*To add, I see where,
Petra Capital increases share price targets for 6 advanced ASX lithium stocks
- Petra Capital is the latest to adjust its forecast lithium prices upwards
- This has a large impact on Petra’s ASX lithium stocks under coverage, with all of them expected to enjoy weighty share price gains
- Stocks under coverage include Anson, Sayona, Leo Lithium, Argosy, Essential, Core, and Galan
On Friday
lithium carbonate hit a record of around US$71,315, with some saying prices could stay that high for the rest of the year.
Petra Capital is the latest to adjust its forecast lithium prices upwards following this robust action on the spot market and “ongoing expectations of stronger demand”.
“… we have increased our long-term price for lithium carbonate to $US20,000/t (US$15,000/t previously) from FY28,” Petra says.
“For spodumene we have increased our long-term price to US$1,000.”
This has a large impact on Petra’s ASX lithium stocks under coverage, with all of them expected to enjoy weighty share price gains.
Who’s in the bull pen?
ARGOSY
The share price target for near-term producer AGY jumps 59% to 85c per share, Petra says.
“AGY is fully funded to production of 2ktpa of LCE with construction 95% complete and first production expected next quarter,” it says.
US-based project developer ASN jumps 165% from current levels to $1.02 per share, Petra says.
“The recent major de-risking events have seen ASN gather much more investor attention and are likely to draw attention from US-based investors and offtakers.”
The near-term Aussie producer is the only one on the list with a HOLD recommendation.
Petra believes it is fairly valued at $1.26 per share; a 12.5% discount to the current price.
“We have always seen a lot of like about CXO; Australian based (Darwin), near term production (this year), fully funded with strong leverage to higher prices, but it has remained fully valued in our view, even at our higher price forecast,” it says.
Petra’s ESS share price target rises 167% on current levels to $1.28 per share.
“ESS has all the attributes one would look for; good geology, close to infrastructure, in an excellent jurisdiction (WA), and a team that has built mines before,” it says.
“It has already been the target of M&A.”
With multiple catalysts on the horizon – JORC update, feasibility, permitting – brine play GLN has the highest upside, Petra says.
It has increased GLN’s price target from $2.42 to $3.75 per share – up 174% on current levels.
Petra has whacked a $1.85 per share price target on the African hard rock play – that’s a big 143% increase on current levels.
“Construction has started on a 500,000tpa mine with Ganfeng as offtaker,” it says.
LLL trades well below the median EV/Reserve (currently $2,158/t LCE) at $895/t LCE.
SYA also gets a BUY rating with a price target of 53c per share – a 100% increase on current levels.
“SYA is restarting an existing spodumene operation in Quebec and has approval for a downstream lithium carbonate plant site,” Petra says.
“It will also develop a second site at Moblan for lithium hydroxide to supply the crucial North American EV supply chain.”
Pilbara Minerals smashes yet another record at its latest spodumene auction
In the latest and ninth auction of spodumene concentrate on
Pilbara Minerals Battery Material Exchange platform, the company has pulled in an outrageous US$6988/t for 5000t of 5.5% Li20 concentrate.
For context, that’s a single shipment raking in more than $52 million Aussie dollars.
Adjusted for the 6% benchmark grade normally used by reporters of lithium spot prices, the pull is US$7708/dmt CIF China.
Compare that to the first auction over a year ago, which was one of the biggest price discovery events in the young history of the battery lithium market, and pulled in US$1250/t for a 5.5% Li2O cargo.
Pilbara Minerals pulls US$7708/t in lithium auction and this rocket is showing no signs of slowing down
By the law of things what goes up must come down, but we seem to be waiting a long time for that to happen when it comes to lithium prices after
Pilbara Minerals smashed another record with its latest spodumene auction.
The latest and ninth auction of spodumene concentrate on PLS’ Battery Material Exchange platform has pulled in an outrageous US$6988/t for 5000t of 5.5% Li20 concentrate.
That is a single shipment raking in more than $52 million Aussie, the sort of haul iron ore miners would dream of raking in on one cargo.
Adjusted for the 6% benchmark grade normally used by reporters of lithium spot prices, the pull is US$7708/dmt CIF China.
What the actual?
Need a reminder of how this story has developed since the Pilgangoora miner, which delivered a record $561.8m full year profit in FY22 has gone?
The first auction over a year ago, one of the biggest price discovery events in the young history of the battery lithium market, pulled in US$1250/t for a 5.5% Li2O cargo.
Check out the progress:
1st Auction,
2nd Auction,
3rd Auction,
4th Auction,
5th Auction,
6th Auction (bidding got so frenzied PLS accepted a bid before the sale had even taken place),
7th Auction,
8th Auction.
As our intrepid Dep Ed. Reubs said in our regular chat to simply gawk at the prices lithium converters are throwing on the table to feed the growing EV industry in China, “not even the most bullish of bulls would have predicted this a couple years ago”.
Pilbara Minerals was up 1% to a record $4.94 this morning, defying a tidal wave of negative sentiment engulfing the market, with ASX mining stocks down 2.27% with the broader ASX 200 facing a 1.43% sell off.
stockhead
*Meanwhile, back in the DRC
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