Avalon Advanced Materials (TSX:AVL)) targets multiple critical minerals necessary for manufacturing clean technology. With over 25 years of experience working in the critical minerals sector, the company has first-to-market advantage, in addition to the years of expertise in the field.
The Separation Rapids Lithium Project, the company’s current flagship project, is in the preliminary stages of economic assessment and feasibility study. The project is in advanced exploration stages, but new studies are required per its new agreement with Essar Group to fund and build a new lithium refinery. However, an accurate economic assessment can now be completed since Avalon Advanced Materials has a specific refinery agreement.
Company Highlights
Avalon Advanced Materials is a Canadian-based mineral exploration and development company with assets targeting multiple critical minerals, including lithium and tin.
The company’s entire portfolio consists of assets located in stable jurisdictions throughout Canada.
The company’s flagship project, Separation Rapids, is poised to supply Ontario’s first lithium refinery and create a domestic supply chain for the critical mineral. It strategically aligns with the Ontario Critical Minerals strategy, leading sustainability solutions with its unique lithium petalite deposit in Northwestern Ontario.
Don Bubar, president and CEO, had the foresight to acquire assets covering multiple critical minerals. As a result, while the race to carbon neutrality heats up, the company is ready to supply the essential minerals that manufacturers need.
Avalon Advanced Materials is a Canadian enterprise that has been in business for over 25 years, specializing in the critical minerals sector.
Commodities markets are radically transforming as the world embraces electric vehicles (EVs) and other clean energy technologies. The surge in demand for green tech makes critical mineral commodity markets an attractive option for many investors. Moreover, most critical minerals necessary for future technologies have a steadily increasing demand while supply struggles to keep up, such as the tightening lithium supply in China. As a result, some analysts expect battery metals markets to remain elevated for decades. For example, the first quarter of 2022 saw lithium prices steadily increase as demand rose.
Lithium is undoubtedly a frontrunner in the critical battery materials market, but it’s not the only element necessary for the clean technology of the future. Research organization, International Energy Association (IEA) conducted a study highlighting other metals the world needs, including copper, platinum group metals, zinc, and aluminum. Another study by IEA indicates that total mineral demand for clean technology related to EVs and battery storage will go from 0.4 million tonnes in 2020 to 21.5 million tonnes in 2040, based on the ‘net-zero by 2050’ scenario. So how will the mining industry supply this massive increase in demand?
Avalon Advanced Materials (TSX:AVL) is a Canadian mineral exploration and development company targeting multiple critical minerals necessary for manufacturing clean technology. With over 25 years of experience working in the critical minerals sector, the company has first-to-market advantage, in addition to the years of expertise in the field. This is highlighted by the company’s project portfolio, containing assets known for lithium, tin, indium, rare earths, cesium, tantalum and other rare elements. The company has two key projects and three additional projects in their pipeline. Every asset is located in stable and mining-friendly jurisdictions throughout Canada.
The Separation Rapids Lithium Project, the company’s current flagship project, is in the preliminary stages of economic assessment and feasibility study. The project is in advanced exploration stages, but new studies are required per its new agreement with Essar Group to fund and build a new lithium refinery. However, an accurate economic assessment can now be completed since Avalon Advanced Materials has a specific refinery agreement.
Once in production, the new facility will be the first lithium refinery in Ontario. It strategically aligns with the Ontario Critical Minerals strategy, making the area more than mining-friendly, but actively supportive of the endeavour. Its leading sustainability solutions and unique lithium petalite deposit in Northwestern Ontario can serve both the global glass-ceramics industry and the electrification sector. The ability to process this chemical in Canada provides significant opportunities for the domestic supply chain.
The Separation Rapids lithium deposit
Even though we usually think of batteries when discussing lithium, it’s not the only usage for the element. High-purity lithium is also a required component for glass-ceramic applications. Lithium minerals within the Separation Rapids Project deposits contain the high purities necessary for glass-ceramic products.
President and CEO, Don Bubar, has understood the importance of a diversified asset portfolio for over a decade. Yet, he remains pleasantly surprised by the demand for every mineral they have been targeting for many years. Bubar states, “I figured some time ago, it made sense to keep us diversified and be in a position to react quickly if there’s sudden new demand for one of these critical minerals. It was a strategy we've had for the last ten years — but I never anticipated they'd all be in demand at the same time. We're now starting to take advantage of the best opportunity — our lithium project.”
Avalon Advanced Materials’ other projects target assets ranging from tin to rare earth oxides. The 100 percent owned East Kemptville Tin Project is actively being explored and contains tin and indium as well as copper, zinc and lithium. The project is undergoing a preliminary economic assessment to guide its development. The company also has three pipeline projects that will receive additional attention in the future.
An experienced and knowledgeable management team leads the company. Bubar, CEO and professional geologist, has worked in the mining industry since 1977 and has led Avalon Advanced Materials since 1995. Jim Andersen, CFO, brings 30 years of experience in corporate finance to guide the company’s development. Andersen is joined by Cindy Hu, chartered professional accountant and controller, who has experience in wealth management for both public and private companies. The technical team Includes Zeeshan Syed, VP, External Affairs with resource experience in Alberta and previous experience in government. He is joined by senior metallurgist Georgi Doundarov who has over 30 years of extensive managerial, operations, technical experience worldwide, and manager of ESG and sustainability Amiel Blajchman who has over 19 years’ experience in environmental and social impact assessment and community engagement.
Company Highlights
Avalon Advanced Materials is a Canadian-based mineral exploration and development company with assets targeting multiple critical minerals, including lithium and tin.
The company’s entire portfolio consists of assets located in stable jurisdictions throughout Canada.
The company’s flagship project, Separation Rapids, is poised to supply Ontario’s first lithium refinery and create a domestic supply chain for the critical mineral. It strategically aligns with the Ontario Critical Minerals strategy, leading sustainability solutions with its unique lithium petalite deposit in Northwestern Ontario.
Don Bubar, president and CEO, had the foresight to acquire assets covering multiple critical minerals. As a result, while the race to carbon neutrality heats up, the company is ready to supply the essential minerals that manufacturers need.
Avalon Advanced Materials is a Canadian enterprise that has been in business for over 25 years, specializing in the critical minerals sector.
