Saturday, 4 March 2023

Eye on Lithium: Chinese lithium chemical prices slip and slide but SQM’s profit more than triples

by Berkeley Lovelace

  • Chinese lithium chemical prices fall amid destocking by traders and cathode manufacturers 
  • SQM posted a quarterly profit of US$1.15bn for the 12 months ending December 31, 2022
  • Astro accelerates lithium strategy with the appointment of industry veterans to the board

All your lithium news, Friday March 3.

 

Chinese lithium chemical prices have continued to fall amid ongoing inventory destocking by traders and cathode manufacturers, but it wasn’t enough to break the stride of the world’s second largest lithium miner who posted a fourth quarter net profit more than triple that of a year earlier.

On Wednesday, Sociedad Quimica y Minera de Chile (SQM) posted a quarterly profit of US$1.15bn for the 12 months ending December 31, 2022 while revenue also nearly tripled to US3.13bn.

“Our long-term view of the lithium view of the lithium market, the investments we made in new capacity, the risk we took and the operational success, all of that positioned us to benefit from the market conditions seen last year,” SQM CEO Ricardo Ramos explained.

 

According to Benchmark Mineral Intelligence’s (BMI) Lithium Price Index, technical grade pricing from February 22 – March 1 fell the most sharply by 7.5% as traders looked to sell off material over fears of further price decreases.

“Contacts reported that more technical grade material was entering the market from the Qinghai brine projects, which are ramping up following the winter off-season,” the price reporting agency said.

BMI added the crackdown on illegal mining activities in Jiangxi Province towards the end of February had no effect on pricing.

“Mining operation shutdowns were short-lived, with major players continuing to process and convert lithium ore from their inventories throughout the inspections, preventing any supply-side impact.”

Over in the UK, Australian battery manufacturing start-up, Recharge Industries, officially announced the acquisition of collapsed firm British Volt which struggled to fund a major electric vehicle battery factory in northern England.

Recharge is currently developing Australia’s first large-scale lithium-ion cell production facility in Geelong and said it was confident it could turn the Britishvolt project into a growing success.

 

Here’s how ASX lithium stocks are tracking:

