The ups and downs in Lithium Sector – 5 Stocks under Spotlight

  • Sep 20, 2018 AEST
  • Team Kalkine
The ups and downs in Lithium Sector – 5 Stocks under Spotlight

Galaxy Resources Limited

Agreement with POSCO: Galaxy Resources Limited’s (ASX: GXY) stock rose 4.10% on September 20, 2018.  POSCO, a Korean listed company and one of the world’s largest steel producers, has signed binding definitive documentation with GXY for US$280 million acquisition of a package of Argentinean lithium tenements located in the northern basin of the Salar del Hombre Muerto region, from GXY. GXY will retain the tenements situated in the southern portion of its Sal de Vida Project. On the other hand, GXY for the first half 2018 has reported record 682% growth in the revenue to $88.4m and 331% growth in NPAT to $11.5m. During 1H 2018, at Mt Cattlin, the total mining volumes rose by 110% over the previous half-year because in 2017 the operations were being ramped up, and commissioned. The company has completed a total of 6 shipments of lithium concentrate during the 1H 208 for an aggregate 90,019 dmt of product sold, and all shipments were at grade levels above contract requirements. Meanwhile, GXY stock has fallen 19.47% in the last three months as on September 19, 2018.


1H 2018 Financial Performance (Source: Company Reports)

Pilbara Minerals Ltd

Rise in total Proved and Probable Ore Reserves: Pilbara Minerals Ltd.’s (ASX: PLS) stock rose 6.88% on September 20, 2018. The company has increased the proved and probable ore reserves by 35% at its wholly-owned Pilgangoora Lithium-Tantalum Project in Western Australia’s Pilbara region to 108.2 million tonnes grading 1.25% Li2O, 120ppm Ta2O5 and 1.17% Fe2O3. This has been estimated from an upgraded JORC Mineral Resource of 226.0 Mt @ 1.27% Li2O. The updated Ore Reserve includes an estimated 1.36 million tonnes of contained Li2O and 28.5 million pounds of Ta2O5, extending the mine life to ? 23 years based on the proposed Stage 2, 5Mtpa operation. The continuous Ore Reserve growth and customer demand conditions will provide the opportunity to PLS to consider further expansion of the project beyond Stage 2. There are significant opportunities to further expand Mineral Resources and Ore Reserves, and further drilling campaigns are expected to commence in the March Quarter 2019. Meanwhile, PLS stock has fallen 9.60% in three months as on September 19, 2018.

Altura Mining Ltd

Operations and shipping update: Altura Mining Ltd (ASX: AJM) is targeting ramp up to nameplate production of 220,000 tonnes of 6% Li2O spodumene concentrate for the end of calendar year 2018. The company plans shipments of concentrate at regular intervals in order to suit the offtake partners’ consumption requirements. The company will be shipping cargoes on “Handy” sized vessels of up to 40,000 tonnes and AJM will receive payment for its cargoes after the presentation of documents under standard letter of credit arrangements once the product is loaded and the independent sampling and analysis of the shipment has been completed. AJM is focusing on ramping up production levels to nameplate capacity. Meanwhile, AJM stock has fallen 33.33% in three months as on September 19, 2018 and traded flat on September 20, 2018.

Lithium Australia NL

Confirmed High capacity of LFP material: Lithium Australia NL (ASX: LIT), through its wholly-owned subsidiary VSPC Ltd (VSPC) has completed a number of pilot-plant production runs and will produce samples for lithium-ion battery-cell makers in China to get it tested. In-house testing has confirmed the high capacity of VSPC’s LFP cathode material. VSPC plans to seek confirmation of that performance from customers now. Moreover, VSPC’s solution to increase lithium-ion battery efficiency is considered to be the best available for the production of LFP cathode powders. The technology also has applications in catalyst and medical fields. Meanwhile, LIT stock has fallen 8.70% in three months as on September 19, 2018.

Lepidico Ltd

Positive Exploration results: Lepidico Ltd (ASX: LPD) has confirmed multiple lepidolite mineralised pegmatites through drilling at the Youanmi Lepidolite Project. The company has planned a follow up program for the implementation after the receipt of assay results to collect additional information on this extensive lepidolite field prior to the onset of summer and the end of the current field season. Moreover, LPD had signed an agreement with Venus Metals Corporation Limited, under which LPD can earn an 80% interest in the lithium rights over exploration licence E57/983. This program included 38 holes for a total of 936 metres of RC drilling. The assay results from exploration are expected in late September. Further, the reconnaissance work found evidence of lepidolite-bearing pegmatites at each target area with lepidolite content in rock chips ranging from 5% to 35% and commensurate Li2O contents of 0.25% to 1.7%. Additionally, Target 1 hosts a 4 – 5 m thick lepidolite-bearing pegmatite 250 m in strike and open in all directions and Target 2 returned a pegmatite intercept of 9 m @ 20% lepidolite. Meanwhile, LPD stock has fallen 47.22% in three months as on September 19, 2018.

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