Key Projects
Separation Rapids Lithium Project
The high-grade lithium project has the potential to supply two distinct lithium markets: glass-ceramics and energy storage. The project covers 9,172 acres and is 100 percent owned by Avalon Advanced Materials. The company is currently conducting a feasibility study and exploring the property for additional lithium pegmatite resources.
Based on this resource, Avalon Advanced Materials is developing Ontario’s first lithium refinery. Its production strategically aligns with the Ontario Critical Minerals strategy that supports green solutions and local economic opportunities. Once in production, this facility can help develop a secure, domestic supply for this critical mineral.
Avalon Advanced Materials is leading sustainability solutions through its lithium petalite deposit in Northwestern Ontario. It has the capacity of serving both the global glass-ceramics industry and the electrification sector. The ability to process this mineral to make several products provides opportunities for multiple revenue streams.
Project Highlights:
Robust Infrastructure: The project has road access and is close to clean hydro-power, allowing for lithium production with little waste and environmental impacts.
Significant Exploration Completed: Avalon Advanced Materials acquired the property in 1996 and has expended over C$15 million on exploration and development. Exploration includes 69 exploration drill holes and additional work focused on tantalum potential.
Good Resource Estimates: As of 2017, the project is indicated to contain at least 10 million tonnes of ore with 1.37 percent lithium and 0.3 percent rubidium oxide. This data is based on 72 drill holes drilled between 1997 and 2017.
East Kemptville Tin Project
Located in Nova Scotia, the 100 percent owned East Kemptville Tin Project covers 10,000 acres of promising tin and indium deposits. Tin is required in multiple emerging technologies and is considered the most impacted by them, as it is required in renewable energies, robotics, and EVs.
Project Highlights:
Redeveloping Previously-Mined Oxides: In addition to traditional exploration and development, the project also includes re-developing the historical 5.87 million tonne ore stockpile that were deemed economically impractical at the time. With current prices, it is believed that it is now feasible to process this ore to recover tin concentrates using new sensor based ore-sorting technology.
Substantial Resource Estimates: A 2018 resource estimate revealed an indicated 22.97 million tonnes of tin ore with a cutoff grade of 0.10 percent. The cutoff grade was determined based on past mining activity in the project. There are also approximately 20 million tonnes of wastes that can now be re-processed to recover tin, copper, zinc, indium, lithium and potentially gallium and germanium.
Economic Feasibility in Progress: The previous economic analysis was promising, but it’s believed that there are multiple opportunities for improvement, such as advanced ore sorting technology. The company is currently awaiting a new economic feasibility study along with securing full surface rights to develop a sorting plant.
Pipeline Projects
The projects above are receiving most of the company’s focused attention, but it also holds three other assets for future exploration and development.
Highlights for Upcoming Projects:
Nechalacho: Located in the Northwest Territories, the polymetallic asset is believed to contain rare earth elements, lithium, and tantalum. The property covers 14,228 acres.
Lilypad Cesium-Tantalum: The project is 100 percent owned by Avalon Advanced Materials and contains cesium, tantalum, and lithium. Historical exploration indicates the presence of relatively high concentrations of tantalum and cesium compared to most lithium pegmatites.
Warren Township Feldspar: The project is near road and rail infrastructure that grants easy access to markets in Southern Ontario and Northeastern United States. It contains calcium feldspar, which is used for reinforcing glass fiber.
Management Team
Donald S. Bubar - President and CEO
President and CEO Don Bubar is a geologist with over 40 years of experience in mineral exploration and development in Canada. Bubar has a bachelor’s of science degree from McGill University and a master’s of science from Queen’s University. From 1984 to 1994, he worked for Aur Resources as exploration manager and later vice president of exploration. Bubar has been president and CEO of Avalon Advanced Materials since 1995. He served as a director of the Prospectors and Developers Association of Canada (PDAC) for nine years and chair of its Aboriginal Affairs Committee from its creation in December 2004 until retiring from the PDAC board in March 2013. Throughout his career, he has been an advocate for increased Indigenous participation in the mineral industry, first through the PDAC, and later through the NWT and Nunavut Chamber of Mines. In addition, Bubar serves on the Advisory Board to the Faculty of Science of McGill University and on the board of directors of PDAC's earth science education program; Mining Matters.
R.J. (Jim) Andersen - CFO, Vice President of Finance, and Corporate Secretary
Jim Andersen is a chartered professional accountant with 30 years of experience in the mining industry. He graduated with high distinction from the University of Toronto with a bachelor’s of commerce degree, then started his career with the mining services team at Coopers & Lybrand in Toronto, Ontario. He received his chartered accountant designation in 1993, after having placed 20th in Ontario on the 1992 Uniform Final Exam. Andersen began his own accounting practice in 1994 and was in charge of Avalon Advanced Material's audit from 1996 to 2000, prior to joining the company as its CFO in 2001.
Cindy Hu - Controller
Cindy Hu joined Avalon Advanced Materials in 2007, prior to which she was a senior manager with the accounting firm Andersen & Company. She is a chartered professional accountant with over 20 years of experience in public accounting practice and financial reporting, primarily for junior public companies and private wealth management portfolios. Hu earned her bachelor’s of commerce degree from Laurentian University in 1996.
Georgi Doundarov, M.Sc., P.Eng, PMP, CCP - Senior Metallurgist
Georgi Doundarov has over 30 years of extensive managerial, operations, technical, project, and financial experience in Canada, Europe, and Asia. His experience covers the whole life cycle of a mine from studies, engineering, construction, commissioning and operations to closure. In addition, he has in-depth technical expertise in process engineering, plant design, construction, commissioning and closure, project and operations management, plant evaluation and optimization, NI 43-101 compliant feasibility studies, metallurgical testing. He also has expertise in research and development for base, precious, ferrous, and specialty metals and industrial minerals. Qualified Person under NI 43-101, Professional Engineer of Ontario, Certified Project Management Professional (PMP) under the PMI, Certified Cost Professional (CCP) under the AACEI.