CODE COMPANY PRICE % TODAY MARKET CAP
RLC Reedy Lagoon Corp. 0.009 13% 4,533,757
DTM Dart Mining NL 0.047 12% 6,536,064
EMS Eastern Metals 0.068 11% 2,382,929
LTR Liontown Resources 1.6 11% 3,165,774,672
AUN Aurumin 0.05 11% 8,020,844
XTC Xantippe Res Ltd 0.0055 10% 52,900,498
GW1 Greenwing Resources 0.245 9% 33,358,245
LLO Lion One Metals Ltd 0.975 8% 10,611,417
NWM Norwest Minerals 0.033 6% 6,885,329
RAG Ragnar Metals Ltd 0.017 6% 6,066,958
EMC Everest Metals Corp 0.086 6% 8,621,082
KAI Kairos Minerals Ltd 0.02 5% 37,317,776
ASN Anson Resources Ltd 0.205 5% 229,971,287
INF Infinity Lithium 0.11 5% 48,572,170
BYH Bryah Resources Ltd 0.022 5% 5,906,323
TKM Trek Metals Ltd 0.068 5% 23,656,430
INR Ioneer Ltd 0.3625 4% 734,418,393
QPM Queensland Pacific 0.099 3% 167,649,401
STM Sunstone Metals Ltd 0.033 3% 83,854,285
TON Triton Min Ltd 0.034 3% 45,631,878
CHR Charger Metals 0.34 3% 14,425,741
SGQ St George Min Ltd 0.07 3% 56,942,217
LLI Loyal Lithium Ltd 0.355 3% 20,524,050
NVA Nova Minerals Ltd 0.54 3% 110,717,132
LLL Leolithiumlimited 0.54 3% 517,994,879
LNR Lanthanein Resources 0.0185 3% 20,188,360
PLS Pilbara Min Ltd 4.19 3% 12,231,873,599
RDT Red Dirt Metals Ltd 0.39 3% 169,064,846
A11 Atlantic Lithium 0.67 2% 396,760,787
CXO Core Lithium 0.965 2% 1,752,990,870
AKE Allkem Limited 12.32 2% 7,715,662,841
RIO Rio Tinto Limited 126.64 2% 46,194,145,670
LEL Lithenergy 0.745 1% 44,210,250
GSM Golden State Mining 0.038 1% 4,388,033
LIT Lithium Australia 0.0395 1% 47,626,475
AZL Arizona Lithium Ltd 0.0605 1% 146,550,278
WES Wesfarmers Limited 48.07 1% 54,204,838,106
GLN Galan Lithium Ltd 1.155 0% 352,952,716
LKE Lake Resources 0.6075 0% 859,066,545
ADV Ardiden Ltd 0.007 0% 18,818,347
1MC Morella Corporation 0.012 0% 73,182,965
AML Aeon Metals Ltd. 0.024 0% 26,313,615
AVZ AVZ Minerals Ltd 0.78 0% 2,752,409,203
MLS Metals Australia 0.047 0% 28,530,701
PSC Prospect Res Ltd 0.21 0% 97,074,487
SYA Sayona Mining Ltd 0.235 0% 2,043,375,359
TKL Traka Resources 0.006 0% 4,336,647
BMM Balkanminingandmin 0.345 0% 15,446,345
ARN Aldoro Resources 0.22 0% 24,840,710
AAJ Aruma Resources Ltd 0.063 0% 9,888,575
PAM Pan Asia Metals 0.37 0% 54,336,568
AX8 Accelerate Resources 0.028 0% 10,572,849
IMI Infinitymining 0.17 0% 13,001,314
LRV Larvottoresources 0.17 0% 11,433,303
MMC Mitremining 0.3 0% 10,795,530
CTN Catalina Resources 0.007 0% 8,669,408
TMB Tambourahmetals 0.1 0% 4,119,260
TEM Tempest Minerals 0.022 0% 11,143,063
WCN White Cliff Min Ltd 0.011 0% 8,624,599
WML Woomera Mining Ltd 0.012 0% 11,473,935
LRS Latin Resources Ltd 0.115 0% 253,190,316
QXR Qx Resources Limited 0.038 0% 34,080,768
AZI Altamin Limited 0.072 0% 28,203,606
ENT Enterprise Metals 0.008 0% 5,640,646
AVW Avira Resources Ltd 0.0025 0% 5,334,475
BNR Bulletin Res Ltd 0.1 0% 29,359,110
MRR Minrex Resources Ltd 0.03 0% 32,546,025
A8G Australasian Metals 0.165 0% 6,793,132
EFE Eastern Resources 0.016 0% 19,871,143
MQR Marquee Resource Ltd 0.029 0% 9,489,018
LSR Lodestar Minerals 0.0045 0% 7,822,968
AOA Ausmon Resorces 0.005 0% 4,846,447
VKA Viking Mines Ltd 0.011 0% 11,277,843
IPT Impact Minerals 0.009 0% 22,332,335
SRI Sipa Resources Ltd 0.027 0% 6,160,270
G88 Golden Mile Res Ltd 0.017 0% 3,478,026
WC8 Wildcat Resources 0.029 0% 19,198,659
THR Thor Energy PLC 0.005 0% 7,378,064
CZL Cons Zinc Ltd 0.02 0% 9,647,156
MXR Maximus Resources 0.034 0% 10,847,896
MM1 Midasmineralsltd 0.15 0% 8,569,765
M2R Miramar 0.062 0% 4,382,268
WMC Wiluna Mining Corp 0.205 0% 74,238,031
ALY Alchemy Resource Ltd 0.016 0% 18,849,220
LIS Lisenergylimited 0.28 0% 46,455,972
KTA Krakatoa Resources 0.039 0% 13,443,687
