The lithium futures contango, if you know what that is, is continuing to provide market hopium
Meanwhile investment banker firm Morgan Stanley issues positive note on lithium… with caveat
ASX lithium gainers include: GL1, LRS, GT1, GLN
What did we learn about this and that pertaining to lithium here and there on Wednesday, February 28? Let’s find out…
Lithium stocks on the local bourse are, for the most part, having a pretty fair old time of it today as we head towards another closing bell.
And this includes some big, BIG guns, too, such as lithium miners Pilbara Minerals (ASX:PLS) and IGO (ASX:IGO), which have both climbed 5% each.
Why? There are a coupla things to note. Firstly…
Contango fandango
Scaramouche, Scaramouche, will you do the contango?
The lithium futures contango, that is.
As noted by lithium analyst Juan Carlos Zuleta (yes, this columnist is a broken record here of late, but he’s a beaut and OG source for this particular, growing narrative) among others… The lithium futures contango continues to play out and continues to provide a struggling lithium market some hopium.
According to Investopedia, contango, by the way, means:
“A futures market occurrence marked by futures contract prices rising above spot prices. It means that traders and investors anticipate an increase in prices in the coming months. The opposite of contango is backwardation, when futures prices are lower than spot prices.”
And for the sake of being complete, Scaramouche is a word that means cowardly buffoon, taken from the French, which also means cowardly buffoon.
Around yesterday’s ASX close, Chinese lithium futures were trading around 1.2% higher. About three hours later, they were about 3.4% higher again and, according to Market Index data, 106,650 yuan a tonne and the highest level since January 3.
The #lithium futures market is going crazy right now. As a result, stock prices of mining companies in #China (https://t.co/WjhwFPl5QW, https://t.co/N3g5O2o63S) and in #Australia (https://t.co/twRHdFw7hy, https://t.co/qOcf7ur66K, https://t.co/r7gX0llPGa) are skyrocketing. pic.twitter.com/RILsSxeN3G
— Juan Carlos Zuleta (@jczuleta) February 28, 2024
So that’s one reason. The other, which another prominent lithium expert – Joe “Mr Lithium” Lowry – says is ironic, is this…
Morgan Stanley flips positive… kinda
Ironically @MorganStanley is talking positively about #lithium sentiment. pic.twitter.com/5n1W2Ld96F
— Joe Lowry (@globallithium) February 27, 2024
US multinational investment bank Morgan Stanley has released a bit of an eyebrow-raising positive take on the lithium market, especially given the tendency for investment banks (looking at you, too Goldman Sachs) to sink the boot into this sector over the past year or so.
Here’s some of what MS’s analysts had to impart, particularly regarding increasing supply chain disruptions in China, potentially providing a boost to lithium industry outside of the Asian superpower:
“We have learned that the Yichun government is requiring local lithium converters to: 1) Initiate self-inspection on environmental protection issues ahead of government inspections; 2) Track the direction of refining slags since late last year; and 3) Temporarily suspend transportation of refining slags across districts pending further classification of these refining slags.”
“Some local lithium producers in Yichun … have kept their operations suspended. The need for self-inspection may prolong these suspensions in the near term.
“Overall, we think the current supply disruptions and concerns will lift near-term market sentiment as lithium output in Yichun accounted for around 20% of China’s total lithium production and approximately 13% of global supply in 2023, according to SSM.”
“On the other hand, if the classification of refining slags is finalised, and no environmental protection-related issues are defined, we believe supply disruption will only be temporary.”
We’ll keep at least one eye on it.
