On the back of Christmas Eve, ASX closed 0.5 percent higher, but Australian shares were lower after Nasdaq fell, base metals drifted lower, and oil prices slid in the morning session. However, worldwide lithium compounds and metals consumption are expected to achieve an 18% CAGR between 2017 and 2022. In this scenario, four stocks came under the discussion from the much in demand sector of metals and mining which is an area of investment for investors looking to diversify. Let’s look at these stocks one by one
PILBARA MINERALS LIMITED (ASX: PLS) – The company lately advised that all resolutions proposed at the company’s annual general meeting were passed on a poll and without amendment. There is further production growth proposed based on customer demand in offtake. Through a jointly owned lithium chemicals plant future participation in the rapidly developing Korean lithium-ion battery market is underway. The company completes the delivery of a positive DFS for the Stage 2, 5Mtpa Pilgangoora expansion project, with exceptional financial outcomes and robust economics. The stock price surged up by 6.897% to trade at $0.620 with the increase in production, and the market cap is at $1.01 billion.
ALTURA MINING LIMITED (ASX: AJM) – All resolutions put to the meeting were passed on a show of hands by the required majorities at the 2018 Annual General Meeting of Altura Mining Limited held earlier in November. With the project delivery sequence and to make the best of the rapidly growing global lithium market, Altura Lithium is in a competitive position. As at the first quarter of FY 19 (September 30, 2018) the cash and cash reserves are at $10.5 million. The company has negative earnings per share (EPS) of -0.007 AUD which reflects a strain on profit side. The stock price surged up by 7.143% to trade at $0.150 with the increasing production, and the market cap is currently at $254.85 million.
AUSTRALIAN VANADIUM LIMITED (ASX: AVL) – With further drilling for pilot study scheduled to commence on January 2019, the company discusses AVL’s Maiden Ore Reserve and Prefeasibility Study with proactive investors. The company announced that strong vanadium market fundamentals support immediate progression and positive outcomes to a Definitive Feasibility Study. The company has funding in place to start the DFS which includes cash at bank of $5.3M at time of reporting. The revenue assumptions used are A$16.57/kg for nickel and A$7.95/kg for copper with a 65% payability assumed for base metals. The stock price was down by 5% to trade at $0.019 with the recent release from ORE, and the market cap is currently at $34.5 million.
SPECIALITY METALS INTERNATIONAL LIMITED (ASX: SEI) – To enable the purchase of the Mt Carbine Quarry and Mining Leases, ML4867 and ML 4919 and for a conditional participation for the staged development of its Mt Carbine Tungsten Project by the company through alternative financial instruments, the company is in advanced negotiations with Cronimet Holding GmbH. Defining the delivery of tungsten concentrate from the Mt Carbine Tungsten Project, Cronimet holding will provide a cash advance of US$3.5 million which is approx. AUD$4.9 million, by way of an agreement. The stock is under the suspended status, and the last traded price was up by 7.692% to trade at $0.014, and the market cap is currently at $34.5 million.
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