Resources Top 5: Investors are mad for these lithium, graphite, vanadium, and nickel-cobalt explorers
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Here are your top ASX small cap resources winners in morning trade Tuesday, February 9.
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This red hot battery metals play is up ~480 per cent in 2021.
Ecograf is building a 20,000 tonnes a year battery graphite plant in WA — the first of its kind outside China.
While graphite demand is primarily driven by the steel market, rapid growth in electric vehicle production is expected to drive a big uptick in demand and pricing over the next few years.
There is 10 times more graphite than lithium in a lithium-ion battery, with each EV requiring ~55kg of flake graphite to make the battery anode.
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South African vanadium hopeful Vanadium Resources (ASX:VR8) hopes to become one of the world’s lowest capex and opex producers.
A pre-feasibility study on its high grade Steelpoortdrift vanadium project in now underway, after a less-detailed scoping study threw up some very good numbers.
They include pre-tax earnings of up to $US1.9 billion, low cash operating costs of $3.07/lb V2O5, and just $187m in construction costs.
The company also says stable trading in the vanadium market continues “with demand increasing. Long term demand for vanadium and vanadium products remains strong.”
The tiny PNG explorer has expanded its nickel portfolio by acquiring a project in the African country of Tanzania.
This is a high risk, high reward play.
The Tanzanian KNP project is prospective for nickel, cobalt and manganese, the company says. The area has not been subject to modern exploration.
An initial work program involves locating and sampling historical pits dug during colonial regime and systematic soil sampling.
RMI is up ~420 per cent over the past nine months.
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Last week lithium play EMH raised ~$7m via private placement.
The cash means EMH is fully funded to a final investment decision at its Cinovec project in the Czech Republic — the largest hard rock lithium deposit in Europe.
This ~$150m market cap stock has been a beneficiary of the battery metals resurgence, up 125 per cent over the past three months.
Gold focused explorer will demerge its advanced Goulamina lithium project in Mali into a separate ASX listed company in 2021 “to realise its full value”.
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.
A sample of ASX lithium companies is up approximately 260 per cent since 30 October 2020, it says.
“The creation of a new lithium focussed company in a strong lithium market is the optimal way to realise the value for shareholders,” Firefinch says.
“Since completion of the Goulamina DFS, there have been unsolicited expressions of interest in Goulamina relating to partnership and offtake opportunities.
“A number of these parties are currently in a data room and in preliminary discussions with the Company – these will be progressed in parallel with the proposed demerger.”
Firefinch – formerly Mali Lithium, formerly Birimian – was serious about developing Goulamina before ongoing weak sentiment in the battery metals space saw them pivot to gold.