Azure’s potential takeover by mining titans Hancock Prospecting and SQM takes another step forward
Lithium spot prices appear to be on the up, and dare we say it… finally bottomed out?
Glut? What glut?… says Joe “Mr Lithium” Lowry
What did we learn about this and that pertaining to lithium here and there on Monday, March 4? Let’s find out…
First and foremost, we found out that lithium spot prices have indeed responded very encouragingly to the lithium futures burst higher – the contango fandago that’s been playing out for weeks now.
Have a gander at the Lithium Price Bot. It’s the tastiest it’s looked in quite some time, with actual positive figures to boot.
2024-03-01#Lithium Carbonate 99.5% Min China Spot
Price: $14,237.25
1 day: $416.70 (3.02%)
YTD: 4.06%#Spodumene Concentrate (6%, CIF China)
Price: $964.00
1 day: $16.0 (1.69%)
YTD: -26.69%
Sponsored by @portofino_porhttps://t.co/a7sfmtRZsp
— Lithium Price Bot (@LithiumPriceBot) March 1, 2024
It’s a delayed Christmas miracle.
Actually, hardly, not really. That’s according to die-hard lithium backers and experts, such as Joe “Mr Lithium Lowry – host of the Global Lithium podcast – for instance, who posted some typically “them’s fighting words” a bit earlier to his LinkedIn account:
“A matter of perspective. No credible voice believes there is a “glut”of battery quality lithium supply. Clickbait headlines abound.”
Hmm, don’t think we’ve ever used the word glut to describe the lithium supply glu… ah, never mind.
“Yes, due to a drawdown in battery supply chain inventories and China’s rush to produce unsustainable low grade materials (not viable at current prices), price came down from ridiculous panic induced highs of 2022,” continued Messrs Lithium, adding:
“Look at the record – the current prices are relatively HIGH by historical standards.
“Do I believe price goes up from here? Yes, but producers like SQM & Pilbara Minerals Limited are showing insight not bravery by forging ahead with expansions.
“An industry going through 10X growth over this decade is going to be volatile.”
Insight not bravery – dig that bit.
No chance Chile has multiple new #lithium projects “up & running” by 2026. Maybe one by 2028. https://t.co/oEBnb6dBQ4
— Joe Lowry (@globallithium) March 3, 2024
Azure’s Hancock deal progresses
Hancock Prospecting has announced that the proposed joint acquisition with Sociedad Química y Minera de Chile S.A. (SQM) of Azure Minerals (ASX:AZS) has progressed with the release of the Transaction Booklet today.
This follows a recent announcement that competition approvals have been achieved.
Azure is 60% owner/operator (40% Creasy Group) of the renowned, highly prospective Andover lithium and nickel-copper-cobalt project in the west Pilbara region of WA.
Essentially what needs to happen next is approval of the deal from Azure shareholders, and Hancock and SQM have indicated now’s the time to take the $1.7 billion offer lest lithium prices plunge again.
An independent expert overseeing the deal has determined that the joint acquisition is in the “best interests of Azure Shareholders and that the Takeover Offer is fair and reasonable”.
Hancock has reportedly urged Azure shareholders to support the transaction, “to realise immediate value for their shares, and avoid the uncertainties associated with the Andover project as well as lithium market volatility.”
Meanwhile, two major shareholders, Creasy Group (12.8%) and Delphi Group (10.2%) have confirmed they intend to sell all of their shares to the Joint Bidders, in the absence of a superior proposal for Azure.
Hancock Prospecting’s CEO Garry Korte said:
“Hancock is delighted to be progressing the acquisition of Azure in partnership with SQM. Andover has the potential to be a globally significant lithium project of scale and quality.
“Recent short term market volatility has highlighted the need for a long term approach to the development of resource projects. Increasingly there is a need for experienced and well-funded owners that are able to progress development through the increasing challenging approvals processes and unlock the project value.
This transaction provides an opportunity for shareholders to avoid the future uncertainties of project development by supporting the transaction.”
