New lithium hunter Kali Metals makes bold, 70%+ bourse entrance
NT miner Core Lithium continues to tank as it puts production on hold
Morningstar analysis is bullish, predicting sector turnaround in 2024
Your lithium roundup for Monday January 8.
There’s a bit going on to begin Week 2, 2024 – headlined by new, rich-lister-backed ASX lithium speccie Kali Metals making a dramatic entrance.
First things first, though, and for what it’s worth (actually quite literally) a check in on lithium pricing.
And Lithium Price Bot tells us… Christ, just look away, really. 2023’s downturn has continued into 2024 so far, which will surprise virtually no one at this point.
But wait… is that little curve at the bottom of the chart the beginning of a fish-hook reversal?
2024-01-05#Lithium Carbonate 99.5% Min China Spot
Price: $13,471.40
1 day: $-55.84 (-0.41)
YTD: -1.53%#Spodumene Concentrate (6%, CIF China)
Price: $1,055.00
1 day: $-5.0 (-0.47)
YTD: -19.77%
Sponsored by @SiennaResources $SIE $SNNAFhttps://t.co/mJL34UwAMA
— Lithium Price Bot (@LithiumPriceBot) January 5, 2024
Kali Metals makes big, bold entrance
While Core Lithium’s share price takes a battering today (see further below), on the other side of the ASX lithium hype ledger, we have newcomer explorer Kali Metals (ASX:KM1), backed by none other than MinRes boss Chris Ellison, among other deep-pocketed notables.
Making its ASX debut today, it’s off to a head-turning start with a +88% gain in early morning trade and a share price of $0.475 – since cooling off a tad at around +72% at the time of writing.
This dramatic entrance comes after the closing of a popular, and quick, $15m IPO for the fresh lithium stock.
It’s been a tough 12 months for IPOs in general, with just eight currently in the green. Despite spodumene and chemicals prices falling precipitously, four of these are lithium stocks, including KM1.
Kali Metals is a Kalamazoo Resources (ASX:KZR) spinout, with assets in WA (Pilbara and Goldfields tenements), and in the Lachlan Fold Belt of southern NSW and northeastern Victoria. KZR shareholders get an initial 25% in-specie distribution (1-for-17.64) of shares in Kali.
Along with Mineral Resources’ (ASX:MIN) Chris Ellison, TSX-listed $1bn Canadian gold miner Karora Resources (TSX:KRR) is a major shareholder of the new venture. Investment vehicles associated with Multiplex heir Tim Roberts, Navitas education company co-founder Rod Jones, as well as Mutual Trust – the family office for the Myer and Baillieu families – are also notables in Kali’s top 20 shareholders.
Kali controls the rights to lithium found on Goldfields tenements owned by Karora.
“The Higginsville project contains ample evidence of pegmatite intrusive activity and several confirmed LCT pegmatites,” the company says.
“Several areas within the tenure have already been identified in previous work that warrant early investigation by drilling.”
These sites have not been drilled for lithium in recent years, but are bang in the middle of hot lithium territory, with MinRes’s Mt Marion mine to the north and its Bald Hill operation to the east.
And then there’s Essential Metals’ (ASX:ESS) Pioneer Dome project to the west and Liontown Resources’ (ASX:LTR) Buldania deposit to the south, as well as Torque Metals’ (ASX:TOR) highly prospective New Dawn project, which also abuts KM1’s landholdings.
Oh, and before we forget… and definitely not last but least, Kali has an SQM Earn-in Agreement at Kalamazoo’s DOM’s Hill and Marble Bar projects, where the major Chilean producer – which produces ~19% of the world’s lithium supply – is solely funding exploration.
As The Australian‘s ressie writer Nick Evans reported last week, this rich-list backed lithium play could be something of a litmus test regarding lithium junior sentiment.
“Kali will be a key test of whether the downturn affecting later-stage lithium developers extends to junior explorers, which were among the hottest stocks of the year in 2023,” wrote Evans.
So far, it’s so bullish for KM1, but time will probably pretty quickly tell if it’s a flash in the pan or a catalyst for reignited lithium junior interest.
Core continues to slide
Some doom and gloom surrounding continued dipping lithium prices certainly manifested in headlines stemming from an ASX notable on Friday.