Zeeshan Syed - Vice President of External Affairs
Zeeshan Syed is a graduate of the London School of Economics with a master’s of comparative politics and economics degree. He has over fifteen years of multi-sector executive leadership and brings deep expertise as an international business development expert, climate change negotiator, nonprofit founder, and natural resources regulator. This provides Syed with a unique perspective of an energy system increasingly marked by change and disruption. Prior to joining Avalon Advanced Materials in 2019, Syed was focused on public-private partnerships and management in public service, the nonprofit sector, and politics. He has served in the Office of the Prime Minister, with the Government of Alberta, and with the United Nations Secretariat.
Amiel Blajchman - Manager of ESG and Sustainability
Amiel Blajchman is a professional agrologist and a Canadian expert in environmental and social impact assessment and community engagement. He has over 19 years’ experience working for private sector clients, Indigenous communities, government agencies, mining companies. Blajchman has experience working with international multilateral banks in managing the environmental, social, and governance (ESG) risks of complex, high-profile projects.
Blajchman refined his expertise during senior roles leading Cedar Water Strategy, an ESG consulting firm. He served as lead sustainability executive with multiple mining companies, managing more than 50 employee departments with annual budgets of greater than US$14 million. Amiel has delivered impact assessment training to industry, community, and government, serving as a senior advisor to federal Deputy Ministers. He has a strong reputation for success in the industry with a proven track record managing natural resource sector projects. Blajachman has experience working in over nine countries on four continents and is fluent in both French and English. Currently, he is the vice chair of Ve’ahavta: Jewish Humanitarian Response, chair of Ve'ahavta risk management and governance committees, and has served on various other charitable boards. Bajchman has also been involved in developing domestic emission trading regulations and greenhouse gas (GHG) offset systems.
Amin Dhillon - Director of Communications
Amin Dhillon joins Avalon after a decade working in national media. She has extensive experience working with brands and media outlets to create and produce digital media content and branded communications. Her media work specializes in sharing stories that focus on diversity and inclusion. Dhillon graduated from the University of Manitoba with a degree in commerce.
Staff and Consultants
Ron Malashewski, P.Eng (AB), Community Relations Consultant, Kenora
David Marsh, FAusIMM (CP), Senior Consulting Metallurgist
William Mercer, Ph.D., P.Geo, Consulting Geologist
Chris Pedersen, P.Geo., Consulting Project Geologist
Mark Wiseman, BSc (Hon), MBA, Sustainability Consultant
EmergingGrowth.com a leading independent small cap media portal with an extensive history of providing unparalleled content for the Emerging Growth Companies and Markets announces the Schedule of the 33 rd Emerging Growth Conference.
The Emerging Growth Conference identifies companies in a wide range of growth sectors, with strong management teams, innovative products & services, focused strategy, execution, and the overall potential for long-term growth.
All interested in attending should visit the following link to register. You will then receive an email containing the link and time to sign into the conference.
These exciting virtual conferences are like attending an "in person" event, you can sign in and out as often as you like.
About EmergingGrowth.com
Founded in 2009, Emerging Growth.com quickly became a leading independent small cap media portal. Over the years, it has developed an extensive history of providing unparalleled content, in identifying emerging growth companies and markets that can be overlooked by the investment community.
The next step in its evolution is the Emerging Growth Conference.
About the Emerging Growth Conference
The Emerging Growth conference is an effective way for public companies to present and communicate their new products, services and other major announcements to the investment community from the convenience of their office, in an effective and time efficient manner.
The audience includes potentially tens of thousands of Individual and Institutional investors, as well as Investment advisors and analysts.
All sessions will be conducted through video webcasts and will take place in the Eastern time zone. Our conference serves as a vehicle for Emerging Growth to build relationships with our existing and potential clients. Accordingly, a certain number of the presenting companies are our current clients, and some may become our clients in the future. In exchange for services we provide, our clients pay us fees in the form of cash and securities, and we may currently have, or in the future may have investments in the securities of certain of the presenting companies. Finally, certain of the presenting companies have paid us a fee to secure a presentation time slot or to present generally. The presentations to be delivered by the presenting companies (including any handouts of written materials) have not been approved, endorsed by or otherwise reviewed by EmergingGrowth.com nor should they in any way be construed to have been made in connection with an offer to sell or a solicitation of an offer to buy securities. Please consult an investment professional before investing in anything viewed on the Emerging Growth Conference or on EmergingGrowth.com.
If you believe your company, product or service is at the cusp of going mainstream, or you have an idea for an "Emerging Growth" company that might fit our model, contact us here.
Thank you for your interest in our conference, and we look forward to your participation in future conferences.
UPDATED BROADCASTER SCHEDULE: On national TV Sat. June 4 & Sun. June 5, 2022 - BTV-Business Television showcases emerging companies in the markets.
Discover Companies to Invest In - Click company name to watch their TV feature:
Dolly Varden Silver Corp. (TSXV: DV) (OTCQX: DOLLF) - BTV goes to see Dolly Varden as they advance one of the largest high-grade, undeveloped precious metal assets in BC's Golden Triangle.
Li-Metal Corp. (CSE: LIM) (OTC Pink: LIMFF) - With a battery technology future just around the corner, BTV learns how this company plans to tackle the growing supply chain issues the EV market presents.
PopReach Corporation (TSXV: POPR) (OTCQX: POPRF) - BTV visits PopReach, a digital media consolidator that's providing investors with exposure to a complementary portfolio of high digital assets.
E3 Lithium (TSXV: ETMC) (OTCQX: EEMMF) - BTV discovers how E3's Direct Lithium Extraction (DLT) technology allows them to recover lithium efficiently and sustainably to service this burgeoning new economy.
Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) - As consumers make the switch to electric vehicles, lithium demand rises. BTV explores how Avalon looks to establish Ontario's first regional lithium battery materials refinery.
About BTV:
On air for more than 20 years, BTV - Business Television, a half-hour investment TV show, features analysts and emerging companies at their location. With Hosts, Taylor Thoen and Jessica Katrichak, BTV shares investment opportunities with viewers.
TV BROADCAST NETWORKS and TIMES: CANADA:
BNN Bloomberg - Saturday June 4 @ 8:00pm ET, Sunday June 5 @ 5:30pm ET Bell Express Vu - Saturday June 4 @ 8:00pm ET, Sunday June 5 @ 5:30pm ET
US National TV: Biz Television Network - Sun June 5 @ 8:30am ET
Suggest a Company to Feature! Contact: (604) 664-7401 x3 info@b-tv.com To receive BTV news, click here to subscribe.
