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Lithium continues to smash pricing records in 2022, with desperate buyers scrambling for units on the thinly traded spot market amid low supply.
Despite the current high prices for battery-grade lithium carbonate, market participants are still bullish, according to price reporting agency Fastmarkets.
“[Industry] expect prices to rise even further in the first quarter of 2022 amid tight supply and firm demand,” it says.
On the supply side, there looks to be little respite in the near and mid-term.
Hardrock major Pilbara Minerals (ASX:PLS) recently announced production cuts amid commissioning delays and shortages of skilled personnel in WA, while several near term miners around the world are grappling with ESG disputes.
The most prominent of these is Rio Tinto, which was reportedly forced to suspend developments at the monster Jadar mine in Serbia amid community protests.
Beyond that, the cluster of advanced lithium stocks nearing production – all of which have bagged multiple times over the last year — probably won’t produce enough to satisfy ever-increasing demand from the EV sector.
So, where’s the rest the of lithium coming from?
These microcap stocks ⬇️ are probably keen to throw their collective hat in the ring.
And if they don’t have such lofty aspirations, there’s still a lot of value to be gained by picking up a lithium project or three in the current environment — regardless of prospectivity.
Which lithium stocks have room to run?
Everyone loves a bargain. Here is a selection of the cheapest lithium-facing stocks on the ASX.
Scroll or swipe to reveal table. Click headings to sort.
|CODE||COMPANY||%Wk||%Mth||SHARE PRICE||MARKET CAP|
|RAG||Ragnar Metals||30.3%||22.9%||0.043||$ 15,652,765.34|
|WCN||White Cliff Minerals||6.3%||6.3%||0.017||$ 14,829,909.98|
|BMM||Balkan Mining and Minerals||-15.3%||0.0%||0.415||$ 13,263,750.00|
|LSR||Lodestar Minerals||0.0%||12.5%||0.009||$ 13,213,904.81|
|BYH||Bryah Resources||9.3%||0.0%||0.053||$ 11,988,980.28|
|TMB||Tambourah Metals||4.0%||15.6%||0.26||$ 10,916,038.47|
|TSC||Twenty Seven Co.||-20.0%||0.0%||0.004||$ 10,643,255.62|
|SHH||Shree Minerals||5.3%||0.0%||0.01||$ 10,632,368.92|
|WML||Woomera Mining||3.0%||6.3%||0.017||$ 10,520,179.60|
|MLS||Metals Australia||25.0%||150.0%||0.0025||$ 10,477,114.72|
|IMI||Infinity Mining||2.8%||0.0%||0.185||$ 10,350,000.00|
|DTM||Dart Mining||6.0%||8.5%||0.089||$ 10,332,747.19|
|AAJ||Aruma Resources||13.9%||20.6%||0.082||$ 10,328,843.25|
|FG1||Flynn Gold||-5.9%||-8.6%||0.16||$ 10,149,768.00|
|TEM||Tempest Minerals||13.0%||4.0%||0.026||$ 9,947,522.45|
|FRS||Forrestania Resources||37.5%||22.2%||0.385||$ 9,677,250.00|
|AX8||Accelerate Resources||-2.6%||-2.6%||0.037||$ 9,377,979.26|
|AM7||Arcadia Minerals||23.8%||18.2%||0.26||$ 8,550,000.00|
|EMS||Eastern Metals||16.2%||11.7%||0.215||$ 8,188,000.00|
|GSM||Golden State Mining||0.0%||-1.2%||0.083||$ 6,896,302.76|
|AS2||Askari Metals||-4.3%||15.8%||0.22||$ 6,754,319.88|
|LRV||Larvotto Resources||48.0%||27.6%||0.185||$ 5,972,100.00|
|MMC||Mitre Mining||2.6%||-2.5%||0.195||$ 5,281,594.50|
Bargain Barrel Standouts
In November, RAG inked a non-binding deal to buy WestOz Lithium, which has four tenements in the Pilbara and one in the Gascoyne.