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]
CODE COMPANY TODAY WEEK 1 MONTH % 12 MONTH % PRICE MARKET CAP ADV Ardiden Ltd -16% -13% -16% -55% 0.135 $10,002,801 AGY Argosy Minerals Ltd 4% 18% 43% -81% 0.13 $175,550,937 1MC Morella Corporation 0% 0% -13% -68% 0.0035 $21,625,798 AML Aeon Metals Ltd. 20% -14% -33% -74% 0.006 $5,482,003 ASN Anson Resources Ltd 2% 7% -6% -52% 0.091 $114,518,810 AVZ AVZ Minerals Ltd 0% 0% 0% 0% 0.78 $2,752,409,203 CXO Core Lithium -2% -2% 19% -76% 0.22 $480,810,497 EMH European Metals Hldg 3% 0% -3% -48% 0.31 $37,705,655 EUR European Lithium Ltd 0% 0% 2% 26% 0.086 $119,904,569 GLN Galan Lithium Ltd 14% 21% -26% -64% 0.4 $136,269,646 INF Infinity Lithium -6% -9% -19% -35% 0.072 $35,619,591 INR Ioneer Ltd 6% 14% 36% -61% 0.1425 $285,121,640 JLL Jindalee Lithium Ltd -8% -11% -22% -68% 0.785 $51,416,599 LIT Lithium Australia -4% -7% -7% -33% 0.027 $34,221,367 LKE Lake Resources 7% -2% 36% -79% 0.1225 $163,768,108 LPD Lepidico Ltd 0% 0% 0% -57% 0.006 $45,829,848 LPI Lithium Pwr Int Ltd 1% 0% -3% 66% 0.54 $342,683,100 LTR Liontown Resources 9% 7% 37% -4% 1.26 $2,798,852,044 MIN Mineral Resources. 4% 13% 13% -16% 66.905 $12,610,995,113 MLS Metals Australia 0% -10% -18% -46% 0.027 $16,848,977 AKE Allkem Limited 0% -100% -100% -100% 0 $6,304,350,967 PLL Piedmont Lithium Inc 12% -6% -18% -76% 0.2125 $73,303,615 PLS Pilbara Min Ltd 7% 17% 18% -1% 4.16 $11,676,735,627 QPM Queensland Pacific -3% -8% -12% -63% 0.036 $74,463,992 PSC Prospect Res Ltd -3% -8% -14% -65% 0.066 $31,506,573 RLC Reedy Lagoon Corp. 0% 25% 0% -35% 0.005 $3,097,704 SYA Sayona Mining Ltd 6% -30% 4% -82% 0.0415 $401,438,545 TKL Traka Resources 0% 0% -25% -73% 0.0015 $2,625,988 TON Triton Min Ltd 0% -11% -16% -52% 0.016 $24,982,283 VUL Vulcan Energy 9% 15% 13% -61% 2.41 $382,002,078 GL1 Globallith 15% 9% 7% -63% 0.57 $128,831,323 BMM Balkanminingandmin 4% 0% -18% -81% 0.074 $5,043,876 LEL Lithenergy 8% 50% 39% -19% 0.585 $55,625,400 ARN Aldoro Resources -10% 0% 8% -41% 0.095 $14,135,493 NMT Neometals Ltd -2% -2% -15% -83% 0.1325 $84,063,193 IGO IGO Limited 6% 15% 7% -38% 8.025 $5,755,235,379 AAJ Aruma Resources Ltd 0% -6% -25% -76% 0.015 $2,953,373 PAM Pan Asia Metals 0% 0% 7% -57% 0.16 $26,850,684 AX8 Accelerate Resources 6% 2% -2% 14% 0.0285 $16,469,226 AM7 Arcadia Minerals 0% 24% 3% -70% 0.072 $7,851,607 AS2 Askarimetalslimited -4% 3% -38% -86% 0.081 $6,547,818 BYH Bryah Resources Ltd 14% -20% -33% -61% 0.008 $3,048,175 EMS Eastern Metals 0% -13% -3% -49% 0.035 $2,884,919 FG1 Flynngold -4% -15% -33% -27% 0.046 $7,878,764 FRS Forrestaniaresources 0% -5% -30% -85% 0.021 $3,397,501 GSM Golden State Mining -10% -18% -18% -76% 0.009 $2,793,706 IMI Infinitymining 0% -9% -9% -49% 0.1 $11,875,339 LRV Larvottoresources -1% -2% -9% -57% 0.0625 $14,087,534 MMC Mitremining 5% 11% 48% -3% 0.295 $24,966,176 RAG Ragnar Metals Ltd 0% -5% -9% 31% 0.02 $9,479,619 CTN Catalina Resources 0% 25% 67% -17% 0.005 $6,192,434 TMB Tambourahmetals -7% -16% 7% -16% 0.088 $7,879,334 TEM Tempest Minerals 0% 0% -13% -70% 0.007 $3,633,871 EMC Everest Metals Corp 0% 6% 9% 1% 0.085 $13,964,064 WCN White Cliff Min Ltd 