LITHIUM – PRICES

Lithium stocks one deal away from rocketing, says broker

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Original article by Alex Gluyas
The Australian Financial Review – Page: 25 : 16-Oct-24

Data from S&P Global Platts shows that the spot price of spodumene is currently trading at around $US760 per tonne. However, E&P Financial Group forecasts that the price of spodumene will rise to $US850/tonne in the second quarter of fiscal 2025, and $US1,000/tonne in the third quarter. E&P analyst Adam Martin is also upbeat about the outlook for Australian-listed lithium stocks in the wake of Rio Tinto’s $9.9bn deal to acquire Arcadium Lithium.

CORPORATES
S&P GLOBAL PLATTS, E&P FINANCIAL GROUP LIMITED – ASX EP1, RIO TINTO LIMITED – ASX RIO, ARCADIUM LITHIUM PLC – ASX LTM

Australia’s only profitable lithium mine

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Original article by Elouise Fowler
The Australian Financial Review – Page: 15 & 20 : 4-Sep-24

Australia currently has seven lithium mines in the production stage, but Citigroup’s brokers estimate that the Greenbushes mine is the only one that is profitable at present. This is based on the running costs of each mine at the current spot price. Data from S&P Global Platts shows that the spot price of spodumene concentrate with six per cent lithium content has fallen by 23 per cent over the last 45 day, and was trading at $US720 per tonne on 2 September; this compares with more than $US8,000 per tonne in 2022.

CORPORATES
CITIGROUP PTY LTD, S&P GLOBAL PLATTS

Lithium prices have crashed this year, squeezing margins at Australian miners

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Original article by Clint Jasper
abc.net.au – Page: Online : 3-Sep-24

The lithium price peaked in 2022, but the battery mineral has fallen by about 50 per cent in the last 12 months. Demand for lithium remains strong, amid a growing consumer shift to electric vehicles and the push to decarbonise economies by transitioning to renewables such as wind and solar; however, this is being offset by rising global supply, which is expected to increase in coming years as more lithium mines commence production. Core Lithium put its Finnis mine into ‘care and maintenance’ mode earlier in 2024, while Mineral Resources is reducing its lithium output. In contrast, Pilbara Minerals aims to increase lithium production by 50 per cent over the next year: MD Dale Henderson says the long-term outlook for lithium is "fantastic".

CORPORATES
CORE LITHIUM LIMITED – ASX CXO, MINERAL RESOURCES LIMITED – ASX MIN, PILBARA MINERALS LIMITED – ASX PLS

Lithium mine closures tip of iceberg as prices hit three-year low

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Original article by Alex Gluyas
The Australian Financial Review – Page: 29 : 27-Aug-24

Core Lithium, Albemarle and Arcadium Lithium are amongst the companies that have put projects on hold or scaled them back in response to the downturn in the price of the battery metal. The price of spodumene concentrate has fallen by 19 per cent so far in 2024, while carbonate prices in China are down 25 per cent. UBS analyst Lachlan Shaw says Core Lithium’s decision to place its Finniss project in ‘care and maintenance’ mode could be followed by similar action by rival producers if the spodumene price remains at the current level for some time. UBS has downgraded its share price targets for Pilbara Minerals and Mineral Resources; it also has a ‘sell’ recommendation on both stocks.

CORPORATES
CORE LITHIUM LIMITED – ASX CXO, ALBEMARLE CORPORATION, ARCADIUM LITHIUM PLC – ASX LTM, UBS HOLDINGS PTY LTD, PILBARA MINERALS LIMITED – ASX PLS, MINERAL RESOURCES LIMITED – ASX MIN

Lithium’s sharp decline to weigh on Australian exports

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Original article by Simone Grogan
The West Australian – Page: Online : 2-Jul-24