“WestOz has applied for a significant land area in a premium location, in close proximity to established lithium operations such as Wodgina and Pilgangoora,” RAG chairman Steve Formica says.
RAG is conducting a review of historical geological information and other project information during the due diligence period, which was extended until January 31.
Gold and critical minerals focused WCN has hit the ground running at its newly acquired, early-stage lithium and rare earths projects in WA.
The company says it now holds over 4,000sqkm of lithium and REE tenure “within proven jurisdictions and nearby to operating mines and/or recent discoveries”.
At the Yinnetharra project, exploration historically focused on uranium, but sampling by Geological Survey of Western Australia (GSWA) showed the potential for lithium and REEs.
The Preston River lithium project is 30km from the world-class Greenbushes lithium project and “situated in similar geological terrane”, WCN says.
The lithium explorer is well down on its crazy September peak of 93c per share but remains comfortably above its July 2021 IPO price of 20c.
BMM, recently spun out of EV Resources (ASX:EVR), is focused on the ‘Rekovac’ lithium project in the little-known jurisdiction of Serbia.
The project “has similar geological settings” to Rio Tinto’s Jadar discovery, the company says.
Following a small drilling campaign — which hit lithium mineralisation in two holes – surface mapping was conducted over the whole project area to dial in on some drill targets.
This busy WA junior is juggling several balls right now.
Two of these are lithium related – the wholly owned ‘Coolgardie West’ project, and the ‘Nepean’ joint venture with Auroch Minerals (ASX:AOU).
In October, LSR kicked off a sampling program for gold, nickel, and lithium at the greenfields Coolgardie West project, where there is no record of historic exploration for lithium despite evidence of pegmatites on the south of the tenement.
In December, JV partner Auroch announced grades up to 1.05% lithium from a rock sampling program at the Nepean project (20% LSR).
Follow up mapping and sampling is planned to better understand the distribution of the pegmatite and LCT-mineralised zones.
In November, BYH acquired the 690sqkm ‘Lake Johnson’ lithium-nickel project, 10km from the Mount Holland Lithium Mine (ASX:WES/SQM JV).
Mt Holland includes the Earl Grey deposit, which has a reported resource of 189 million tonnes grading 1.5% lithium. World class.
“Recent exploration work for lithium and nickel on our Lake Johnston tenements has been limited, however the region has huge potential for new discoveries using modern exploration techniques,” BYH managing director Neil Marston says.
“We will kick off exploration and desktop studies within weeks and look forward to getting our team on the ground in 2022.”
In September, this recent listing applied for tenure over the ‘Russian jack’ tin-tantalum-lithium project in the Pilbara. It has subsequently expanded the project to 510sqkm via two new tenement applications.
There has been no previous drilling within the project, despite pegmatite swarms being identified 2km to the northeast of the lease boundary.
TMB is compiling historic data and reprocessing existing geophysics and hyperspectral data to target prospective pegmatites, it said late November.
In October, SHH identified lithium potential at the ‘Dundas’ project, interpreted to be along strike from Liontown’s (ASX:LTR) 14.8Mt ‘Anna’ resource.
The WA project had been initially targeted for gold, which meant historic drilling which intersected pegmatites was not assayed for lithium.
Auger soil sampling and RAB drilling planned at Dundas will test both the gold potential of the greenstone belts and the lithium potential of the pegmatites, SHH says.
This perpetual minnow recently picked up rock grading up to 1.25% lithium at Foundation, part of the ‘Manindi’ project in WA.
These early-stage results “confirm that Foundation is a major new LCT pegmatite discovery”, it boldly said.
Rockchip sampling at the Mulgara prospect also confirmed previous sampling and drilling results that included 15m @ 1.2% lithium from 34m. That’s pretty good.
Drilling is now planned at Foundation and to follow up these previous, high-grade, intersections at Mulgara.