Despite the Kali sugar hit today, it still feels like nervy times for lithium investors right now, especially after Core Lithium (ASX:CXO), Australia’s newest spodumene miner, announced a temporary suspension of mining at its Finniss project in the NT.
As reported by Stockhead on Friday, the $480m market capper will instead shift its focus to processing and selling stockpiled materials, with development of the 10.5Mt BP33 underground mine put on ice and discretionary spend including studies, exploration and corporate costs reduced.
CXO’s price dipped 11.5% on Friday, and at the time of writing it’s not faring any better; in fact it’s shaping worse on Monday, down another 18%.
The silver lining for CXO, though, is that it has $202m in the bank at the end of September and no debt, placing it in a strong position for the foreseeable.
The more optimistic lithium pundits (including Morningstar – see below) believe a turnaround for lithium spot prices could happen mid year.
‘Lithium demand will more than triple’: Morningstar
One thing seems certain so far this year – lithium remains a tricky market to call, with general non-consensus being the consensus regarding lithium price bottoming.
But here’s something – global financial services gun Morningstar has predicted lithium prices will rise in 2024 as demand growth once again finally begins to outpace supply.
Much like Joe “Mr Lithium” Lowry’s analysis in a Q&A with Stockhead recently, Morningstar analyst Seth Goldstein predicted last week that:
“As destocking ends, we expect prices will stabilise and rise in 2024.”
That said, Lowry’s exact words were: “I believe the bottom happens by the second half of 2024 at the latest.” He didn’t go so far as to predict a price spike.
Morningstar’s Seth Goldstein said this on 1/3/24. Morningstar sees an avg. US$30k/t #lithium price from 2023-2030. The chart below shows future periods in mid-$30k’s/t. Any price > $20k/t should be great for Li developers like $LIFT.v $LIFFF @Li_FTPowerhttps://t.co/eumrPHgN5p pic.twitter.com/VzSL3mHBaN
— Peter Epstein, MBA (@peterepstein2) January 7, 2024
Goldstein also crystal balled the following:
“Lithium demand will more than triple by 2030 from 2022, largely due to electric vehicles rising to 40% of global auto sales by 2030, up from 10% in 2022.
“Over the long term, we view lithium as one of the best ways to invest in rising EV adoption, as all EV batteries require lithium.
“In the near term, prices have fallen as supply caught up with demand due to inventory destocking among battery producers. Prices are currently around $17,000 per metric ton.
“As EV sales continue to grow, we forecast demand growth will accelerate, leading to prices rising by the end of the year. We forecast prices will average $30,000 per metric ton from 2023 to 2030.”
And this, too, is encouraging, from Benchmark Mineral Intelligence…
Benchmark #lithium hydroxide (EXW China) prices fall to their lowest level since May 2021.
Despite bearish demand-side fundamentals, contacts in China are beginning to report a more positive short term price outlook.
This is due in part to persistently low prices, which… pic.twitter.com/bvaQpheQqB
— Benchmark Mineral Intelligence (@benchmarkmin) January 5, 2024
How’s the rest of ASX lithium land tracking today? Let’s see…
Monday: FULLY CHARGED
Kali Metals (ASX:KM1) +72%
Solis Minerals (ASX:SLM) +17%
Manhattan Corp (ASX:MHC) +17%
Monday: RUNNING LOW
Traka Resources (ASX:TKL) -33%
Lodestar Minerals (ASX:LSR) -25%
Ragusa Minerals (ASX:RAS) -20%
ASX lithium form guide:
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop. (Note: figures accurate per ASX at 3pm.)