On national TV Sat. May 28 & Sun. May 29, 2022 - BTV-Business Television showcases emerging companies in the markets.
Discover Companies to Invest In - Click company name to watch their TV feature:
Dolly Varden Silver Corp. (TSXV: DV) (OTCQX: DOLLF) - BTV goes to see Dolly Varden as they advance one of the largest high-grade, undeveloped precious metal assets in BC's Golden Triangle.
Li-Metal Corp. (CSE: LIM) (OTC Pink: LIMFF) - With a battery technology future just around the corner, BTV learns how this company plans to tackle the growing supply chain issues the EV market presents.
PopReach Corporation (TSXV: POPR) (OTCQX: POPRF) - BTV visits PopReach, a digital media consolidator that's providing investors with exposure to a complementary portfolio of high digital assets.
E3 Metals Corp. (TSXV: ETMC) (OTCQX: EEMMF) - BTV discovers how E3's Direct Lithium Extraction (DLT) technology allows them to recover lithium efficiently and sustainably to service this burgeoning new economy.
Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) - As consumers make the switch to electric vehicles, lithium demand rises. BTV explores how Avalon looks to establish Ontario's first regional lithium battery materials refinery.
About BTV:
On air for more than 20 years, BTV - Business Television, a half-hour investment TV show, features analysts and emerging companies at their location. With Hosts, Taylor Thoen and Jessica Katrichak, BTV shares investment opportunities with viewers.
TV BROADCAST NETWORKS and TIMES:
CANADA: BNN Bloomberg - Saturday May 28 @ 8:00pm ET, Sunday May 29 @ 4:30pm ET Bell Express Vu - Saturday May 28 @ 8:00pm ET, Sunday May 29 @ 4:30pm ET
US National TV: Biz Television Network - Sun June 5 @ 8:30am ET
Suggest a Company to Feature! Contact: (604) 664-7401 x3 info@b-tv.com To receive BTV news, click here to subscribe.
Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) ("Avalon" or the "Company") is pleased to announce that it has entered into a $3,000,000 convertible security funding agreement (the "Funding Agreement") with Lind Global Fund II, LP, an entity managed by The Lind Partners, a New York based institutional fund manager (together "Lind").
The convertible security to be issued under the Funding Agreement will have a two year term and will accrue a simple interest rate obligation of 10% per annum on the funded amount, which is prepaid and attributed to its face value upon issuance, resulting in a face value of $3,600,000 (the "Face Value"). Lind will be entitled to convert the Face Value amount over a 24 month period, subject to certain limits, at a conversion price equal to 85% of the five day trailing volume weighted average price of Avalon's common shares prior to the date of conversion. The convertible security matures 24 months after closing. Commencing 30 days after the expiry of the 4-month statutory hold applicable to the convertible security, Avalon has the right to repurchase the convertible security, subject to the holder's option to convert up to one third of the Face Value into Avalon common shares prior to this repurchase.
The proceeds will be used to accelerate the planned work program for the Company's Separation Rapids Lithium Project near Kenora, Ontario and cover near term working capital requirements. The work will include preparing for feasibility study work both at Separation Rapids and for the planned lithium battery materials refinery in Thunder Bay, Ontario.
In conjunction with the closing of the Funding Agreement, Lind will receive a closing fee of $90,000, and 9,000,000 common share purchase warrants. Each warrant entitles the holder to purchase one common share of the Company at a price of $0.26 per common share until 48 months after closing.
Pursuant to Canadian securities laws, the securities issuable under this private placement will be subject to a hold period which expires four months and one day after closing. The Company has received conditional approval of the TSX in connection with this financing.
This news release is not an offer of securities for sale in the United States. The securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) absent registration or an applicable exemption from registration. All currency reported in this release is in Canadian dollars.
About The Lind Partners The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind's funds make direct investments ranging from US$1 to US$30 million, invest in syndicated equity offerings and selectively buy on market. Having completed more than 100 direct investments totaling over US$1 Billion in transaction value, Lind's funds have been flexible and supportive capital partners to investee companies since 2011. For more information, please visit http://www.thelindpartners.com.
About Avalon Advanced Materials Inc. Avalon Advanced Materials Inc. is a Canadian mineral development company specializing in sustainably-produced materials for clean technology. The Company now has four advanced stage projects, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, cesium and zirconium. Avalon is currently focusing on developing its Separation Rapids Lithium Project near Kenora, Ontario while continuing to advance other projects, including its 100%-owned Lilypad Cesium-Tantalum-Lithium Project located near Fort Hope, Ontario. Social responsibility and environmental stewardship are corporate cornerstones.
For questions and feedback, please e-mail Avalon President and CEO, Donald Bubar, at ir@AvalonAM.com.
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements related to issuance of the convertible security under the Funding Agreement, how the Company plans to use the net proceeds from the financing and that the planned work program includes preparing for feasibility study work both at Separation Rapids and for the planned lithium battery materials refinery. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "potential", "scheduled", "anticipates", "continues", "expects" or "does not expect", "is expected", "scheduled", "targeted", "planned", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be" or "will not be" taken, reached or result, "will occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Avalon to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. Although Avalon has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to market conditions, and the possibility of cost overruns or unanticipated costs and expenses as well as those risk factors set out in the Company's current Annual Information Form, Management's Discussion and Analysis and other disclosure documents available under the Company's profile at www.SEDAR.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements have been provided for the purpose of assisting investors in understanding the Company's plans and objectives and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements. Avalon does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
The Power Play by The Market Herald has announced the release of new interviews Eat Well Group, Metallic Minerals, Kidoz Inc, Givex, Silver Bullet Mines and Avalon Advanced Minerals on their latest news
The Power Play by The Market Herald provides investors with a quick snapshot of what they need to know about the company's latest press release through exclusive insights and interviews with company executives.
