5 Lithium Stocks – GXY, PLS, KDR, ORE, and LIT
Helped by the surge in residential battery installations supporting rooftop solar systems, Australia has been a world leader in terms of total power of storage batteries installed in 2017. In the past few days with the revival of lithium sector, the stocks that seemed to be a little volatile but primarily back on the path towards upward momentum with most of the selling apparently over by June, saw another drop in prices lately with varied opinions still prevailing in the industry on lithium prices.
Galaxy Resources Ltd (ASX: GXY) is a key lithium player under stock market tips that Australia has seen since last 2 years that has moved up 53.5% in last one year but fell by 16.22% in last six months, as at August 01, 2018. The stock was trading at a market price of $2.840, as at August 01, 2018. Galaxy Resources is amongst one of the top five battery minerals producers to be shorted on the ASX having more than 13 percent of their registered shares sold short. For an aggregate 45,761 dmt of product sold, a total of 3 shipments of lithium concentrate were completed during the quarter. The market capitalization of Galaxy stands at $1.16 billion. The key thing in its kitty has been that the POSCO transaction that is on track while key project Mt Cattlin completed 3 shipments in June quarter.
Pilbara Minerals Ltd (ASX: PLS) traded at a market price of $0.885 on August 01, 2018, with a daily price change of 0.568% and had dipped about 6.35% in last six months but recovered about 1.73% in last one month. It is on track to become a major global lithium producer, with pathway to full production clear and commissioning on track. Construction of the Stage 1 concentrator is largely completed. Now comprising 213 million tons grading 1.32% spodumene and 116 ppm Tantalum Oxide, there is a 36% increase in tonnage and increase in grade to the Pilgangoora Mineral Resource. The cash balance is about A$120 million as at June 30, 2018 with no debt.
Kidman Resources Limited (ASX: KDR), which is into exploration and development of base metals and precious metals, traded at a market price of $1.470 as at August 01, 2018. The stock has seen a performance change of 160% over the past 12 months, as at August 01, 2018. A binding, fixed-price, take-or-pay lithium hydroxide offtake agreement with Tesla was recently entered by the company. Kidman was recently raised to the S&P/ASX All Australian 200 Index. Its key refinery will initially produce solely lithium hydroxide, which is agreed by both Kidman and its partner SQM for the Mt Holland JV project, after the announcement of JV lithium refinery location. With conversion of KDR options, the company’s cash balance is increased by $7.1 million lately.
Orocobre Ltd (ASX: ORE) with focus on developing Lithium/Potash resources, was seen trading at a market price of $4.550 with a performance change of over 40% over the past 12 months as at August 01, 2018. Record 12,470 tons, which is up 5% year on year (YoY), has been production for fiscal year as at June 30, 2018. The total sales volume is of 11,837 tons, up 29% YoY as per the average price received for fiscal 2018 being a new high of US $12,578/ton. Also, up 24% on the previous year, the total sales revenue for the year to 30 June 2018 was a record US $148.9 million. As part of stage 2 expansion program, worth US$40 million commenced with the construction of roads, ponds, and camp infrastructure. This expansion will bring Olaroz total production capacity to 42,500tpa by adding 25,000 tons per annum (tpa) of lithium carbonate.
Lithium Australia NL (ASX: LIT) is a junior lithium miner and its stock was seen to be trading at $0.115 as at August 1, 2018 and has seen a performance change of negative 11.54% in last five days post a spike in one month. The market capitalization of the company is $50.08 million. Lithium Australia NL acquired Very Small Particle Company (VSPC) and the laboratory under the operations carries out pilot production operations and the facilities are based in Brisbane, Queensland that are now fully re-commissioned, and produce lithium-iron-phosphate (LFP) battery cathode material. Strong interest in VSPC’s 4th-generation LFP cathode material was shown by International battery makers earlier. With positive results of drilling completed at the Sadisdorf (Germany) lithium/tin project, and acquisition of Moolyella project recently taken place, the stock is another watch in the sector.
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