Stocks missing from this list? Email [email protected] and [email protected]
CODE COMPANY TODAY WEEK 1 MONTH % 12 MONTH % PRICE MARKET CAP ADV Ardiden Ltd -5% 0% -13% -49% 0.175 $11,565,739 AGY Argosy Minerals Ltd -6% -7% -17% 0% 0.125 $189,595,012 1MC Morella Corporation -9% -9% -17% -62% 0.005 $33,983,397 AML Aeon Metals Ltd. 10% 0% -8% -59% 0.011 $10,964,006 ASN Anson Resources Ltd -8% -18% -21% -38% 0.115 $167,146,092 AVZ AVZ Minerals Ltd 0% 0% 0% 0% 0.78 $2,752,409,203 CXO Core Lithium -18% -25% -18% -83% 0.1875 $491,495,175 EMH European Metals Hldg -13% -18% -37% -44% 0.35 $50,535,109 EUR European Lithium Ltd -4% -18% 25% 10% 0.086 $125,481,526 GLN Galan Lithium Ltd -2% -5% 15% -37% 0.655 $236,826,428 INF Infinity Lithium 0% -3% -3% -16% 0.097 $44,871,433 INR Ioneer Ltd 0% -8% -2% -66% 0.1375 $295,597,701 JLL Jindalee Lithium Ltd 4% -4% 5% -45% 1 $58,070,512 LIT Lithium Australia 0% 0% 3% -36% 0.03 $36,665,750 LKE Lake Resources -8% -8% 0% -85% 0.12 $184,917,812 LPD Lepidico Ltd 0% -13% -18% -53% 0.007 $61,106,464 LPI Lithium Pwr Int Ltd 0% 1% 3% 31% 0.555 $357,040,128 LTR Liontown Resources -3% -7% 24% 16% 1.5275 $3,826,735,913 MIN Mineral Resources. -2% -4% 17% -14% 67.03 $13,282,436,425 MLS Metals Australia -3% -5% 1% -24% 0.035 $22,465,303 AKE Allkem Limited 0% 0% 18% -13% 9.83 $6,304,350,967 PLL Piedmont Lithium Inc -3% -13% 1% -49% 0.375 $141,540,168 PLS Pilbara Min Ltd -3% -4% 18% 2% 3.8 $11,767,019,665 QPM Queensland Pacific -4% -10% -5% -53% 0.0495 $104,652,096 PSC Prospect Res Ltd -3% -1% 7% -23% 0.088 $42,163,209 RLC Reedy Lagoon Corp. 0% 0% -17% -48% 0.005 $3,097,704 SYA Sayona Mining Ltd -6% -20% 7% -73% 0.0565 $627,891,057 TKL Traka Resources -33% 0% -5% -52% 0.003 $2,625,988 TON Triton Min Ltd 0% -4% 10% -42% 0.022 $34,349,911 VUL Vulcan Energy -3% -16% 5% -65% 2.38 $425,020,330 GL1 Globallith -15% -21% -23% -49% 0.955 $291,497,135 BMM Balkanminingandmin -9% -9% -23% -68% 0.1 $7,814,456 LEL Lithenergy -3% -5% -6% -27% 0.545 $57,685,600 ARN Aldoro Resources -13% -23% 16% -60% 0.096 $15,481,730 NMT Neometals Ltd -3% -14% -3% -78% 0.18 $115,197,708 IGO IGO Limited -2% -7% 13% -37% 8.445 $6,512,503,192 AAJ Aruma Resources Ltd -4% -4% -16% -51% 0.026 $5,316,071 PAM Pan Asia Metals 3% 40% 30% -57% 0.175 $29,367,936 AX8 Accelerate Resources 3% -7% 3% 63% 0.039 $22,350,968 AM7 Arcadia Minerals 0% -5% -19% -66% 0.069 $7,524,457 AS2 Askarimetalslimited 0% 0% 0% -65% 0.175 $13,606,287 BYH Bryah Resources Ltd 7% 15% 15% -37% 0.015 $6,070,502 EMS Eastern Metals 0% 3% 13% -52% 0.036 $2,967,345 FG1 Flynngold 6% 2% -17% -47% 0.053 $7,286,213 FRS Forrestaniaresources 0% 7% 3% -77% 0.03 $4,853,572 GSM Golden State Mining -7% -13% -28% -75% 0.013 $4,190,559 IMI Infinitymining -4% -11% -11% -52% 0.125 $15,437,941 LRV Larvottoresources 0% 0% -4% -50% 0.07 $14,874,940 MMC Mitremining 0% -11% -17% -11% 0.24 $13,605,030 RAG Ragnar Metals Ltd 0% -4% 10% 85% 0.023 $10,901,562 CTN Catalina Resources 0% -11% 33% -56% 0.004 $4,953,948 TMB Tambourahmetals -4% -4% -24% 5% 0.11 $9,538,141 TEM Tempest Minerals 13% 13% 13% -61% 0.009 $4,091,068 EMC Everest Metals Corp 1% 0% -4% 0% 0.08 $12,899,366 WCN White Cliff Min Ltd 11% 11% -9% -17% 0.01 $11,489,034 WML Woomera Mining Ltd 8% -7% -7% 50% 0.027 $30,453,475 AZL Arizona Lithium Ltd -6% -5% -18% -55% 0.0295 $113,858,997 CRR Critical Resources -10% -14% -18% -57% 0.018 $35,557,006 KGD Kula Gold Limited -6% 7% -27% -36% 0.016 $7,129,218 LRS Latin Resources Ltd -3% -20% 34% 98% 0.2275 $656,544,457 PNN Power Minerals Ltd 0% -2% 3% -59% 0.205 $17,912,101 WR1 Winsome Resources -7% -15% -16% -29% 0.89 $180,259,999 KZR Kalamazoo Resources -19% 4% -4% -47% 0.125 $26,562,268 MTM MTM Critical Metals -8% 62% 340% 47% 0.11 $11,932,450 QXR Qx Resources Limited -4% 0% -12% -51% 0.023 $26,641,868 SCN Scorpion Minerals -3% -3% -18% -55% 0.032 $13,512,054 AZI Altamin Limited 7% 5% 18% -27% 0.058 $23,118,585 ENT Enterprise Metals 0% 0% 33% -60% 0.004 $3,207,884 KAI Kairos Minerals Ltd 7% 7% 0% -31% 0.015 $36,692,771 STM Sunstone Metals Ltd -7% -13% -13% -64% 0.013 $48,828,288 PGD Peregrine Gold -7% 23% 7% -23% 0.295 $20,098,944 AVW Avira Resources Ltd 0% -25% -25% -40% 0.0015 $3,200,685 NVA Nova Minerals Ltd -1% 3% 25% -47% 0.37 $75,920,386 GT1 Greentechnology -4% -9% -13% -69% 0.26 $85,658,066 BNR Bulletin Res Ltd -3% 0% 22% 40% 0.14 $42,573,932 CAI Calidus Resources -2% -7% 3% -33% 0.2 $125,413,126 MRR Minrex Resources Ltd -15% -18% -18% -59% 0.014 $17,900,314 A8G Australasian Metals 0% -12% -12% -28% 0.15 $7,818,074 EFE Eastern Resources 0% 13% 0% -68% 0.009 $11,177,518 MQR Marquee Resource Ltd 0% 8% 12% -15% 0.028 $11,574,763 SRZ Stellar Resources 0% 14% -11% -43% 0.008 $9,192,212 LSR Lodestar Minerals -25% -25% -33% -33% 0.003 $8,093,589 NWM Norwest Minerals 0% 19% 7% -37% 0.032 $9,202,224 AOA Ausmon Resorces 0% 0% 0% -50% 0.003 $3,020,998 VKA Viking Mines Ltd 7% 14% 33% 60% 0.016 $14,353,618 IPT Impact Minerals 8% 18% 18% 86% 0.013 $34,376,447 SRI Sipa Resources Ltd 0% 4% 13% -19% 0.026 $5,932,112 VMC Venus Metals Cor Ltd 0% 0% 0% 32% 0.1 $18,972,868 RGL Riversgold -4% 4% -22% -58% 0.0125 $12,579,599 ZNC Zenith Minerals Ltd 0% -10% -4% -47% 0.135 $47,571,419 RAS Ragusa Minerals Ltd -20% -3% -13% -71% 0.035 $5,703,951 G88 Golden Mile Res Ltd 11% 5% 0% -10% 0.02 $5,929,011 EPM Eclipse Metals 0% 0% -11% -56% 0.008 $16,500,434 