Throbs of Five Small-Cap Lithium Stocks- INR, ASN, CXO, AGY, and GLN

Throbs of Five Small-Cap Lithium Stocks- INR, ASN, CXO, AGY, and GLN

Lithium stocks on the exchange seem to continue their downward journey post taking a breather for some time. Despite several measures adopted by many large-cap lithium mining companies to check the domestic production, the global lithium market is still dealing with a large supply and the dilemma to park it.

To Know More, Do Read: Spodumene Pullback- How are the Key Australian Players Positioned?

The problem does not appear to be lying at the demand front, as the demand for NEV is growing and many more countries are calling the banner under Accord de Paris, however, it seems to be lying with the oversupplied market.

Clearly, oversupply or not, the lithium mining stocks on ASX are back on the previous downtrend, and while they are moving under pressure, some of the junior stocks are also tumbling, and small-cap lithium miners are taking actions to maintain stakeholders’ confidence.

Also Read: Orocobre Managing Industry Challenges; Actions and Developments in Q2 FY20

Let us take a look at some of the recent action and development of ASX-listed small-cap lithium mining stocks.

Ioneer Limited (ASX:INR)

  • INR progressing towards DFS and State & Federal permitting process.

INR, an emerging lithium-boron supplier, recently confirmed that the Definitive Feasibility Study and plans to advance for State and Federal permitting process concerning Rhyolite Ridge Lithium Project in Nevada, USA, is ongoing smoothly, despite unprecedented market volatility over COVID-19 outbreak.

The Company further confirmed that the business operations remain unimpacted and the ability of the miner to meet key project milestones remain intact.

DFS is now entering the final stage of completion and INR is finalising the Plan of Operations related to the development of Rhyolite Ridge prospect, which the Company further intends to file with the United States Department of the Interior - Bureau of Land Management.

The filing with the U.S. BLM would further instigate the environmental review process under NEPA or National Environmental Policy Act following an EIS or Environmental Impact Statement pathway.

The stock of the Company rebounded recently from a low of $0.120 (as on 28 June 2019) to $0.270 (intraday high on 4 November 2019), which marked a price appreciation of 125 per cent. However, the stock is again moving in a downtrend from its recent high of $0.270 to the present low of $0.100 (as on 12 March 2020), down by 62.96 per cent.

Anson Resources Limited (ASX:ASN)

  • ASN to upgrade JORC Resource for Paradox Brine Project.

ASN, the developer of Paradox Basin Brine project and new energy & technology player, announced that it started test work over the newly identified historic diamond core and cuttings, which were retained by the Federal government agencies, USGS or United States Geological Society, and UGS or Utah Geological Survey.

The Company anticipates that the discovery would provide a significant cost saving in upgrading the JORC Resources at the Paradox prospect to Indicated and Measured categories, without undertaking further drilling and flow testing.

The samples received by the ASN is from historical oil and gas exploration, which intersected Clastic Zone 31, which is an initial zone that the Company is targeting for lithium and bromine extraction.

Anson would now conduct the upgrade-related test work and utilise the historic drilling logs, which would be combined with the logs from the exploration re-entry programs conducted by the Company, and this will be running in parallel with the Preliminary Economic Assessment, which would also be utilised in preparing the Pre-Feasibility study along with the upgrade of JORC Resource.

The stock of the Company recently rebounded from a low of $0.026 (as on 6 January 2020) to $0.041 (intraday high on 15 January 2020), up by ~ 57.69 per cent. However, the stock moved in a downtrend from its recent top of $0.041 to $0.021 (intraday low on 2 March 2020) but recovered slightly in past few days to its last trading price at $0.025, as on 12 March 2020.

Core Lithium Limited (ASX:CXO)

  • CXO receives excellent recoveries from gravity separation test work on spodumene pegmatite from BP33.

CXO, an advanced Australian lithium developer, recently announced that it received enhanced metallurgical performance from the latest test work, performed on spodumene pegmatite core from BP33 deposit at the Finniss Lithium Project.

As per the Company, the new improved test work could produce exceptional quality lithium concentrate at better lithium grades with lower iron content, which would be differentiated in a lithium battery and EV market, currently focused on exceptional quality from ethical and sustainable sources.

The iron content in the combined concentrate is well below the maximum Fe2O3 grade of 1 per cent required by customers at 0.44 per cent.

                     

Concentrate Iron ore Lithium Content (Source: Company’s Report)

The stock of the Company is moving in continuous downtrend from its recent peak $0.065 (intraday high on 29 November 2019) with slight recoveries in between, and CXO last traded at $0.028, down by 9.677 percent from its last close, as on 12 March 2020.

Argosy Minerals Limited (ASX:AGY)

  • AGY schedules the preliminary trial cargo comprising of 5 tonnes of high-quality lithium carbonate

AGY, an ASX-listed lithium production company, recently announced that it scheduled a primary shipment containing 5 tonnes of over 99.5 per cent lithium carbonate for Mitsubishi Corporation RtM Japan Ltd.

AGY produced the scheduled carbonate from its industrial-scale pilot plant operations for shipment to honour the Sales Agreement inked by the company in March 2019 with Mitsubishi Corporation RtM Japan Ltd, which now puts the Company under the exclusive list of international lithium carbonate exporters.

The Company also provided Certificate of Analysis for each tonne of product that satisfies the conditions of the Sales Agreement, which the customer have tested and confirmed for the product cargo, yet to be delivered.

Post receiving the sales price information for the product cargo, which utilises a set formula, agreed mutually and referred to an industry-standard benchmark index LCE product price, netting off in-country taxes, adjustments for product specifications, all associated shipping costs and commission fees; the Company, is working on receiving the regulatory export approval and other shipment-related work.

The product cargo is estimated by AGY to be shipped this month without delay. Also, AGY holds additional high-quality lithium carbonate product in stock in preparation for the next product delivery.

The stock of the Company is moving in continuous downtrend from its recent peak $0.339 (intraday high on 7 August 2019) with slight recoveries in between and last traded at $0.043, plunging down by 12.245% from its previous close, as on 12 March 2020.

Galan Lithium Limited (ASX:GLN)

  • GLN reports maiden JORC reported Mineral Resource Estimates for the Hombre Muerto West lithium brine project

GLN, an ASX-listed junior lithium miner, reported the JORC Mineral Resource, estimated by the SRK Consulting (Australasia) for the Hombre Muerto West lithium brine project in Argentina.

The Inferred categorised mineral resource for Pata Pila and Rana de Sal stands at 1,080,775 tonnes of contained lithium carbonate equivalent with an average grade of 946mg/l Li.

The detailed resource estimates provided by the Company are as below:

Mineral Resource Statement for Hombre Muerto West and Candelas North (Source: Company’s Report)

The total combined mineral resource of GLN now increased by 158 per cent from 685k tonnes of lithium carbonate equivalent @ 672mg/l Li to 1.77M tonnes of lithium carbonate equivalent @ 837mg/l Li.

The stock moved in a downtrend from the level of $0.680 (intraday high on 4 March 2019) to the level of $0.125 (intraday low on 24 December 2019), which marked a fall of ~ 81.61 per cent. However, the stock recovered recently from its low of $0.125 to $0.320 (intraday high on 21 February 2020), up by 156 per cent, and last traded at $0.235, down by 6 percent from its previous close, as on 12 March 2020.


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