Eat Well Group's (CSE:EWG) portfolio company announces plans to expand its production facilities
Eat Well Group (EWG) portfolio company, Belle Pulses, plans to upgrade and expand its production facilities. Belle produced approximately 90,000 metric tonnes of protein in 2021. Belle is planning increased shifts at its main plant in Saskatchewan to increase Canadian annual production capacity to nearly 100,000 metric tons annually. Mark Coles, Chief Investment Officer of Eat Well Group sat down with Shoran Devi to discuss the news.
Metallic Minerals (TSXV:MMG) appoints Scott Petsel as president
Metallic Minerals (MMG) has appointed Mr. Scott Petsel as president, effective immediately. Mr. Petsel has been Vice President of Exploration for Metallic Minerals since 2016 . Chairman and CEO, Greg Johnson sat down with Shoran Devi to discuss the appointment.
Kidoz Inc. (TSXV:KIDZ) reports record fiscal 2021 financial results
Total revenue of $12,475,480 an increase of 75 per cent over fiscal 2020 . Advertising revenue of $12,243,866 an increase of 81 per cent over fiscal 2020. Adjusted EBITDA of $1,507,951 compared to $771,236 in fiscal 2020. Jason Williams, Co-CEO at KIDOZ sat down with Shoran Devi to discuss the company's record results.
Givex Information Technology Group (TSX:GIVX) announces fiscal year and Q4 2021 financial results
Givex Information Technology Group Limited (GIVX) has announced its financial results for the fiscal year and three-month periods ending Dec. 31, 2021. Revenue grew 7.1 per cent to $55.2 million in 2021. POS GTV increased 81 per cent to $269 million in Q4, 2021. POS gross transaction volume for increased 54 per cent to $793 million in 2021. Don Gray, CEO of Givex sat down with Shoran Devi to discuss the news.
Silver Bullet Mines (TSXV:SBMI) releases assay results from the Buckeye Mine
Silver Bullet Mines Corp. (SBMI) has released recent results from an assay program at its Buckeye Silver Mine in Arizona. Director and VP Capital Markets Peter Clausi spoke with Shoran Devi about the results.
Avalon Advanced Materials (AVL) has announced a strategic partnership to co-develop a lithium refinery. The Toronto-based mineral development company signed a binding letter of intent with RenJoules International, an Essar Group Company. CEO, Don Bubar sat down with Shoran Devi to discuss the partnership.
Interviews for The Power Play by The Market Herald are released daily. To learn more about the companies featured in The Power Play or to explore our other interviews visit The Power Play by The Market Herald.
About The Market Herald
The Market Herald Canada is the leading source of authoritative breaking stock market news for self-directed investors. Our team of Canadian markets reporters, editors and technologists covers the entire listed company universe in Canada. We cover over 3,985 businesses, their people, their investors, and their customers. We write the stories that move the Canadian capital markets.
DISCLAIMER: Report Card Canada Media Ltd. ("Report Card") is a wholly-owned subsidiary of Market Herald Limited, an Australian company ("Market Herald"). Report Card is not an advisory service, and does not offer, buy, sell, or provide any other rating, analysis or opinion on the securities we discuss. We are retained and compensated by the companies that we provide information on to assist them with making information available to the public. All information available on themarketherald.ca and/or this press release should be considered as commercial advertisement and not an endorsement, offer or recommendation to buy or sell securities. Report Card is not registered with any financial or securities regulatory authority in any province or territory of Canada, will not be performing any registerable activity as defined by the applicable regulatory bodies and do not provide nor claim to provide investment advice or recommendations to any visitor of this site or readers of any content on or originating from themarketherald.ca. Market Herald and/or its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities and/or commodities and/or commodity futures contracts in certain underlying companies mentioned in this site and which may also be clients of Market Herald's affiliates. In such instances, Market Herald and/or its affiliates and/or their respective officers, directors or employees will use all reasonable efforts to avoid engaging in activities that would lead to conflicts of interest and Market Herald and/or its affiliates will use all reasonable efforts to comply with conflicts of interest disclosures and regulations to minimize any conflict. All the information on this document and/or the website - themarketherald.ca - is published in good faith and for general information purpose only. Report Card does not make any warranties about the completeness, reliability, and accuracy of this information. Any action you take upon the information you find on this document and/or website (themarketherald.ca) is strictly at your own risk. Report Card will not be liable for any losses and/or damages in connection with the use of our website. From our website, you can visit other websites by following hyperlinks to such external sites. While we strive to provide only quality links to useful and ethical websites, we have no control over the content and nature of these sites. These links to other websites do not imply a recommendation for all the content found on these sites. Site owners and content may change without notice and may occur before we have the opportunity to remove a link which may have gone 'bad'. Please be also aware that when you leave our website, other sites may have different privacy policies and terms which are beyond our control. Please be sure to check the Privacy Policies of these sites as well as their "Terms of Service" before engaging in any business or uploading any information.
Critical Resources Limited (ASX:CRR) (“Critical Resources” or “the Company”) is pleased to announce further results from its latest drilling campaign at the Company’s 100 per cent-owned Mavis Lake Lithium Project (“the Project”) in Ontario, Canada.
Highlights
Multiple spodumene-bearing pegmatite dykes intersected totalling 28.25m in step out hole in MF22-117 including 23.9m spodumene mineralisation from 126.1m to 150m downhole1,2,3
Multiple spodumene-bearing pegmatite dykes intersected totalling 14.6m in hole MF22-118 including 9.75m spodumene mineralisation from 247.75m to 257.5m downhole, demonstrating minearalisation at previously unseen depth1,2,3
A total of 53 of 59 drill holes have intersected spodumene-bearing pegmatite to date, including most recent holes from MF22-117 to MF22-118
Assay work is ongoing and will be released as received, the Company continues its pursuit of a maiden JORC-compliant resource
The visual spodumene-bearing pegmatite zones intersected in MF22-117 and MF22-118 are located down dip from previously announced MF22-116 zone (August 2, 2022 ASX Announcement). These visual zones illustrate the pegmatites geometries and that the zones continue at depth, with the greatest vertical depth drilled to date of ~250m within MF22-118.
These visual zones continue to provide support of significant pinching and swelling throughout the pegmatites. The swell areas can host a significant amount of spodumene laths (as confirmed through visual identification) and provide significant thickness of mineralisation. Understanding the geometries of the pegmatites will aid in further zone delineation as we continue to test the continuity east of Pegmatite 6 and towards Pegmatite 18.
