remained strong gaining more than 2%.
Thermal coal prices are at record levels, above US$450/t, with Westpac this week lifting its year end forecast by over 20% to US$425/t.
Energy stocks lifted the ASX to a 0.21% gain, with the sector up 3.72%, as materials sagged 0.37%.