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Highlights
- Frontier Lithium Inc (TSXV:FL) stocks shot up by about 12 per cent on Monday, November 8, closing at a value of C$ 1.4 per share.
- It is a pre-production business looking to make a space for itself in the industry of manufacturing lithium hydroxide used in electric vehicle (EV) batteries.
- It currently owns the PAK Lithium Project.
Frontier Lithium Inc (TSXV:FL) seems to have triggered an increased amount of interest among Canadian investors, with many of them looking to know more about the company and learn about its stock status.
Amid this wave of interest, its stocks shot up by about 12 per cent on Monday, November 8, closing at a value of C$ 1.4 per share.
What could have caused Frontier Lithium’s stock price to surge and why could investors be showing interest in it? Let’s find out.
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Why Frontier Lithium Inc (TSXV:FL) stocks surged?
Frontier Lithium describes itself as a “pre-production business” looking to make a space for itself in the industry of manufacturing lithium hydroxide used in electric vehicle (EV) batteries. It currently owns the PAK Lithium Project.
The Ontario, Canada-based company is said to be studying two lithium deposits in the northwestern parts of the province, which reportedly holds sufficient resources to help develop some 500,000 EV batteries a year.
Last week, on November 3, Frontier Lithium announced that an advanced metallurgical program has been initiated for its PAK project.
The lithium concentrate pilot, which will be headed by a third-party lab, is set to be involved in the optimization of the concentrator flowsheet(s), the generation of data needed in the Pre-Feasibility study (PFS), among other things.
Another development that could have bolstered the performance of Frontier Lithium stocks on Monday was the passing of the historic US$ 1.2 trillion infrastructure bill in the US House of Representatives on Friday, November 3.
The bill’s approval saw quite a few EV stocks go soaring as it proposes an investment of about US$ 7.5 billion in low and zero carbon emission vehicles and another US$ 7.5 billion funding for EV charging stations.
As Frontier Lithium focuses its business in North America, this development could have boosted its stock price, like it did for many fuel cell stocks this week.
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Frontier Lithium stock performance
Stocks of this lithium company has grown by nearly 285 per cent this year. On a one-year basis, the EV scrip has expanded by a notable 318 per cent.
In November so far, Frontier Lithium stock notes a growth of nearly 36 per cent, while it has surged by more than 94 per cent in the past six months.
Amid its latest surge on Monday, FL stocks posted a fresh 52-week high of C$ 1.43 per piece.
Bottom line
With the EV industry gradually expanding its popularity among users and world leaders, businesses involved in this space are likely to note a surge in demand as well.
However, investors who are interested in Frontier Lithium should bear in mind that it is a penny-cap company, presently holding a market cap of about C$ 274 million.