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 7% 0% -17% -50% 0.15 $8,752,451 AGY Argosy Minerals Ltd -16% 17% 38% -82% 0.135 $224,705,200 1MC Morella Corporation -13% 0% -30% -70% 0.0035 $24,715,198 AML Aeon Metals Ltd. 0% 0% -22% -70% 0.007 $7,674,804 ASN Anson Resources Ltd 7% 18% 28% -48% 0.105 $126,099,364 AVZ AVZ Minerals Ltd 0% 0% 0% 0% 0.78 $2,752,409,203 CXO Core Lithium 2% 17% 26% -74% 0.245 $512,864,531 EMH European Metals Hldg -7% 14% 16% -43% 0.335 $45,246,785 EUR European Lithium Ltd -2% -7% -7% 14% 0.08 $114,327,612 GLN Galan Lithium Ltd -5% 31% 2% -64% 0.42 $171,310,412 INF Infinity Lithium 1% 1% -6% -30% 0.073 $33,306,631 INR Ioneer Ltd 7% 15% 29% -58% 0.155 $306,241,761 JLL Jindalee Lithium Ltd 1% -16% -19% -70% 0.78 $46,879,841 LIT Lithium Australia 0% -4% 0% -31% 0.027 $33,001,875 LKE Lake Resources -6% 16% 37% -80% 0.1275 $192,249,518 LPD Lepidico Ltd 8% 8% 8% -54% 0.0065 $45,829,848 LPI Lithium Pwr Int Ltd 1% 6% 1% 55% 0.565 $358,696,328 LTR Liontown Resources 4% 24% 34% -5% 1.33 $3,113,874,352 MIN Mineral Resources. -2% 6% 13% -23% 66.21 $13,243,399,140 MLS Metals Australia 0% -3% -13% -39% 0.028 $19,806,347 AKE Allkem Limited 0% -100% -100% -100% 0 $6,304,350,967 PLL Piedmont Lithium Inc 3% 19% -1% -75% 0.2375 $88,735,955 PLS Pilbara Min Ltd 0% 20% 27% 4% 4.39 $13,181,469,599 QPM Queensland Pacific 3% 0% -3% -59% 0.038 $74,463,992 PSC Prospect Res Ltd -3% -1% -14% -66% 0.069 $32,896,569 RLC Reedy Lagoon Corp. 0% 0% 0% -48% 0.004 $2,478,163 SYA Sayona Mining Ltd -1% 6% 17% -81% 0.0445 $463,198,321 TKL Traka Resources 0% -25% -25% -68% 0.0015 $2,625,988 TON Triton Min Ltd -6% -17% -17% -56% 0.015 $24,982,283 VUL Vulcan Energy -1% 20% 23% -59% 2.55 $442,227,631 GL1 Globallith -2% 28% 29% -60% 0.645 $171,775,097 BMM Balkanminingandmin 0% -9% -9% -80% 0.069 $4,901,795 LEL Lithenergy -7% 13% 50% -26% 0.54 $59,745,800 ARN Aldoro Resources -6% -4% -29% -60% 0.085 $12,116,137 NMT Neometals Ltd 3% 15% 11% -81% 0.155 $93,403,547 IGO IGO Limited -2% 13% 12% -40% 8.14 $6,285,322,848 AAJ Aruma Resources Ltd 7% 7% -24% -74% 0.016 $2,953,373 PAM Pan Asia Metals 0% 0% 0% -57% 0.16 $26,850,684 AX8 Accelerate Resources 10% 31% 31% 21% 0.034 $18,909,111 AM7 Arcadia Minerals -8% 6% 35% -68% 0.074 $8,724,008 AS2 Askarimetalslimited -1% 5% -16% -84% 0.084 $6,764,956 BYH Bryah Resources Ltd -11% -11% -33% -61% 0.008 $3,919,082 EMS Eastern Metals 3% -23% -6% -53% 0.031 $2,472,787 FG1 Flynngold -11% -20% -30% -50% 0.04 $7,386,341 FRS Forrestaniaresources 0% 0% -15% -83% 0.023 $3,721,072 GSM Golden State Mining 10% 10% -15% -71% 0.011 $2,793,706 IMI Infinitymining 0% -26% -19% -55% 0.081 $9,619,025 LRV Larvottoresources 2% -5% -14% -57% 0.06 $13,193,087 MMC Mitremining 4% 4% 21% -3% 0.29 $24,966,176 RAG Ragnar Metals Ltd -5% -10% -14% 25% 0.019 $9,479,619 CTN Catalina Resources 