0% -12% 0% 36% 0.015 $20,069,122 WML Woomera Mining Ltd 11% 0% -17% -62% 0.005 $5,481,625 AZL Arizona Lithium Ltd 9% -4% 9% -58% 0.025 $87,662,602 CRR Critical Resources -6% 6% 31% -65% 0.017 $32,001,305 KGD Kula Gold Limited 0% -20% -20% -64% 0.008 $3,385,695 LRS Latin Resources Ltd 16% 10% 33% 100% 0.22 $531,310,198 PNN Power Minerals Ltd 9% 19% 15% -53% 0.19 $15,290,818 WR1 Winsome Resources 5% 5% 29% -61% 0.775 $140,227,012 KZR Kalamazoo Resources -1% -10% -1% -42% 0.099 $17,480,354 MTM MTM Critical Metals -10% -2% 13% -14% 0.09 $12,429,636 QXR Qx Resources Limited 5% 0% 18% -47% 0.02 $21,091,479 SCN Scorpion Minerals 0% 0% -36% -74% 0.018 $7,370,211 AZI Altamin Limited 0% -2% -13% -37% 0.048 $21,064,754 ENT Enterprise Metals 0% 0% -25% -63% 0.003 $2,405,913 KAI Kairos Minerals Ltd 0% -14% 0% -31% 0.012 $31,450,946 STM Sunstone Metals Ltd 11% -9% -17% -71% 0.01 $31,505,864 PGD Peregrine Gold 0% -4% -28% -46% 0.23 $15,543,037 AVW Avira Resources Ltd 0% -33% 0% -67% 0.001 $2,133,790 NVA Nova Minerals Ltd -4% 2% -24% -50% 0.265 $57,994,767 GT1 Greentechnology 15% 3% 0% -77% 0.15 $41,437,773 BNR Bulletin Res Ltd -7% -7% -13% -32% 0.075 $23,782,679 CAI Calidus Resources 0% -6% -12% -35% 0.15 $91,894,073 MRR Minrex Resources Ltd 8% 8% 0% -53% 0.014 $14,103,278 A8G Australasian Metals 0% -9% -36% -53% 0.08 $4,169,640 EFE Eastern Resources 0% -13% 0% -56% 0.007 $8,693,625 MQR Marquee Resource Ltd 0% 5% 5% -30% 0.021 $8,681,072 SRZ Stellar Resources -6% 21% 21% -15% 0.0085 $10,341,238 LSR Lodestar Minerals 0% 0% -33% -60% 0.002 $4,046,795 NWM Norwest Minerals -13% -24% 4% -21% 0.026 $10,271,085 AOA Ausmon Resorces 0% 0% 0% -40% 0.003 $3,176,998 VKA Viking Mines Ltd 0% -8% -15% 10% 0.011 $11,277,843 IPT Impact Minerals 0% -8% 0% 20% 0.012 $34,376,447 SRI Sipa Resources Ltd -5% -14% -10% -30% 0.019 $4,563,163 VMC Venus Metals Cor Ltd 0% -1% 0% 22% 0.096 $18,213,954 RGL Riversgold 0% 13% -10% -59% 0.009 $8,708,953 ZNC Zenith Minerals Ltd -8% -11% -47% -62% 0.085 $32,419,041 RAS Ragusa Minerals Ltd 0% -8% -23% -77% 0.023 $3,279,772 G88 Golden Mile Res Ltd 0% -8% -27% -46% 0.011 $4,523,451 EPM Eclipse Metals 0% 0% -13% -65% 0.007 $14,525,380 EVR Ev Resources Ltd -7% -7% 30% -13% 0.013 $16,164,237 WC8 Wildcat Resources 10% 19% 68% 2239% 0.655 $711,523,683 MNS Magnis Energy Tech 0% 0% 0% -88% 0.042 $50,378,922 RIO Rio Tinto Limited 0% -3% -7% 7% 123.6 $45,707,852,430 THR Thor Energy PLC 0% 0% -26% -53% 0.026 $4,830,075 YAR Yari Minerals Ltd 0% -25% -40% -70% 0.006 $2,894,147 MXR Maximus Resources -6% -9% -11% -11% 0.031 $10,591,210 DRE Dreadnought Resources Ltd 0% -5% -18% -77% 0.018 $62,668,313 MM1 Midasmineralsltd 4% -6% -23% -47% 0.085 $7,113,274 M2R Miramar -6% -11% -29% -75% 0.017 $2,679,652 LLI Loyal Lithium Ltd 2% 4% 8% -17% 0.275 $22,487,576 LRD Lordresourceslimited 0% -6% -14% -67% 0.051 $1,893,738 WMC Wiluna Mining Corp 0% 0% 0% 0% 0.205 $74,238,031 AUN Aurumin -3% -15% 18% -34% 0.033 $12,187,065 ZEO Zeotech Limited -8% -25% -17% -50% 0.024 $45,069,000 ALY Alchemy Resource Ltd 0% 0% 0% -47% 0.008 $9,424,610 LIS Lisenergylimited 0% -13% -10% -50% 0.14 $89,628,032 GW1 Greenwing