While a lot has been happening in the lithium space these days, with many new/ junior players aiming to leverage from the booming battery industry; the following three players do stand a chance of being looked at.
ioneer Ltd (ASX: INR), previously Global Geoscience (ASX: GSC) is an Australian mineral explorer. It focuses exclusively on its flagship project Rhyolite Ridge Lithium-Boron Project in Nevada, USA. By extensively supplying boric acid and lithium carbonate across Asian and American territories, together accounting for circa 80% of global borates demand, the company is gradually making a transition into world’s emerging lithium-boron supplier. The company announced excellent results in its recent feasibility study of the US project.
However, INR stock performed poorly this year. In the last 12 months, the share price of the company decreased massively by 35.7 percent as on 14 December 2018. Share prices have tumbled down by over 57% over last 6 months.
Nonetheless, the company aims at capitalizing increasing lithium demand for lithium-ion batteries in environment friendly electric vehicles and boric acid demand across multiple consumer and industrial goods. The company’s stock offers an upside potential and investors may want to keep the stock in their watchlist.
Argosy Minerals Limited
Argosy Minerals Limited (ASX: AGY) is a major player in the lithium mining sector, banking upon its significant majority owned Argentina-based Rincon Lithium Project in Salta Province. The 77.5% owned project enjoys a favourable location within the world-renowned “Lithium Triangle”, world-class lithium resource base. The company aims to increase its stakes to 90% in its joint venture with Puna Mining SA in the Rincon project. The company produced its first LCE product in May 2018. It has completed a total of 21 well-drilling programs this year.
Argosy’s stock has witnessed a drastic year to date fall of around 41% with $0.280 price at 2018 beginning. The company produced outstanding PEA (preliminary economic assessment) results last month moving the company directly to Stage 3 development phase. The company shares still crashed at the market offering a poor return of -28.3 % to its investor.
However, Argosy’s projects are progressing magnificently in their early development phase. The company’s growth strategy reflects the vision of developing strategic partnerships to establish itself as a strong mining giant. Argosy is the only new lithium brine developer to construct an industrial scale pilot plant to produce battery-grade lithium carbonate.
The company’s stock reflects significant upside, with its performance change of around 658% since its inception till date.
Kidman Resources Limited
Already popular player in the space, Kidman Resources Limited (ASX: KDR) is a key lithium producer; and it rides high on its project, Earl Grey Lithium Project in Western Australia, a joint venture with SQM. The site is a significant source of world-class hard rock lithium deposits base. Its other major projects include: Barrow Creek and Browns Reef project.
The company has recently entered into a binding head of agreement with Mitsui & Co., Ltd for an initial period of two years in relation to the supply of lithium hydroxide. Kidman Resources also shared its impressive financial performance for the year 2018. The company’s revenues have increased by a solid CAGR of around 32% in FY18 from $129,524 in FY14 up to $521,091 in FY18. Cash and cash equivalents have grown tremendously. Meanwhile, the impending issue on Mt Holland tenement has also been finalised now.
While muted lithium sentiments since beginning of 2018 impacted Kidman as well and the stock offered a poor YTD return of around -30% as on 14 December 2018; the current trading at $1.405, with company’s share price soaring significantly by around 29% over last 3 months lays a different track. The stock reflects a performance change of around 539% since its inception.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.