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Highlights
- Numerous lithium stocks have recently appeared on ASX in an effort to capitalise on surge in investors' interest in lithium explorers.
- Australia is currently the leading producer of lithium and produces more than half of the world's lithium.
Hours before the Reserve Bank of Australia's (RBA) interest rate decision meeting, the Australian stock market opened lower on Tuesday (2 August 2022).
The ASX 200 index was 0.41% lower at 6,964.40 points today (2 August) at 2.13 PM AEST. On the other side, the ASX 200 Materials index was 1.85% down at 15,436.20 at 2.19 PM AEST.
Meanwhile, seven out of 11 sectors were down, and A-REIT was the lowest sector (-1.99%) followed by materials (-1.41%) and energy (-1.11%) sectors at 2.20 PM AEST.
Talking about the lithium stocks particularly, the focus of the lithium story has been on the material's high demand, impending supply shortages, and soaring price forecasts. Even for lithium companies, the enthusiasm does not always result in an increase in stock price.
Numerous lithium stocks have recently appeared on the ASX in an effort to capitalise on the surge in Australian investors' interest in lithium explorers and producers over the past 12 months.
The current supply gap has caused lithium prices to skyrocket over the past few years, which has helped regional lithium producers and explorers.
In late May, a Goldman Sachs research paper proposed that a rise in supply from Chinese miners pursuing unconventional lepidolite resources might address the imbalance in the lithium market. Similar assertions were made at the same time by rival investment bank Credit Suisse regarding an anticipated supply surge that would tilt the lithium market back into equilibrium as soon as 2023–2024, which is far sooner than most people anticipated. These reports affected the ASX-listed lithium firms and share values plummeted as a result.
For the record, Chile has more lithium reserves than any other country with 8 million tonnes, more than twice as much as Australia's 2.7 million tonnes. With somewhat more than half of the world's lithium production, Australia is currently the leading producer of the precious metal.
On this note, this article will talk about few major ASX-listed lithium stocks' performance in July and year-to-date (YTD).
Sayona Mining Limited
Lithium producer Sayona Mining (ASX:SYA) recently shared the results of its quarterly activities for the period ended 30 June 2022. During the quarter, North American Lithium (NAL) restart is approved by Sayona and Piedmont, aided by successful AU$190 million placement to institutional, experienced, and knowledgeable investors worldwide.
The successful NOVONIX battery tests confirm the high caliber of the spodumene produced by the Authier Lithium Project.
T Australia-based Sayona Mining is dedicated to locating and producing the raw materials needed to create lithium-ion batteries for use in the quickly expanding new and green technology sectors.
Shares of Sayona Mining were trading at AU$0.18 each, down 5.41% on ASX today at 2.44 PM AEST. The company's shares have grown more than 16% in the last one month and around 25% on a YTD basis.
Image Source: © Foture | Megapixl.com
Core Lithium Limited
Yesterday (1 August),
Core Lithium (ASX:CXO) shared drilling results of BP33, part of the Finniss Lithium Project near Darwin in the Northern Territory on Monday (August 1).
After the start of diamond drilling at BP33 in May, Core Lithium reported that the business is now starting to get tests. Three deep diamond drill holes have a combined depth of up to 470 meters and have encountered the significant BP33 mineralisation.
The company added that five more diamond-drilled holes have found mineralised pegmatite connected to the southern BP33 deposit at depths up to 420 meters below the surface, below any previous drilling.
Shares of Core were trading 4.23% down at AU$1.14 per share on ASX today at 2.49 PM AEST. The company's shares have jumped over 21% in the last one month and more than 80% YTD.
Image Source: © Ekays | Megapixl.com
Mineral Resources Limited
Through its two primary lithium properties, Mineral Resources (ASX:MIN, MinRes) hopes to rank among the top five producers of lithium minerals worldwide. Currently, the Mt Marion mine in the Goldfields area of Western Australia is producing about 450,000 tonnes of spodumene concentrate annually. To raise production to 900,000 tonnes of spodumene concentrate annually by December 2022, MinRes is now upgrading Mt Marion.
MinRes is well-positioned to profit from more than simply the mining part of the lithium value chain because to its exposure to the refining side and its clear intention to increase lithium minerals output over the next years. Investors find its capacity to profit from the present spike in spot prices, superior scale, and track record of execution to be quite alluring.
Today at 2.51 PM AEST, MinRes shares were spotted trading at AU$52.74 each, down 2.26% on ASX. However, the company's shares have risen almost 15% in the last one month but were down around 10% on a YTD basis.
Pilbara Minerals Limited
Another key player in the lithium industry Pilbara Minerals (ASX:PLS) commenced production at its flagship wholly owned Pilgangoora lithium-tantalum project in October 2021. The project is located in WA’s north. .
Shares of Pilbara were trading 2.32% lower at AU$2.74 per share on ASX today at 2.58 PM AEST. With this, the company has reported more than 21% growth in last one month and a negative growth of over 22% YTD.