Resources 11% 0% -16% -64% 0.08 $13,050,107 KTA Krakatoa Resources 0% -7% -30% -64% 0.014 $6,609,501 TYX Tyranna Res Ltd 9% -14% -14% -50% 0.012 $36,161,679 DAF Discovery Alaska Ltd 0% -20% -41% -41% 0.016 $3,747,755 FTL Firetail Resources -4% 0% -25% -70% 0.045 $6,998,561 IR1 Irismetals -28% -41% -25% -67% 0.38 $68,005,866 LNR Lanthanein Resources 0% -17% -17% -74% 0.005 $6,449,060 DAL Dalaroometalsltd 0% 0% -5% -75% 0.02 $1,655,000 TKM Trek Metals Ltd 3% -17% -8% -44% 0.035 $17,444,613 CY5 Cygnus Metals Ltd -3% -13% -23% -81% 0.058 $17,493,548 TUL Tulla Resources 0% -100% -100% -100% 0 $118,262,971 WES Wesfarmers Limited -1% 5% 13% 36% 66.1 $75,524,864,809 LLL Leolithiumlimited 0% 0% 0% 0% 0.505 $498,553,663 OCN Oceanalithiumlimited 3% 16% -17% -81% 0.064 $3,352,743 A11 Atlantic Lithium 7% -2% 13% -38% 0.395 $240,377,550 CMD Cassius Mining Ltd -9% -6% -11% -6% 0.031 $18,428,153 VSR Voltaic Strategic 11% 5% 18% 0% 0.02 $8,695,870 SGQ St George Min Ltd 0% -9% -25% -70% 0.021 $20,759,349 LLO Lion One Metals Ltd 0% 0% -27% -30% 0.62 $9,586,267 PAT Patriot Lithium 0% -24% -39% -77% 0.076 $5,290,902 PL3 Patagonia Lithium -3% -6% 39% 0% 0.16 $8,106,203 BUR Burleyminerals 3% -10% -53% -77% 0.063 $6,301,102 CHR Charger Metals 4% 0% 0% -56% 0.13 $9,677,531 RMX Red Mount Min Ltd 0% 0% -33% -60% 0.002 $5,347,152 DLI Delta Lithium 12% 3% 18% -18% 0.325 $206,427,696 LM1 Leeuwin Metals Ltd -5% -8% -33% 0% 0.084 $4,122,947 ENT Enterprise Metals 0% 0% -25% -63% 0.003 $2,405,913 FIN FIN Resources Ltd 0% 0% -6% 0% 0.015 $9,739,031 DTM Dart Mining NL 0% 8% 0% -69% 0.014 $3,186,115 NIS Nickelsearch -3% -6% -29% -65% 0.032 $7,046,901 EG1 Evergreenlithium -5% 0% -13% 0% 0.1 $5,904,150 MAN Mandrake Res Ltd -3% -3% 0% -30% 0.038 $24,014,637 FBM Future Battery 10% -7% 0% 0% 0.057 $27,755,311 LPM Lithium Plus 3% 3% -20% -37% 0.18 $15,047,935 KOB Kobaresourceslimited 0% -23% -18% -21% 0.115 $14,997,917 EMC Everest Metals Corp 0% 6% 9% 1% 0.085 $13,964,064 LRD Lordresourceslimited 0% -6% -14% -67% 0.051 $1,893,738 IEC Intra Energy Corp 0% 25% -17% -58% 0.0025 $4,226,954 REC Rechargemetals 0% -19% -12% -53% 0.071 $7,905,990 SLM Solismineralsltd 0% -4% -11% -25% 0.12 $9,418,650 AZS Azure Minerals 0% -2% -2% 1121% 3.54 $1,623,725,696 DYM Dynamicmetalslimited 0% -14% 15% -3% 0.155 $5,580,000 TOR Torque Met 9% 3% -13% 9% 0.175 $24,488,564 SBR Sabre Resources -5% -14% -33% -44% 0.018 $7,110,977 ICL Iceni Gold -6% -55% -63% -82% 0.017 $4,438,099 TMX Terrain Minerals 25% 11% 0% -17% 0.005 $5,726,683 MHC Manhattan Corp Ltd 0% 0% -25% -50% 0.003 $8,810,939 MHK Metalhawk. -3% -13% -34% -48% 0.065 $6,660,768 NKL Nickelxltd 0% 3% -8% -50% 0.037 $3,249,161 TMB Tambourahmetals -7% -16% 7% -16% 0.088 $7,879,334 ANX Anax Metals Ltd 6% -10% -5% -72% 0.019 $9,764,063 PMT Patriotbatterymetals 11% 5% 5% -39% 0.89 $452,665,322 BM8 Battery Age Minerals -3% 10% -6% -67% 0.16 $15,140,452 L1M Lightning Minerals 0% 1% -24% -52% 0.072 $3,040,205 ADG Adelong Gold Limited 0% 0% 0% -44% 0.005 $3,498,278 TOR Torque Met 9% 3% -13% 9% 0.175 $24,488,564 AL8 Alderan Resource Ltd 0% 11% 25% -29% 0.005 $5,534,307 OZM Ozaurum Resources -6% -15% -16% 