All modern technologies require a substance to operate, for devices this means a lithium-based power source. While the industry demand for lithium remains strong as electronics manufacturers roll out smart devices and is only likely to increase, the market sometimes defies the logic and there seems to be a disconnect between lithium stocks and the underlying demand. Lithium demand is increasing and for now it remains the most desired industrial commodities. Two of the stocks under this category are:
INFINITY LITHIUM CORPORATION LIMITED (ASX: INF) – Located in southern Gabon, the company announced the maiden potash Mineral Resource at the Banio Potash project. The consolidated loss of the consolidated entity after providing for income tax amounted to $9,040,990 as compared to the 2017 loss of $7,951,532. The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to the date of this report. To acquire further suitable projects for exploration as opportunities arise, the consolidated entity intends to continue its exploration, development and production activities on its existing projects. The cash and cash equivalents at end of financial year period June 30, 2018 is of $3.9 million, net assets of the group at 30 June 2018 are $4,113,404 reflecting decent balance sheet position. The stock traded up by 1.724% at a market price of $0.059 very close to its 52-week low, as at November 5, 2018 and has undergone a performance change of 1.75% over the past 1 week.
JADAR LITHIUM LIMITED (ASX: JDR) – The company’s principal activity was lithium and associated mineralization exploration during the year, in the Republic of Serbia. The consolidated loss for the year amounted to ($1,216,699) in 2018 as compared to the loss in 2017 of ($266,646). There were no dividends paid or recommended during the financial year ended 30 June 2018. The cash at bank and on hand is $3.419 million with no debt represents a decent balance sheet. To acquire effectively 80% of Austrian Exploration licenses from Exchange Minerals Limited, with a first right of refusal over the remaining 20% (Acquisition) the company has entered into a binding agreement. The market capitalization of the stock is $3.9 million and the earnings per share (EPS) is -0.006 AUD reflecting the restrain in profits. The stock traded up by 50% at a market price of $0.015 as at November 5, 2018 and has undergone a performance change of -28.57% over the past 1 week.
P/BV for INF and JDR, Source: Thomson Reuters.
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