0% -20% -20% -43% 0.004 $4,953,948 TMB Tambourahmetals 0% -3% 10% -16% 0.088 $7,298,751 TEM Tempest Minerals 0% 14% 7% -65% 0.008 $4,152,995 EMC Everest Metals Corp 0% 0% 5% -7% 0.08 $13,142,649 WCN White Cliff Min Ltd 7% 7% 0% 45% 0.016 $20,069,122 WML Woomera Mining Ltd 0% 0% -20% -67% 0.004 $4,872,556 AZL Arizona Lithium Ltd -5% 10% 38% -55% 0.0275 $110,531,107 CRR Critical Resources -6% -6% 21% -64% 0.017 $32,001,305 KGD Kula Gold Limited 0% 0% 33% -60% 0.008 $3,699,695 LRS Latin Resources Ltd 3% 20% 42% 98% 0.2275 $615,872,282 PNN Power Minerals Ltd 0% 20% 40% -52% 0.21 $18,348,981 WR1 Winsome Resources -1% 39% 65% -56% 0.915 $175,522,247 KZR Kalamazoo Resources 0% 2% 4% -45% 0.097 $16,955,943 MTM MTM Critical Metals 0% -10% 18% -38% 0.087 $10,813,783 QXR Qx Resources Limited 0% 17% 40% -45% 0.021 $23,311,635 SCN Scorpion Minerals 20% 88% 20% -57% 0.03 $10,236,405 AZI Altamin Limited 10% 10% 10% -25% 0.055 $21,942,452 ENT Enterprise Metals 0% 0% -25% -63% 0.003 $2,405,913 KAI Kairos Minerals Ltd -7% 8% -13% -25% 0.013 $36,692,771 STM Sunstone Metals Ltd 0% 20% 33% -63% 0.012 $42,007,819 PGD Peregrine Gold 0% 0% -25% -49% 0.235 $15,880,929 AVW Avira Resources Ltd 0% 0% -50% -60% 0.001 $2,133,790 NVA Nova Minerals Ltd 10% 8% -14% -47% 0.285 $54,831,416 GT1 Greentechnology 0% 52% 36% -72% 0.19 $60,562,898 BNR Bulletin Res Ltd -10% -9% -14% -42% 0.07 $22,901,839 CAI Calidus Resources 0% 0% -17% -33% 0.15 $91,894,073 MRR Minrex Resources Ltd 0% 15% 15% -50% 0.015 $16,273,013 A8G Australasian Metals 11% -15% -32% -59% 0.068 $3,179,350 EFE Eastern Resources 0% 0% 14% -50% 0.008 $9,935,572 MQR Marquee Resource Ltd 0% -13% -9% -33% 0.02 $8,267,688 SRZ Stellar Resources 0% 22% 57% -8% 0.011 $15,799,114 LSR Lodestar Minerals 0% 0% -20% -60% 0.002 $4,046,795 NWM Norwest Minerals 3% 7% 33% 0% 0.032 $10,613,455 AOA Ausmon Resorces 0% 50% 20% -50% 0.003 $3,176,998 VKA Viking Mines Ltd 0% 0% -8% 10% 0.011 $11,277,843 IPT Impact Minerals 9% 0% 0% 33% 0.012 $31,511,743 SRI Sipa Resources Ltd 0% -5% -14% -37% 0.019 $4,335,005 VMC Venus Metals Cor Ltd 0% 4% -5% 27% 0.1 $18,972,868 RGL Riversgold 0% 13% -18% -57% 0.009 $8,708,953 ZNC Zenith Minerals Ltd 19% 1% -30% -59% 0.095 $28,190,471 RAS Ragusa Minerals Ltd 8% 13% -13% -74% 0.027 $3,564,970 G88 Golden Mile Res Ltd 0% -8% -15% -46% 0.011 $4,523,451 EPM Eclipse Metals 17% -13% -13% -65% 0.007 $12,450,325 EVR Ev Resources Ltd 8% 0% 40% -13% 0.014 $15,009,648 WC8 Wildcat Resources 3% 30% 80% 2572% 0.775 $896,878,592 MNS Magnis Energy Tech 0% 0% 0% -89% 0.042 $50,378,922 RIO Rio Tinto Limited -1% -1% -7% 3% 123.02 $46,353,768,642 THR Thor Energy PLC 0% -4% -24% -55% 0.025 $4,644,303 YAR Yari Minerals Ltd 20% 0% -40% -67% 0.006 $2,411,789 MXR Maximus Resources 0% 0% -11% -9% 0.031 $9,949,319 DRE Dreadnought Resources Ltd 3% -8% -3% -78% 0.0185 $62,668,313 MM1 Midasmineralsltd 0% -11% -20% -47% 0.08 $6,939,780 M2R Miramar 6% -10% -22% -71% 0.018 $2,530,782 LLI Loyal Lithium Ltd -10% 0% 24% -21% 0.28 $25,819,069 LRD Lordresourceslimited -6% -10% -20% -75% 0.047 $1,856,606 WMC Wiluna Mining Corp 0% 0% 0% 0% 0.205 $74,238,031 AUN Aurumin 8% 21% 37% -18% 0.041 $14,000,837 ZEO Zeotech Limited -6% 7% -3% -50% 0.029 $53,736,115 ALY Alchemy Resource Ltd 14% 0% 0% -50% 0.008 $8,246,534 LIS Lisenergylimited 0% -3% 3% -47% 0.15 $96,030,035 GW1 Greenwing Resources -1% 8% -17% -65% 0.078 $14,318,867 KTA Krakatoa Resources -11% -14% -40% -68% 0.012 $6,373,447 TYX Tyranna Res Ltd 4% -11% -17% -43% 0.0125 $39,449,104 DAF Discovery Alaska Ltd 0% -20% -20% -45% 0.016 $3,747,755 FTL Firetail Resources 12% 18% -2% -60% 0.058 $7,743,089 IR1 Irismetals 18% 21% 27% -38% 0.72 $79,016,339 LNR Lanthanein Resources 17% -30% -42% -81% 0.0035 $5,564,727 DAL Dalaroometalsltd 0% -5% -10% -76% 0.019 $1,572,250 TKM Trek Metals Ltd 0% -11% -8% -46% 0.034 $17,444,613 CY5 Cygnus Metals Ltd -3% 8% -6% -81% 0.065 $19,534,462 TUL Tulla Resources 0% -100% -100% -100% 0 $118,262,971 WES Wesfarmers Limited 0% 2% 14% 37% 66.09 $75,298,029,354 LLL Leolithiumlimited 0% 0% 0% -7% 0.505 $498,553,663 OCN Oceanalithiumlimited -5% 11% -2% -84% 0.061 $3,460,896 A11 Atlantic Lithium 6% 15% 15% -34% 0.43 $263,115,966 CMD Cassius Mining Ltd 10% -66% -68% -67% 0.011 $5,420,045 VSR Voltaic Strategic -5% -5% 25% 0% 0.02 $10,145,182 SGQ St George Min Ltd 0% 5% -16% -70% 0.021 $20,759,349 LLO Lion One Metals Ltd 0% 0% -31% -31% 0.62 $9,586,267 PAT Patriot Lithium -10% -26% -39% -79% 0.07 $5,430,136 PL3 Patagonia Lithium 0% -12% 20% 0% 0.15 $7,369,275 BUR Burleyminerals -3% -17% -36% -80% 0.058 $6,197,805 CHR Charger Metals 0% -8% 0% -61% 0.12 $9,290,430 RMX Red Mount Min Ltd 0% 0% -20% -56% 0.002 $5,347,152 DLI Delta Lithium -1% 17% 17% -13% 0.34 $245,577,776 LM1 Leeuwin Metals Ltd 0% -9% -20% 0% 0.08 $3,748,134 ENT Enterprise Metals 0% 0% -25% -63% 0.003 $2,405,913 FIN FIN Resources Ltd -6% 7% -12% 0% 0.015 $10,388,299 DTM Dart Mining NL 6% 31% 21% -59% 0.017 $3,641,274 NIS Nickelsearch 6% 0% -22% -61% 0.035 $7,046,901 EG1 Evergreenlithium 0% 0% -8% 0% 0.11 $6,185,300 MAN Mandrake Res Ltd -3% 5% 0% -15% 0.039 $24,630,397 FBM Future Battery 0% 7% 20% 3% 0.06 $32,025,359 LPM Lithium Plus -5% 17% 0% -30% 0.21 $18,917,404 KOB Kobaresourceslimited 0% -15% -33% -27% 0.11 $14,345,833 EMC Everest Metals Corp 0% 0% 5% -7% 0.08 $13,142,649 LRD Lordresourceslimited -6% -10% -20% -75% 0.047 $1,856,606 IEC Intra Energy Corp -20% -20% -20% -67% 0.002 $4,226,954 REC Rechargemetals 1% -5% 6% -42% 0.072 $7,905,990 SLM Solismineralsltd -7% 0% 8% -13% 0.13 $10,988,425 AZS Azure Minerals 1% 3% -1% 1120% 3.6 $1,637,486,083 DYM Dynamicmetalslimited 0% 0% 7% 0% 0.16 $5,760,000 TOR Torque Met -8% -6% -18% 10% 0.165 $27,549,634 SBR Sabre Resources -11% -15% -32% -37% 0.017 $7,110,977 ICL Iceni Gold -5% 16% -18% -60% 0.037 $9,615,881 TMX Terrain Minerals 13% -10% -10% -36% 0.0045 $5,726,683 MHC Manhattan Corp Ltd 0% 20% -25% -50% 0.003 $8,810,939 MHK Metalhawk. 0% 1% -19% -42% 0.072 $7,157,840 NKL Nickelxltd 0% -5% -29% -51% 0.035 $3,073,531 TMB Tambourahmetals 0% -3% 10% -16% 0.088 $7,298,751 ANX Anax Metals Ltd 5% 11% -9% -69% 0.021 $10,848,959 PMT Patriotbatterymetals -10% 19% 24% -45% 0.905 $562,317,170 BM8 Battery Age Minerals 0% -3% 7% -67% 0.16 $14,681,651 L1M Lightning Minerals -1% -3% -18% -56% 0.07 $2,997,980 ADG Adelong Gold Limited 0% -10% -10% -44% 0.0045 $3,148,450 TOR Torque Met -8% -6% -18% 10% 0.165 $27,549,634 AL8 Alderan Resource Ltd 0% -20% 14% -43% 0.004 $4,427,445 OZM Ozaurum Resources 1% 0% 4% 46% 0.073 $11,430,000 FL1 First Lithium Ltd 0% 6% -7% 42% 0.255 $17,863,175 PLN Pioneer Lithium 0% -3% -3% 0% 0.155 $4,405,875 WYX Western Yilgarn NL 0% -28% -28% -37% 0.063 $3,128,423 RDN Raiden Resources Ltd 4% 17% 17% 489% 0.028 $71,727,798 PFE Panteraminerals 22% 12% -5% -50% 0.055 $6,688,015 GRE Greentechmetals 0% 23% 20% 74% 0.27 $22,701,593 OLY Olympio Metals Ltd 0% 6% 50% -31% 0.09 $5,723,955 SUM Summitminerals 1% -4% -7% -49% 0.069 $3,240,685 JBY James Bay Minerals 0% 3% 0% 0% 0.18 $5,840,100 SCN Scorpion Minerals 20% 88% 20% -57% 0.03 $10,236,405 JNO Juno -7% -12% -21% -20% 0.067 $13,100,059 CC9 Chariot Corporation -2% 21% -17% 0% 0.315 $26,171,635 OBM Ora Banda Mining Ltd 0% 2% 14% 127% 0.25 $426,877,995 RON Roninresourcesltd -5% -9% -13% -32% 0.105 $4,050,751 ASR Asra Minerals Ltd 0% 0% 0% -43% 0.006 $9,918,974 PFE Panteraminerals 22% 12% -5% -50% 0.055 $6,688,015 TG6 Tgmetalslimited 2% -5% 11% 108% 0.26 $13,791,973 HAW Hawthorn Resources 0% -7% -21% -13% 0.077 $25,796,202 KM1 Kalimetalslimited -3% 13% -3% 0% 0.45 $35,499,074 AEV Avenira Limited 0% 0% -9% -29% 0.01 $21,925,716
For more on the latest regarding lithium and other critically important metals and minerals, read Josh Chiat’s excellent Up, Up, Down, Down. But here’s a snippet from the lithium section…
UPSIDE
SQM believes sale prices for lithium will remain stable for the next three months, predicting a pick up as lithium demand grows 20% this year.
Pilbara Minerals announced a second expanded offtake with Chinese customers last month as local producers report anecdotally say interest in securing long term spodumene supply is ramping up.
DOWNSIDE
European EV sales growth could slow with he roll off of subsidies in Germany.
The crunch on marginal producers may not yet be over, with Sayona Mining still to complete the review of its loss making North American Lithium mine in Quebec.
The post Eye on Lithium: Azure’s Hancock/SQM deal inches ahead. Meanwhile, what supply glut? appeared first on Stockhead.