27% 0.066 $11,112,500 FL1 First Lithium Ltd -4% -11% -8% 31% 0.235 $17,162,658 PLN Pioneer Lithium 0% -14% -9% 0% 0.155 $4,405,875 WYX Western Yilgarn NL -12% -17% -20% -26% 0.074 $4,196,059 RDN Raiden Resources Ltd -2% -6% -6% 416% 0.0245 $66,414,628 PFE Panteraminerals -2% -11% -4% -57% 0.047 $6,365,882 GRE Greentechmetals 2% 0% -10% 74% 0.235 $19,338,394 OLY Olympio Metals Ltd 3% 0% 13% -33% 0.09 $5,533,156 SUM Summitminerals 7% -4% 7% -50% 0.075 $3,335,999 JBY James Bay Minerals -3% -11% -20% 0% 0.16 $5,353,425 SCN Scorpion Minerals 0% 0% -36% -74% 0.018 $7,370,211 JNO Juno 4% -8% -26% -19% 0.07 $12,190,332 CC9 Chariot Corporation 2% -3% -19% 0% 0.29 $23,309,112 OBM Ora Banda Mining Ltd 0% 2% 11% 155% 0.255 $435,415,555 RON Roninresourcesltd 0% -8% -26% -28% 0.115 $4,234,876 ASR Asra Minerals Ltd 0% 20% -14% -50% 0.006 $9,918,974 PFE Panteraminerals -2% -11% -4% -57% 0.047 $6,365,882 TG6 Tgmetalslimited -5% 10% 14% 128% 0.285 $16,225,850 HAW Hawthorn Resources 0% -4% -18% -20% 0.08 $26,801,249 KM1 Kalimetalslimited 5% -2% -21% 0% 0.41 $29,773,417 AEV Avenira Limited 0% 0% -17% -29% 0.01 $21,925,716
Charged up
Terrain Minerals (ASX:TMX) +25%
Latin Resources (ASX:LRS) +16%
Global Lithium Resources (ASX:GL1) +15%
And in other lithium related news…
Azure Minerals (ASX:ASZ) has confirmed all competition law approvals for its joint takeover by SQM and Hancock Prospecting (now officially known as SH Mining) have been obtained, meaning a significant chunk of the conditions precedent for the high-profile transaction are now satisfied.
The proposed takeover still remains subject to a number of other conditions which need to be satisfied or waived before SH Mining can take control of Azure and the amazing Andover lithium discovery in the Pilbara.Azure’s board continues to unanimously recommend SH Mining’s cash offer of $3.70/share.
Anson Resources (ASX:ASN) has begun the “surface” phase of drilling at its Green River lithium project in Utah, having completed the “conductor” phase down to a depth of 80ft.
This “surface” phase involves drilling down to 1,500ft at the Bosydaba #1 well targeting the lithium-rich brines in the Clastic horizons and the Mississippian units.
The well is located on a recently purchased private property in the Paradox Basin.Anson says it designed the drilling program such that there is no interaction between the surface waters and the supersaturated lithium brines.
Galan Lithium’s (ASX:GLN) Pond 1 earthworks and liner installation are now complete, allowing the company to move ahead with evaporation activities, which represent the first step in GL1’s long-term production schedule. Read more on that > here.
Future Battery Minerals (ASX:FBM) has received ministerial approval for the new Conservation Management Plan (CMP) over the northern area of its Kangaroo Hills project. This marks a key awaited milestone in the approvals process for drilling. More > here.
At Stockhead we tell it like it is. While ASZ, ASN, GL1 and FBM are Stockhead advertisers at the time of writing, they did not sponsor this article.
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