A total of 7,960m out of 10,000m of approved drilling has been completed to date, with the Company’s primary focus to continue drilling an infill program, followed by testing the approximate 3km of potential strike length towards Pegmatite 18.
Immediate 50m infill drill-hole spacing will continue to test strike length and down-dip continuity to further delineate the spodumene-bearing pegmatites to underpin the development of a maiden JORC compliant resource.
The Mavis Lake Project’s location provides a strategic advantage, situated just 19km from the town of Dryden. The project area is adjacent to the main rail and road networks connecting directly to Thunder Bay, which is being touted as a proposed regional hub for lithium processing.
This article includes content from Critical Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Editor's note — This article was originally focused on the top Canadian lithium stocks, but has been expanded to cover the top lithium stocks globally. Click here to read about the top Canadian lithium stocks.
You can also click here to read the previous top lithium stocks article.
Lithium prices hit an all-time high in 2021 and continued that trend into 2022. Although prices have cooled slightly from their peak in March, they're still sitting near historic levels.
Here the Investing News Network takes a look at the top lithium stocks with year-to-date gains. The list below was generated using TradingView’s
stock screener on July 11, 2022, for Canadian companies, and July 13, 2022, for US and Australian companies. It includes companies listed on the NYSE, NASDAQ, TSX, TSXV and ASX; all top lithium stocks had market caps above $10 million when data was gathered.
SQM is one of the world’s largest lithium companies. It produces lithium out of Chile’s Salar de Atacama and brings it to the market in the form of lithium carbonate and lithium hydroxide.
SQM is developing the hard-rock Mount Holland lithium project in Australia through a joint venture with Wesfarmers (ASX:WES,OTC Pink:WFAFF). The company places a heavy emphasis on the sustainability of its operations, including a production process that involves 97.4 percent solar energy.
On March 2, SQM released its 2021 earnings report, including net income of US$585.5 million compared to US$164.5 million for 2020. April 26 brought its annual general shareholders meeting, for which it released its resolutions. SQM's share price spiked in May to hit US$90.21 on May 18, the same day the company announced both its Q1 earnings report and the approval of an interim dividend payment. It hasn’t released any news since then, but its share price continued to spike through late May, reaching a year-to-date high of US$113.33.
In Minas Gerais, Brazil, Sigma Lithium has its Grota do Cirilo hard-rock lithium project, which has been in production at a pilot scale since 2018. Sigma expects Phase I production of 220,000 metric tons (MT) annually. According to the company, its goal is to become “one of the world’s largest, lowest-cost producers of high-purity, environmentally sustainable lithium products.” Sigma is constructing its greentech dense media separation production plant, which will make its operations vertically integrated.
The company was recently recognized by the Bank of America (NYSE:BAC) as part of its “Top 50 Stocks for 10 Scarcity Themes.” In late March, the company announced environmental, social and governance steps it would be taking, including donating 7,000 food baskets to the region it operates in. In mid-April, the company updated its feasibility study for Grota do Cirilo with a potential production capacity increase to 450,000 MT per year. Its share price spent much of April and early May elevated before falling back down.
On May 26, Sigma filed a consolidated technical report that looks at two initial production phases for Grota do Cirilo. The integrated operation would source feedstock spodumene ore from the company's Phase 1 and Phase 2 lithium deposits to produce battery-grade, high-purity lithium concentrate. The company pegs the after-tax net production revenue at US$5.1 billion and the after-tax internal rate of return at 589 percent, and states that this expansion scenario "will potentially position (it) as the world’s fourth largest lithium producer." The news led to Sigma's share price spiking to a year-to-date high of US$18.30 on May 27.
Most recently, Sigma shared that it has increased the resource at Grota do Cirilo by 50 percent.
Nevada Sunrise Gold may have gold in its name, but 2022 has been all about lithium. The explorer wholly owns two lithium projects, the Gemini and Jackson Wash assets, which are located in the Lida Valley basin in Nevada. According to Nevada Sunrise, the valley shares similar geography to the nearby Clayton Valley basin, where Albemarle’s (NYSE:ALB) Silver Peak lithium mine is located. In addition to its lithium properties, the company owns 100 percent of the Coronado VMS project, 20 percent of the Kinsley Mountain gold project and 15 percent of both the Treasure Box copper project and the Lovelock Mine cobalt project.
In the first quarter, Nevada Sunrise Gold’s share price saw little movement, even as it commenced exploration at Gemini. It wasn’t until the company shared its first drill results on April 18 that its share price broke above C$0.10, jumping from C$0.08 to C$0.14 overnight. Further exploration results at the project, including 1,101 parts per million lithium over 730 feet, continued to drive its share price higher.
After rising through May and early June, the company’s share price hit a year-to-date high of C$0.36 on June 10 off the back of June 6 exploration results showing 327.7 milligrams of lithium per liter of water over 220 feet, as well as private placement news. Its most recent news came on July 11, when the company shared preliminary results from a May time-domain electromagnetic survey.
Jourdan Resources is focused on acquiring, exploring and developing hard-rock spodumene lithium projects in Quebec, Canada. Its current projects are the Vallée lithium, Baillarge lithium-molybdenum and Preissac-La Corne lithium. According to the company, it has the largest lithium exploration portfolio in Quebec.
Jourdan Resources’ share price saw a spike to start the year — hitting a year-to-date high of C$0.10 — but then performed relatively flatly for much of the first half of the year, staying mostly around C$0.05 to C$0.06. The company’s share price began to rise again in June, during which time it shared exploration results at Vallée, including a highlight of 3.2 meters at 1.56 percent Li2O. Its share price hit C$0.09 in June and again in July, and its most recent news came on July 7, when it shared its latest exploration results at Vallée.
Lithium Energi Exploration is an acquisition, exploration and development company working in South America’s Lithium Triangle, with over 72,000 hectares of lithium brine concessions in Argentina’s section of the triangle.
In January, the company announced that exploration and development with its joint venture partner Global Oil Management Group was accelerating. The name of the new joint venture is Triangle Lithium Argentina.
On March 24, the company shared that, alongside its new joint venture Triangle Lithium Argentina, it would soon commence exploration drilling in the Antofalla basin. This news caused its share price to shoot up over the following weeks, moving from C$0.21 on March 24 to a year-to-date high of C$0.35 by April 11. On June 21, the company announced that drilling had commenced, and would encompass 2,400 meters over six wells at the basin. Although its share price has fallen since its April highs, it’s still up significantly year-to-date.
Xantippe Resources is developing its Carachi lithium project in Argentina after pivoting to focus on what it calls the lithium super trend. The company’s goal is to provide high-purity, battery-quality lithium, and it is acquiring multiple tenements in the Lithium Triangle to accomplish that goal. Xantippe’s land package is located near Lake Resources’ (ASX:LAC,OTCQB:LLKKF) Kachi lithium project. In addition, the company has its Southern Cross gold project in Western Australia, which it is investigating for lithium-bearing pegmatites.
In 2022, Xantippe exercised its option to acquire Carolina Lithium, which gave it access to the Carachi Pampa project. Additionally, it has exercised its options to acquire the Rita and Rita 1 tenements, the La Sofia tenement and the Luz Maria tenement, all expanding the company's footprint in the Lithium Triangle. Xantippe's share price hit a year-to-date high of AU$0.015 in April.
On June 14, Xantippe announced that it had increased its footprint of lithium brine tenements in the country from 12,400 to 21,900 hectares after obtaining options for four more land packages. Most recently, the company obtained exploration and prospecting licences for the Southern Cross project.
According to Core Lithium, its Finniss lithium project in the Northern Territory is “one of Australia’s most capital-efficient and lowest-cost spodumene lithium projects.” First production is expected in the fourth quarter of 2022, and the company already has multiple four year offtake agreements in place with Ganfeng Lithium (SZSE:002460) and Sichuan Yahua Industrial Group (SZSE:002497).
On March 1, Core Lithium announced a four year offtake arrangement with Tesla (NASDAQ:TSLA) for up to 110,000 tonnes of lithium oxide spodumene concentrate from Finniss. Shares saw a spike at the beginning of April following the release of an update on exploration at its Finniss project, and Core hit a year-to-date high of AU$1.60 on April 4. A week later, the company announced that it was acquiring the Shoobridge lithium project near Finniss.
In May, Core shared its final 2021 lithium assays, which include a highlight of 35 meters of 0.84 percent Li2O, including 10 meters at 1.44 percent. The company has released two updates on development of the Finniss project in recent months, one in May and one in June. Most recently, the company shared that the mineral resource estimate for Finniss has increased by 28 percent to 18.9 million MT at 1.32 percent Li2O; Core believes that its 2022 drilling will lead to “further significant increases.”
Year-to-date gain: 26.62 percent; market capitalization: AU$453.01 million current share price: AU$0.975
Prospect Resources is a battery metals explorer and developer focused on Zimbabwe and sub-Saharan Africa. The company is in the early stages of an exploration program at its Step Aside lithium project in the Harare greenstone belt in Zimbabwe. The company anticipates drilling in Q3 2022.
In April, the company completed the sale of its 87.5 percent interest in the Arcadia lithium project to Huayou International Mining (Hong Kong), which is a subsidiary of Zhejiang Huayou Cobalt (SHA:603799). Prospect received US$342.9 million in net proceeds from the sale, the majority of which it plans to distribute to shareholders. On April 29, the company shared its quarterly activities report for Q1. The company’s share price has climbed through the year to reach a year-to-date high of AU$0.99 on July 8.
Is lithium a good investment?
The lithium price has seen huge success over the past year, and many stocks are up alongside that. It's up to investors to decide if it's time to get in on the market, or if they’ll try to wait for a dip.
A wide variety of analysts are bullish on the market as electric vehicles continue to prosper, and lithium demand from that segment alone is expected to continue to rise. These experts believe the lithium story's strength will continue over the next decades as producers struggle to meet rapidly growing demand.
How to invest in lithium
Unlike many commodities, investors cannot physically hold lithium due to its dangerous properties. However, those looking to get into the lithium market have many options when it comes to how to invest in lithium.
Lithium stocks like those mentioned above could be a good option for investors interested in the space. If you’re looking to diversify instead of focusing on one stock, there is the Global X Lithium & Battery Tech ETF (NYSE:LIT), an exchange-traded fund (ETF) focused on the metal. Experienced investors can also look at lithium futures.
How to buy lithium stocks
Lithium stocks can be found globally on various exchanges. Through the use of a broker or an investing service such as an app, investors can purchase individual stocks and ETFs that match their investing outlook.
Before buying a lithium stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it's critical to complete due diligence before making any investment decisions.
It's also important for investors to keep their goals in mind when choosing their investing method. There are many factors to consider when choosing a broker, as well as when looking at investing apps — a few of these include the broker or app's reputation, their fee structure and investment style.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Lauren Kelly, currently hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Nevada Sunrise Gold and Jourdan Resources are clients of the Investing News Network. This article is not paid-for content.
Critical Resources Limited (ASX:CRR) (“Critical Resources” or the “Company”), advises that further to the announcements dated 9 April 2021, 2 August 2021, 10 August 2021 and 26 August 2021 the Company has reached a mutually agreeable outcome with the Ministry of Energy and Minerals, Sultanate of Oman (Minerals Department) regarding license fees for the ongoing exploration of Block 4 and Block 5, Sohar Copper Project in Oman.
The Block 5 resource, for which Critical Resources holds a 65% interest is a high grade, near surface, copper plus silver and gold resource.
About Sohar Copper Project
The Company’s assets are located near Sohar in the Sultanate of Oman.
The Project covers 1,006 km² of the copper-rich Ophiolite belt, proven to host clusters of relatively high grade VHMS copper deposits. Ores within these deposits are metallurgically simple and contain gold and silver credits.
The Company holds a 51% interest in Block 4 (granted Exploration Licence), a 65% interest in Block 5 (granted Exploration Licence and 2 Mining Lease applications) and a 70% interest in two Exploration Licence applications near Block 10 to the West of Blocks 4 and 5.