DAF Discovery Alaska Ltd 0.029 0% 6,502,806
FTL Firetail Resources 0.145 0% 9,425,000
IR1 Irismetals 1.16 0% 74,506,800
DAL Dalaroometalsltd 0.0745 0% 2,225,688
TUL Tulla Resources 0.24 0% 51,083,628
OCN Oceanalithiumlimited 0.37 0% 13,473,180
CMD Cassius Mining Ltd 0.033 0% 13,480,266
VSR Voltaic Strategic 0.02 0% 6,146,004
PAT Patriot Lithium 0.33 0% 20,010,376
MIN Mineral Resources. 90.01 0% 17,298,805,077
IGO IGO Limited 13.9 0% 10,541,167,957
JRL Jindalee Resources 2.6 0% 149,759,101
AGY Argosy Minerals Ltd 0.735 -1% 1,039,261,549
MNS Magnis Energy Tech 0.3575 -1% 349,319,334
AS2 Askarimetalslimited 0.525 -1% 26,233,690
ESS Essential Metals Ltd 0.495 -1% 133,783,347
CAI Calidus Resources 0.2225 -1% 98,898,939
EUR European Lithium Ltd 0.067 -1% 98,548,264
GL1 Globallith 1.605 -2% 348,538,274
VUL Vulcan Energy 6.05 -2% 886,430,160
AM7 Arcadia Minerals 0.225 -2% 10,740,515
RAS Ragusa Minerals Ltd 0.1025 -2% 14,972,873
EMH European Metals Hldg 0.605 -2% 78,118,395
DRE Dreadnought Resources Ltd 0.079 -2% 266,791,986
LRD Lordresourceslimited 0.195 -3% 6,658,424
PGD Peregrine Gold 0.45 -3% 17,932,924
NMT Neometals Ltd 0.8025 -3% 456,011,470
SCN Scorpion Minerals 0.068 -3% 24,199,433
CY5 Cygnus Metals Ltd 0.34 -3% 64,355,974
KZR Kalamazoo Resources 0.16 -3% 24,555,197
AOU Auroch Minerals Ltd 0.057 -3% 25,242,863
LPI Lithium Pwr Int Ltd 0.3525 -3% 229,620,609
LPD Lepidico Ltd 0.014 -3% 110,747,690
GT1 Greentechnology 0.68 -4% 134,470,567
CRR Critical Resources 0.047 -4% 78,142,989
PLL Piedmont Lithium Inc 0.925 -4% 417,631,735
ZNC Zenith Minerals Ltd 0.22 -4% 80,892,390
TYX Tyranna Res Ltd 0.021 -5% 52,919,357
RGL Riversgold 0.02 -5% 19,854,822
KGD Kula Gold Limited 0.019 -5% 7,224,238
EPM Eclipse Metals 0.019 -5% 40,561,196
VMC Venus Metals Cor Ltd 0.16 -6% 30,273,376
WR1 Winsome Resources 2.14 -6% 367,037,859
EVR Ev Resources Ltd 0.015 -6% 14,975,745
PNN Power Minerals Ltd 0.41 -7% 31,788,171
MTM Mtmongerresources 0.12 -8% 7,413,149
ZEO Zeotech Limited 0.06 -8% 106,645,869
SRZ Stellar Resources 0.011 -8% 12,055,571
RMX Red Mount Min Ltd 0.0045 -10% 11,359,255
FRS Forrestaniaresources 0.12 -11% 8,220,326
FG1 Flynngold 0.07 -13% 8,229,883

A total of 37 stocks finished in the green, 61 fell flat, and another 39 tumbled into the red zone.

 

Who’s got news out?

ASTRO RESOURCES (ASX:ARO)

Astro has stacked the board with ex-Pilbara Minerals alumni and expanded its landholding in Nevada.

Tony Leibowitz, the founding chairman of ASX-50 lithium producer Pilbara Minerals, has been appointed to executive chairman in a role which will see him “take a hands-on approach”.

Meanwhile, geologist John Young has been appointed to non-executive director. Young held a number of key roles at Pilbara Minerals between 2014-2018.

“John is a talented and highly experienced geologist who, together with Neil Biddle, helped implement the exploration strategy which saw the rapid growth of the Pilgangoora lithium-tantalum project to become one of the world’s foremost hard rock lithium projects,” Leibowitz said.

The company also nabbed two new early stage projects named Polaris and Altair, both located on the southern extent of the Montezuma Valley, following a systematic review of regional open file data, such as mapped geology, topography, stream sediment geochemistry, land administration and an assessment of suitable claim-free areas.


The post Eye on Lithium: Chinese lithium chemical prices slip and slide but SQM’s profit more than triples appeared first on Stockhead.

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