This ASX Materials company has gained over 200% in a month

Follow us on Google News:
 This ASX Materials company has gained over 200% in a month
Image source: © Robertohunger | Megapixl.com

Highlights:

  • Winsome Resources’ share price has shot up by 203.95% in a month, and 344.23% in a year.
  • Lithium carbonate price has increased by 113% on a year-to-date basis.

The ASX-listed mining company Winsome Resources Limited (ASX:WR1) is focused on developing and exploring spodumene concentrate, which is employed for conversion in a range of battery applications. The share price of Winsome has increased by 203.95% in a month, and in one year, it has surged by 344.23%. On a year-to-date basis, the share price has risen by 188.75%, and in the last six months, it has grown by 168.60% (as of 24 November 2022).

At 10:26 AM AEDT, Winsome shares were spotted trading 6.06% higher at AU$1.22 apiece.

What are the potential reasons behind the surge in Winsome share price?

Recently, the company announced a flow-through share placement which is facilitated by PearTree Securities Inc, a Canadian flow-through share dealer under a subscription and renunciation agreement.

As reported, PearTree would not receive any commission or fee with respect to its role in the placement.

According to ASX announcement, the proceeds from the placement would be used for expediting follow-up drilling at Cancet and Adina’s priority targets. Also, the funds would be employed for undertaking preliminary drilling campaigns, field works and surveys at other projects like Decelles and Sirmac.

Winsome shared that it has received a commitment to conduct placement to raise around C$6,000,000 by issuing about 4,078,027 shares at C$1.4713 apiece.

Lithium market and Winsome

Talking about the global market and trends, Winsome said that the lithium market is witnessing a substantial deficit. The demand for lithium-ion battery production has surged by 161% on a year-over-year basis. In the financial year, global electric vehicle sales have surged by 71% YoY, and spodumene concentrate spot price has surged by x10.

Moving to the prices of lithium carbonate, as of 23 November 2022, it was CNY 591.500.00 per tonne. It was near the record high of CNY 597,500/t recorded on 11 November. On a year-to-date basis, the prices of lithium have increased by 113%, driven by strong demand and tight supply. The increasing demand for electric vehicles supports the prices for battery input battery materials.

In one year, lithium prices have surged by 199.49%, and in a month, it has increased by 7.06%. 

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK