How did these ASX lithium stocks fare lately?

Highlights

• Pure elemental lithium is not found in nature due to its high reactivity.
• It is instead seen as a component of salts or other compounds.
• Shares of lithium companies like Core, Piedmont, and Pilbara closed in the red on Wednesday (2 November 2022).

Lithium (Li) is a highly reactive alkali metal. Because of its great thermal and electrical conductivity, it has many important applications, for example in the production of glass, chemicals, high-temperature lubricants, medicines, and batteries for electric vehicles and consumer electronics.

However, due to lithium’s high reactivity, it is not found in its pure elemental form in nature; instead, lithium exists as a component of salts or other compounds. Lithium carbonate, a relatively stable molecule easily converted to other salts or compounds, is the most common form of commercial lithium.

Australia supplies just under half of the world's need for the metal in its unprocessed form, which is essential to producing electric vehicles. Most of that is shipped to China as hard rock ore, which is processed into lithium hydroxide suitable for batteries.

According to the government, lithium is on track to overtake cattle and wheat as Australia's fifth most valuable exportable good and to rank equally with copper and crude oil. 

In this article, we at Kalkine Media® discuss a few lithium stocks, capturing their performance last month.

Core Lithium Ltd

Core Lithium (ASX:CXO) explores and develops lithium, copper, and uranium metals.

In its recent ASX announcement (on 31 October), the company shared its quarterly activities and cash flow report for the period that ended on 30 September 2022.

A look at the September quarter report

The company advanced on the Finniss Lithium Project's construction work. In the Grants pit, ore was also discovered.

The Finniss mineral resource estimation (MRE) and Finniss Lithium Project ore reserve were upgraded by 28% and 43%, respectively, during the quarter by the lithium-focused business Core, bringing the life of the mine to 12 years. The final assays for the BP33 diamond drilling demonstrated excellent prospects for further MRE expansion.

Additionally, Core disclosed that in October it successfully closed a fully underwritten AU$100 million capital offering. Offtake discussions were still being held with important international partners. In the third quarter of September, the business welcomed its new CEO, Gareth Manderson.

Stock performance

Core’s shares ended AU$1.40 each, on the ASX. However, the shares have grown more than 12% in the last month and over 44% on a year-to-date (YTD) basis.

Image source: © Max5128 | Megapixl.com

Piedmont Lithium Inc.

Piedmont Lithium (ASX:PLL) is a leading global lithium resource developer.

In its corporate presentation today (2 November) on the ASX, the company updated the market about its ongoing projects in different countries. Carolina Lithium, which is 100% owned by Piedmont, is advancing on project regulatory approvals for development and construction. Atlantic Lithium in Ghana is targeting its first production in 2024.

Before this (on 27 October), Piedmont, via an ASX filing, had informed the market that it would participate in various upcoming industry conferences.

Previously, on 25 October, the company had informed the market that Atlantic Lithium (ASX:ALL) had completed infill and exploration drilling for the flagship Ewoyaa Project in Ghana. Piedmont has a 50% stake in Atlantic Lithium's spodumene projects in Ghana.

The lithium company Piedmont has also been selected for a US$141.7 million grant by the US Department of Energy for its Tennessee Lithium Project.

Stock performance

Shares of Piedmont last exchanged hands at AU$0.98 each, down 1.51%, Wednesday on the ASX. The company's shares have jumped over 18% in the last month and more than 27% on a YTD basis.

Image source: © Design56 | Megapixl.com

Pilbara Minerals Ltd

Pilbara Minerals (ASX:PLS) is a lithium and tantalum producer and explorer. The company shared its corporate update today (2 November) through the ASX.

In the corporate presentation, Pilbara provided an update on its four-year journey and partnership with POSCO. It also provided insights into the global market. According to the company's ASX filing, lithium prices will continue to rise, and the Pilbara-POSCO JV is well positioned to profit from the state of the market.

Pilbara released its quarterly operations report during the September quarter last month (25 October). The P680 Project got underway, with contracts for long-lead item awarded. The company reported that its enhanced output and sales contributed significantly –by  AU$783.7 million – to its cash position of AU$1.375 billion.

To capitalise on the rising demand for lithium raw materials, Pilbara increased spodumene concentrate production and sales at the Pilgangoora Project throughout the third quarter of 2022. Spodumene concentrate production reached 147,105 dmt, an increase of 16% from the June 2022 quarter (127,236 dmt). The achievement of the Ngungaju Plant's nameplate capacity of 180–200,000 tpa was a noteworthy feature of the quarter.

Stock performance

Pilbara's shares last traded at AU$5.10 per share, down 3.95%, on the ASX on Wednesday. However, in the last month, the company's shares have climbed over 12%, and on a YTD basis, they have climbed almost 45%.