EVR Ev Resources Ltd 8% 9% 20% -20% 0.012 $13,195,060 WC8 Wildcat Resources -3% -4% 1% 2458% 0.665 $825,080,003 MNS Magnis Energy Tech 0% 0% 0% -89% 0.042 $50,378,922 RIO Rio Tinto Limited -1% -3% 4% 12% 131.05 $49,134,178,085 THR Thor Energy PLC 0% -3% -6% -55% 0.029 $5,395,054 YAR Yari Minerals Ltd 0% -4% -8% -35% 0.011 $5,305,936 MXR Maximus Resources 0% -3% -21% -15% 0.034 $10,900,596 DRE Dreadnought Resources Ltd -3% -7% -14% -71% 0.028 $100,893,116 MM1 Midasmineralsltd 0% -4% 13% -33% 0.135 $11,710,878 M2R Miramar 0% 10% 21% -70% 0.023 $3,424,000 LLI Loyal Lithium Ltd -16% 19% 12% 23% 0.37 $37,479,294 LRD Lordresourceslimited 13% 0% -16% -66% 0.063 $2,042,267 WMC Wiluna Mining Corp 0% 0% 0% 0% 0.205 $74,238,031 AUN Aurumin 0% 12% 21% -54% 0.029 $10,394,849 ZEO Zeotech Limited -3% -9% -22% -29% 0.029 $52,002,692 ALY Alchemy Resource Ltd 0% 0% 0% -62% 0.01 $11,780,763 LIS Lisenergylimited 9% -3% 3% -49% 0.175 $102,432,037 GW1 Greenwing Resources -4% -7% 19% -55% 0.125 $22,652,693 KTA Krakatoa Resources -8% 0% -5% -18% 0.036 $18,412,182 TYX Tyranna Res Ltd -6% 0% 0% -23% 0.017 $59,173,656 DAF Discovery Alaska Ltd 0% 53% 71% -9% 0.029 $6,792,806 FTL Firetail Resources 0% -3% -13% -50% 0.075 $11,167,917 IR1 Irismetals -6% -8% -24% -26% 0.855 $117,183,909 LNR Lanthanein Resources 0% -4% 83% -48% 0.011 $14,187,931 DAL Dalaroometalsltd 4% 9% -8% -76% 0.024 $1,903,250 TKM Trek Metals Ltd 0% -3% -13% -48% 0.039 $20,009,998 CY5 Cygnus Metals Ltd 0% -11% -13% -69% 0.12 $34,987,097 TUL Tulla Resources 0% -100% -100% -100% 0 $118,262,971 WES Wesfarmers Limited -1% -1% 7% 21% 56.34 $64,353,218,640 LLL Leolithiumlimited 0% 0% 0% -1% 0.505 $498,553,663 OCN Oceanalithiumlimited -9% -17% -20% -74% 0.1 $5,948,415 A11 Atlantic Lithium -10% 1% -21% -38% 0.4 $271,082,096 CMD Cassius Mining Ltd -5% -5% 12% 90% 0.038 $20,104,422 VSR Voltaic Strategic -10% 0% -5% -14% 0.019 $10,145,182 SGQ St George Min Ltd -3% 0% -7% -50% 0.034 $34,444,503 LLO Lion One Metals Ltd 0% 3% -1% -23% 0.965 $14,518,159 PAT Patriot Lithium -11% -11% -16% -40% 0.16 $12,333,084 PL3 Patagonia Lithium -7% 4% 0% 0% 0.135 $7,123,633 BUR Burleyminerals -9% -9% -6% -15% 0.15 $17,043,965 CHR Charger Metals 0% 3% -29% -62% 0.17 $12,361,443 RMX Red Mount Min Ltd 0% 0% -25% -33% 0.003 $8,020,728 DLI Delta Lithium -17% -26% -20% -18% 0.35 $298,803,915 LM1 Leeuwin Metals Ltd 0% 0% -24% 0% 0.14 $6,442,188 ENT Enterprise Metals 0% 0% 33% -60% 0.004 $3,207,884 FIN FIN Resources Ltd -4% 0% 16% 29% 0.022 $14,933,180 DTM Dart Mining NL 0% -6% -6% -74% 0.016 $3,641,274 NIS Nickelsearch -5% -5% -18% -58% 0.069 $15,588,599 EG1 Evergreenlithium 0% -11% -15% 0% 0.17 $9,559,100 MAN Mandrake