Uncategorized
ASX Lithium News: Big guns PLS, MinRes and Albemarle……big producers remain bullish
Some of the globe’s biggest lithium guns are playing down headwinds. Meanwhile several ASX lithium stocks are in the thick … Read More
The post Eye on…
- Some of the globe’s biggest lithium producers are playing down market headwinds
- GreenTech, Wildcat and First Lithium are in the thick of ASX spod-hunting action
- OzAurum and Zenith also among the bourse’s bigger lithium gainers today
Lithium news roundup, Monday November 6.
The lithium price gloom
Let’s start with the lithium spot price… if we can actually call it that.
One of the closest data points we have for lithium pricing that’s accepted globally is Fastmarkets’ North Asian lithium prices – the agglomeration of spot sales across China, Japan and Korea – which, as Stockhead resources expert Josh Chiat noted the other day continue their malaise.
Per Friday Ground Breakers:
Lithium has most recently been trading around US$22,000/t according to Fastmarkets.
“That’s being dragged down by China, where lithium hydroxide and carbonate prices are trading slightly down at around US$20,800/t and US$22,000/t respectively”.
2023-11-03#Lithium Carbonate 99.5% Min China Spot
Price: $22,494.29
1 day: $-208.93 (-0.92%)
YTD: -69.48%#Spodumene Concentrate (6%, CIF China)Price: $2,070.00
1 day: $-15 (-0.72%)
YTD: -64.46%Sponsored by @SiennaResources $SIE $SNNAFhttps://t.co/EqbBegRFiF
— Lithium Price Bot (@LithiumPriceBot) November 3, 2023
As Fastmarkets reported last week, “Chinese lithium carbonate prices are down amid bearish sentiment and thin demand, with hydroxide prices flat”. Meanwhile, East Asian lithium prices are down on weak demand and consumer caution, and European and US lithium prices are also following the Asian downtrend, Fastmarkets continued.
But… never mind that, big producers remain bullish
As we noted last week in the High Voltage column, big gun Aussie lithium producer Pilbara Minerals (ASX:PLS) played down concerns in a recent investor call Q&A when asked if PLS had trouble selling spodumene on the spot market (just one part of the company’s overall strategy) in the most recent quarter:
“The demand is absolutely there for product,” he said. “It hasn’t been a case of, ‘We can’t move product’, and certainly none of our customers are not wanting product.
“It’s just been more a case of moderating pricing and contending with the question of, ‘What is the right price for the market?’. That’s where the shift has been.”
And, according to Reuters other major global lithium producers have similar thoughts and remain bullish on the long-term EV narrative despite the various headwinds out of China and apparent slowing pace of EV adoption along with “sluggish quarterly reports” from Albemarle, Pilbara Minerals, Livent and others.
“We see what’s happening now as road bumps, but certainly not a determinant for the long-term growth we have,” Eric Norris, head of Albemarle’s Energy Storage division, told investors on Thursday.
And Paul Graves, CEO of Livent (a supplier to BMW and Tesla), said: “We see (lithium) supply continuing to be the constraint on demand.”
Meanwhile Mineral Resources (ASX:MIN) reportedly described current market conditions for lithium as a “rebalancing” of supply chains and IGO (ASX:IGO) believes the industry’s slump is onlya “near term” issue.
EV battery prices are predicted to fall faster than forecast, as prices for lithium and other metals for batteries decline, according to Goldman Sachs Research. The price drop is expected to increase consumer demand for EVs. https://t.co/ngSBqZfqEe pic.twitter.com/iiC1hKWYKA
— Goldman Sachs (@GoldmanSachs) November 3, 2023
The era of mixed #lithium messages is upon us: @AlbemarleCorp says their 2023 price is: “only up ~15%” vs their prior estimate. Yet the author says lithium prices are down 60% in 2023. Which is it?
Ans: There isn’t “a lithium price”. https://t.co/KOelIApN79— Joe Lowry (@globallithium) November 2, 2023
In today’s important pre-mkt update for Subscribers: Powell’s pivot on int rates; why the Fed’s most aggressive int rate hiking campaign in 4 decades is now likely over; long duration growth stocks such as $TSLA poised for takeoff; $F and $GM ‘s decisions to pause EV expansion…
— Gary Black (@garyblack00) November 2, 2023
ASX What’s hot, what’s not today?
Charged up
OzAurum Resources (ASX:OZM) +31% (Up on no news)
GreenTech Metals (ASX:GRE) +17% (Up on… see below)
Zenith Minerals (ASX:ZNC) +15% (Up on no news)
Low on juice
Lodestar Minerals (ASX:LSR) -10%
Turning battery metal heads on the ASX today
GreenTech is moving quickly with its exploration programs at the Osborne JV in WA’s Pilbara region with a 1,500m diamond drilling program as it continues to reveal the true potential of its ground.
GreenTech’s Osborne JV is held with Artemis Resources Artemis Resources (ASX:ARV), with GreenTech commanding 51% and Artemis the rest.
The asset sits to the east of the Ruth Well nickel-copper project in WA’s Pilbara region, next door to Azure Minerals’ (ASX:AZS) monster Andover lithium discovery.
Our special report has more.
The hits just keep on coming for WC8. It’s up on the news its Pilbara-based Tabba Tabba lithium project near Port Hedland has delivered more exceptional results.
New assay results from the Leia pegmatite in the project’s Central Cluster have revealed Wildcat has hit 180m at 1.1% Li2O from 206m, adding further gravitas and proof that the company has a Tier-1 deposit under its boots.
The Leia pegmatite is now over 1.65km long, up to 180m wide, has been intersected to more than 350m vertical depth, and remains open laterally and at depth.
We’ve hit ???????????????? @ ????.????% ???????????????? at Leia Pegmatite in latest results from our Tabba Tabba #Lithium Project, WA, confirming it as a Tier-1 lithium deposit. Aggressive drilling continues, focusing on Leia, Chewy, and Boba. Further results pending.
https://t.co/bsnYzDGM0M #WC8 pic.twitter.com/Pu0exADM0k— Wildcat Resources (ASX:WC8) (@WildcatRes_WC8) November 5, 2023
The company notes that results are now pending for 34 holes from Leia with Wildcat completing roughly eight of those holes per week.
After the recent Liontown Albemarle/Rinehart tussle, and after SQM’s major move for Azure Minerals, the ASX lithium M&A scene is still frothy, still front and centre. And Aussie mining titan Mineral Resources (ASX:MIN) last week also came in hot for WC8.
The Chris Ellison-led mining giant has confirmed it’s now bought up almost a fifth of WC8, increasing its stake in the company to 19.85%.
First Lithium’s third hole at the Blakala prospect has hit three pegmatite intersections, providing confidence that the drill program is exploring the correct locations within the strike zone.
Our special report has more.
Pioneer Lithium has added another string to its bow with the acquisition of a greenfields property in northwest Ontario, nestled between Patriot Lithium’s (ASX:PAT) Dryden project and Canadian-listed Beyond Lithium’s Victory and Victory West projects.
Our special report has more.
QX Resources has returned some of the highest-grade samples of lithium ever recorded in the Pilbara, with grades of up to 3.8% lithium dioxide returned from rock chip samples at Turner River.
Our special report has more.
Pad construction has started at the site of Arizona Lithium’s first proposed direct lithium extraction facility at its Prairie project in Saskatchewan, Canada.
Our special report has more.
While GRE, AZL, QXR, PLN and FL1 are Stockhead advertisers, none of them sponsored this article.
The post Eye on Lithium: Big guns PLS, MinRes and Albemarle still bullish; OZM, GRE and ZNC lead gains appeared first on Stockhead.
