Assets that glittered and ASX stocks that mattered in 2022

Highlights

• Cygnus Gold recently received commitments to raise around AU$8 million
• Askari Metals completed Phase I of reverse circulation drilling at the Uis lithium project
• Ardea’s Kalgoorlie Nickel Project has been recognised as a Major Project by the Australian Federal Government.

The commodity market experienced several turmoils in 2022. Russia’s invasion of Ukraine towards the end of February 2022 had a major global impact. Supply chains have been disrupted since the COVID-19 pandemic. The scenario of the war between Russia and Ukraine added to the tensions faced by the global economy. The energy sector was one of the most severely affected sectors due to the ongoing war.

Severe winters were predicted across Europe, and natural gas needed to be stocked to meet energy demands. The Russian supply of natural gas was put under strict sanctions by the US and the European Union. This saw a rise in the demand and price of coal since it can be used as an alternative to natural gas to meet rising energy demands.

The US Federal Reserve hiked interest rates in order to curb inflation and reduce unemployment rates. The US dollar strengthened globally, but there was a fear of inflation in major economies of the world. Central Banks of other countries also adopted aggressive tightening measures.

Amid all the above factors, Lithium demand remained high throughout 2022, following the trend set in 2021. As a result, spodumene concentrate prices soared since the demand was outpacing the supply.

Data: ASX as on 06 January 2023

The demand for lithium has been driven by the surging demand for electric vehicles. Along with it, various governments are favouring electric transportation to reduce emissions of greenhouse gases and global warming.

The supply of lithium increased towards the end of the year, and there might be a slowdown in electric vehicle demand in China due to the expiring subsidy from the government. These two factors will be vital for lithium carbonate prices in 2023.

Cygnus Gold Ltd. (ASX:CY5)

Australian and Canadian critical minerals exploration group Cygnus Gold Limited is focused on advancing the Pontax lithium project in Canada, and the Bencubbin lithium and Snake Rock projects in Australia. The portfolio of the company also includes nickel, copper, and platinum group elements (PGE). The company has recently acquired the Mitsumis lithium project and is looking to commence exploration and mapping of the project in 2023.

Cygnus Gold recently received commitments to raise around AU$8 million through a share placement from sophisticated and professional investors. The funds raised from the placement will be used by Cygnus for exploration activities at the Pontax, James Bay, Bencubbin, and Snake Rock projects. The company also received great results from the first three holes at Pontax. The results have doubled the known depth of mineralisation. Cygnus has planned to extend drilling at the project.  

Askari Metals Ltd. (ASX:AS2)

Australia-based battery metals exploration company Askari Metals Limited is focused on developing high-grade lithium, copper, silver and gold projects in New South Wales, Western Australia, Namibia, and the Northern Territory.

Askari Metals recently announced the completion of the maiden Reverse Circulation (RC) drilling program at the Uis Lithium Project, Namibia. The first phase comprised 59 drill holes for a total of 3,017m, but the total drilling campaign comprises 10,000m. It will be completed in three phases. The results of the surface sample of the Uis project contained high-grade lithium mineralisation reaching up to 3.1% lithium oxide, 1.3% tin, 658ppm tantalum and 4,214ppm rubidium.

Phase II drilling will commence in February 2023.

Image: © Scanrail | Megapixl.com

Ardea Resources Ltd. (ASX:ARL)

Australia-based minerals company Ardea Resources Limited is primarily engaged in Western Australia for exploration and development activities. Ardea is advancing its Kalgoorlie Nickel Project (KNP), which has also been recognised by the Australian Federal Government, as a Major Project.

Ardea Resources provided an update about exploration activities in the KNP, Perrinvale, and Bedonia projects located in Eastern Goldfields. The company portfolio covers an area of 4,200 sq. kilometres and includes prospects for critical minerals like lithium-caesium-tantalum, and rare earth elements (REE). The company is looking to maximise developing and exploring critical minerals from its tenements.