Res Ltd -5% -9% -3% 3% 0.039 $25,246,157 FBM Future Battery -5% -1% 0% 38% 0.072 $40,031,699 LPM Lithium Plus -2% -8% -14% -8% 0.325 $27,946,165 KOB Kobaresourceslimited -1% 0% -9% -52% 0.07 $7,484,583 EMC Everest Metals Corp 1% 0% -4% 0% 0.08 $12,899,366 LRD Lordresourceslimited 13% 0% -16% -66% 0.063 $2,042,267 IEC Intra Energy Corp 0% 0% -25% -63% 0.003 $4,982,345 REC Rechargemetals -11% -2% -15% -31% 0.093 $11,691,957 SLM Solismineralsltd 17% 3% 0% 100% 0.15 $11,368,102 AZS Azure Minerals -1% 0% 3% 1502% 3.685 $1,697,114,428 DYM Dynamicmetalslimited -18% 11% 7% 0% 0.155 $6,650,000 TOR Torque Met 0% 0% 26% 19% 0.22 $29,570,418 SBR Sabre Resources 3% -9% 3% -23% 0.03 $10,500,574 ICL Iceni Gold 0% 25% 8% -24% 0.065 $15,883,214 TMX Terrain Minerals 0% 0% 0% -17% 0.005 $6,767,139 MHC Manhattan Corp Ltd 17% -13% -13% -42% 0.0035 $8,810,939 MHK Metalhawk. -19% -22% -32% -36% 0.105 $12,923,878 NKL Nickelxltd -4% 19% -21% -45% 0.044 $4,039,498 TMB Tambourahmetals -4% -4% -24% 5% 0.11 $9,538,141 ANX Anax Metals Ltd 0% 0% 15% -43% 0.03 $14,427,529 PMT Patriotbatterymetals -5% -12% -3% 45% 0.9925 $480,324,653 BM8 Battery Age Minerals -5% 11% 14% -58% 0.21 $19,610,115 L1M Lightning Minerals 0% -11% -14% -31% 0.125 $5,278,133 ADG Adelong Gold Limited -9% 0% 0% -29% 0.005 $3,848,106 TOR Torque Met 0% 0% 26% 19% 0.22 $29,570,418 AL8 Alderan Resource Ltd 0% 0% -17% -38% 0.005 $5,534,307 OZM Ozaurum Resources -8% -20% 14% 82% 0.12 $20,637,500 FL1 First Lithium Ltd -10% -18% -27% 133% 0.42 $32,924,283 PLN Pioneer Lithium 0% -5% -21% 0% 0.19 $5,400,750 WYX Western Yilgarn NL -12% -8% -3% -23% 0.092 $5,214,038 RDN Raiden Resources Ltd -3% -5% 6% 700% 0.038 $100,881,924 PFE Panteraminerals 2% -2% -14% -54% 0.051 $6,631,127 GRE Greentechmetals -1% -10% 1% 177% 0.415 $27,938,633 OLY Olympio Metals Ltd 10% 0% -25% -28% 0.105 $6,359,950 SUM Summitminerals -3% -2% -16% -39% 0.097 $4,765,713 JBY James Bay Minerals -8% -13% -20% 0% 0.275 $9,733,500 SCN Scorpion Minerals -3% -3% -18% -55% 0.032 $13,512,054 JNO Juno -4% 0% 11% 18% 0.11 $20,923,705 CC9 Chariot Corporation -10% -7% -18% 0% 0.5 $40,699,020 OBM Ora Banda Mining Ltd 0% 2% 2% 169% 0.245 $418,158,618 RON Roninresourcesltd 0% -3% -10% 9% 0.18 $6,628,502 ASR Asra Minerals Ltd 0% 0% -13% -63% 0.007 $11,455,470 KM1 Kali Metals 72% – – – 0.43 – PFE Panteraminerals 2% -2% -14% -54% 0.051 $6,631,127 TG6 Tgmetalslimited -1% -9% -50% 233% 0.35 $19,200,589 HAW Hawthorn Resources 0% 13% 7% -13% 0.105 $35,176,639
WordPress Table Plugin
The post Eye on Lithium: Kali bursts onto ASX, Core dips further, Morningstar predicts 2024 turnaround appeared first on Stockhead.
+ There are no comments
Add yours