The federal Department of Industry, Science & Resources expects the total value of Australia’s lithium exports to have been just $10bn in the year to 30 June. This compares with $20bn in the 2022-23 financial year, with the latest result being affected by a sharp fall in the price of the battery metal. However, the department’s quarterly report concludes that the price of both lithium and copper may have bottomed. It also says the outcome of the US presidential election could potentially accelerate that nation’s transition to renewables and electric vehicles, which in turn could boost demand for Australia’s critical minerals.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE AND RESOURCES

More pain for nickel, lithium as deluge bites

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Original article by Cecile Lefort
The Australian Financial Review – Page: 27 : 28-Feb-24

The price of nickel fell by 44 per cent in 2023, and Sam Berridge of Perennial Value Management believes that it may not rebound for some time. He notes that Indonesia is continuing to ramp up its production of low-cost nickel, while the growing use of lithium ferrous phosphate in battery technology will reduce demand for the use of nickel in electric vehicles. Meanwhile, Vivek Dhar from the Commonwealth Bank says economic activity in China will be the key driver of the outlook for nickel, given that the nation accounts for 40-60 per cent of base metal demand. However, Berridge thinks the lithium price may have bottomed, after falling by 85 per cent in 2023.

CORPORATES
PERENNIAL VALUE MANAGEMENT LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Miners call for critical minerals aid

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Original article by Peter Ker, Brad Thompson
The Australian Financial Review – Page: 1 & 15 : 23-Jan-24

Shares in Liontown Resources fell almost 22 per cent on Monday after its lending syndicate announced it would withdraw a $760 million it had offered as recently as October. It was prompted by a forecast by commodities’ agency Wood Mackenzie that the price of lithium would remain at around $US950 a tonne until 2028, with Liontown seeking to develop the Kathleen Valley lithium project in Western Australia. Liontown MD Tony Ottaviano says $US950 a tonne is "a very, very low price", while federal Resources Minister Catherine King and WA Mines Minister David Michael are to hold crisis talks with nickel and lithium producers.

CORPORATES
LIONTOWN RESOURCES LIMITED – ASX LTR, WOOD MACKENZIE, AUSTRALIA. DEPT OF INDUSTRY, SCIENCE AND RESOURCES, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY

Pilbara Minerals achieves another record lithium price at auction

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Original article by Stuart McKinnon
The West Australian – Page: Online : 26-May-22

Pilbara Minerals has advised that a 5,000-tonne cargo of its lithium concentrate has fetched $US5,955 per tonne in auction. The company says this equates to $US6,586 on a cost, insurance, freight price basis. Kaan Peker of RBC Capital Markets says the sale price is 35 per cent above the current spot price in China, and six per cent above the reported weekly Platts index price. The price of lithium has almost doubled since the start of 2022, and Pilbara Minerals MD Ken Brinsden recently forecast that the price will continue to rise.

CORPORATES
PILBARA MINERALS LIMITED – ASX PLS, RBC CAPITAL MARKETS, PLATTS

Pilbara Minerals sets new record for spot lithium cargo

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Original article by Stuart McKinnon
The West Australian – Page: Online : 28-Oct-21

Pilbara Minerals has held its third auction of lithium concentrate since launching its Battery Material Exchange earlier in 2021. Pilbara Minerals has advised that it received a record bid of $US2,350 per tonne for a 10,000 tonne cargo of 5.5 per cent lithium concentrate in its latest auction via the digital platform. The price of lithium has more than doubled in the last year, amid rising demand for the battery mineral.

CORPORATES
PILBARA MINERALS LIMITED – ASX PLS

The lithium party’s still young

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Original article by Alex Gluyas
The Australian Financial Review – Page: 24 : 14-Jul-21

Matthew Hope of Credit Suisse forecasts that the strong rise in the price of lithium since February will be sustained. He says the lithium supply glut has ended, and the world faces a growing supply deficit as current and proposed lithium projects will be insufficient to meet demand. Rising demand for lithium has also boosted the share prices of Australian-listed producers; Pilbara Minerals’ shares gained 522.6 per cent in 2020-21, which was the second-best return among S&P/ASX 200 stocks.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, PILBARA MINERALS LIMITED – ASX PLS