- 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%.