Kodal, Bacanora & Ceres: 3 AIM-listed stocks to join the EV boom

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Kodal, Bacanora & Ceres: 3 AIM-listed stocks to join the EV boom

 Kodal, Bacanora & Ceres: 3 AIM-listed stocks to join the EV boom
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Highlights

  • Kodal Minerals reported a loss before other comprehensive income of £623,000 for the year ended 31 March 2021 compared to a £630,000 loss in the previous year. 
  • Bacanora partnered with Ganfeng Lithium for the development of a 35,000 tonne, open-pit lithium carbonate facility at the Sonora Lithium Project located in Mexico.
  • Ceres Power Holdings’ revenue rose by 96% year-on-year to £17.4 million in H1 2021 compared to £8.9 million in H1 2020.

Drivers switching to electric vehicles risk being compelled to spend even more due to rising battery costs. Costs of lithium battery cells recorded a rise for the first time post several years of decline, on the back of lithium supply constraints and rising costs of other battery raw materials. The price rise is also a result of slowing investments in new lithium production.

Battery manufacturers in China are negotiating contracts with clients and are slowly drifting away from fixed pricing structures. Higher upfront costs of electric cars are hindering the shift to battery-powered cars from diesel or petrol cars. While electric vehicles are cheaper to run, it may take years to recover upfront costs. The UK is also set to ban the sale of new petrol- or diesel-powered cars in 2030.

Let us review the investment prospect in three stocks - Kodal Minerals, Bacanora Lithium and Ceres Power Holdings that are related to battery and its main component, lithium.

Kodal, Bacanora & Ceres: Market cap and one year return

(Data source: Refinitiv)

Kodal Minerals Plc (LON: KOD)

Kodal Minerals is a mineral exploration and development firm. Its operations are focused on the gold assets in West Africa and Bougouni Lithium Project in Southern Mali. Recently, the company acquired minority shareholdings in Bougouni Lithium Project. 

The shares of Kodal Minerals closed at GBX 0.36, up by 2.57% on Friday, 5 November 2021. The market cap of the company stands at £55.34 million, and the shares of Kodal Minerals returned 422.56% in the last one year to shareholders.

Kodal Minerals reported a loss before other comprehensive income of £623,000 for the year ended 31 March 2021 compared to a £630,000 loss in the previous year. During the year, Kodal Minerals made investments worth £542,000 for the exploration and evaluation activities compared to £1.6 million in 2020.

Bacanora Lithium Plc (LON: BCN)

Bacanora Lithium is an AIM-listed company engaged in lithium exploration and development. Bacanora partnered with Ganfeng Lithium for the development of a 35,000 tonne, open-pit lithium carbonate facility at the Sonora Lithium Project located in Mexico.

The shares of Bacanora Lithium closed at GBX 67.00, down by 0.37% on Friday, 5 November 2021. The market cap of the company stands at £258.34 million, and the shares of Bacanora Lithium returned 109.38% in the last one year to shareholders.

Bacanora is the owner of a 35.5% stake in Zinnwald Lithium Plc. The latter owns Zinnwald Lithium Project and Falkenhaim, Altenberg, and Sadisdorf licences in Germany.

Bacanora recorded a total comprehensive income of US$29.7 million for H1 ended 30 June 2021 compared to a loss of US$10.8 million in 2020. Its operating loss was US$2.4 million for the period compared to US$2.8 million recorded in the previous year.

Ceres Power Holdings Plc (LON: CWR)

Ceres Power Holdings is a fuel-cell technology and engineering firm. Ceres leads the Corporate Electric Vehicle Alliance that is a group of companies focused on speeding up the shift to electric vehicles. It supports organisations in achieving their fleet electrification commitments. As of 30 June 2021, the company’s order book and pipeline were £42.0 million and £43.8 million, respectively.

The shares of Ceres Power Holdings closed at GBX 1,173.00, down by 2.74% on Friday, 5 November 2021. The market cap of the company stands at £2,298.25 million, and the shares of Ceres Power Holdings returned 48.11% in the last one year to shareholders.

Ceres Power Holdings’ revenue rose by 96% year-on-year to £17.4 million in H1 2021 compared to £8.9 million in H1 2020. Its gross profit stood at £12.2 million in H1 2021 compared to £7.1 million in H1 2020.

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