Measured, Indicated and Inferred Mineral Resources (2012 JORC) of 0.82Mt at 3.4% Cu (including a high-grade zone of approximately 0.5Mt at 4.5% Cu)(gross deposit) is contained in two deposits within Block 5. Contained metal is reported at 28,000 tonnes of Copper, 5,900 ounces of Gold and 220,000 ounces of Silver. Further details can be seen in the Company’s announcement of 1 September 2020.
This article includes content from Critical Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
European Lithium Limited (ASX: EUR, FRA: PF8, OTC: EULIF) (EUR or the Company) is pleased to announce it has signed a non-binding memorandum of understanding (MoU) with European auto manufacturer BMW AG (BMW) to secure EUR’s first offtake of battery grade Lithium Hydroxide (LiOH).
Highlights
EUR to provide exclusive rights to supply battery grade lithium hydroxide;
MoU establishes understanding to negotiate final commercial terms, including US$15m prepayment
EUR Chairman, Tony Sage, commented: "Securing our first offtake with BMW AG is another key milestone for the Company. Partnering with BMW AG is an ideal fit for EUR".
Under the MoU, EUR and BMW AG will work together to negotiate suitable commercial terms for BMW AG to purchase the LiOH produced by EUR. EUR grants BMW AG the first right to purchase 100% of the LiOH produced from the identified resources.
In the event both parties agree to a binding contract, BMW AG will make an upfront payment of US$15 million, which will be repaid through equal set offs against LiOH delivered to BMW AG. Proceeds from the prepayment will be used for the development of the Wolfsberg Project including supporting the commencement of the construction phase and further progress towards the successful implementation of the Wolfsberg Project.
Securing its first offtake is a key milestone allowing the Company to focus on the final steps of development and implementation of the Wolfsberg Project while it looks to the future and builds a portfolio of prospective battery metals projects located in Europe.
The parties are currently negotiating binding agreements, and no assurance is given that the any binding agreements will be entered into.
About the BMW Group
With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.
In 2021, the BMW Group sold over 2.5 million passenger vehicles and more than 194,000 motorcycles worldwide. The profit before tax in the financial year 2021 was € 16.1 billion on revenues amounting to € 111.2 billion. As of 31 December 2021, the BMW Group had a workforce of 118,909 employees.
The success of the BMW Group has always been based on long-term thinking and responsible action. The company set the course for the future at an early stage and consistently makes sustainability and efficient resource management central to its strategic direction, from the supply chain through production to the end of the use phase of all products.
This announcement has been authorised for release to the ASX by the Board of the Company.
This article includes content from European Lithium Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Click here to read the previous lithium market update.
After rallying to all-time highs in 2021, lithium prices began to stabilize in the first few months of 2022.
Demand for the battery metal is expected to soar in the coming decades, with questions about supply increasing.
How did lithium perform in the second quarter of 2022, and what’s ahead for the commodity in the near term? The Investing News Network (INN) asked experts about the main news that impacted the lithium market in Q2, plus a look at what investors should watch for during the rest of the year.
Lithium market update: Price performance
Last year saw lithium climb on the back of strong demand from the electric vehicle (EV) industry, and even though prices have started to stabilize, they're up over 123 percent, as per Benchmark Mineral Intelligence data.
On the supply side, availability of material from domestic Chinese brineresources ramped up as expected over late Q2 as warmer weather improved seasonal evaporation rates, analyst Daisy Jennings-Gray told INN.
Meanwhile, on the demand side, COVID-19 lockdowns in China, particularly Shanghai, gave rise to an unexpected hit on demand from the EV sector, with a number of vehicle manufacturing plants shutting down over April.
“Given growing concerns over rising COVID-19 cases in China, combined with reports that Chinese regulators were looking to prevent prices from climbing so rapidly, there were some expectations at the beginning of Q2 that lithium prices might not see the same upward climb experienced in Q1, with this expectation coming to reality,” Jennings-Gray, who works for Benchmark Mineral Intelligence, said.
“What we're seeing is just a pause on the demand side because of the lockdowns in China,” he said. “And I think it's more that consumer demand has been constrained rather than falling back.”
As lockdown measures ease, Adams is expecting lithium prices to move higher.
“I don’t think we’ve seen the peak in prices yet,” he told INN at the event, which was held in Phoenix, Arizona. “We expect to see that towards the end of this year, or maybe the first quarter next year.”
Listen to the interview above for more thoughts on lithium from Fastmarkets' Adams.
For Martin Jackson of CRU Group, prices have remained higher than expected due to renewed demand from China post-lockdowns. “(We) certainly expect them to track lower in Q3 before demand returns again in Q4,” he said.
Lithium market update: Supply and demand
At the end of 2021, most analysts agreed that demand would outpace supply in 2022, and they were forecasting a deficit ahead. Even though a supply response is expected from the market, which could alleviate the current tightness, demand for lithium is still expected to be higher as EV sales continue to increase in key markets.
June figures from the Chinese EV market show that the industry has already seen a significant recovery following lockdowns in Shanghai, with record-breaking production and sales numbers. For 2022, EV sales in the leading Asian country are expected to reach 6.4 million units, more than double 2021 levels, S&P Global predicts.
“Provided there are no further strict lockdowns that could impede production, it seems like demand from the EV sector will continue to accelerate into Q3,” Jennings-Gray said.
The market still looks tight heading into H2, with a limited number of new lithium projects set to come online.
“There are some expansion ambitions in the pipeline that could provide some additional supply-side relief if project timelines are met. However, it seems unlikely that this will balance strong demand from the EV industry,” Jennings-Gray added.
It is probable that demand hindered from the second quarter will be shifted to the second half of the year, “when demand is typically at its highest anyway,” the analyst said.
All in all, Benchmark Mineral Intelligence is still forecasting a lithium market deficit in 2022.
“Investments from Chinese majors into lithium resources in Jiangxi province, alongside improved utilization rates at existing mines in the region, led to a slight increase on the supply side from the Chinese domestic market in the Q2 forecast,” Jennings-Gray said. “However, our expectations over the ability to ramp up this supply further remain conservative, hence we don't expect to see the market balancing on this alone.”
At the same time, demand has remained strong yet stable despite COVID-19 lockdowns in China.
“So we haven't factored in any relief from the demand side, with any stymied demand in Q2 pushed to the latter half of 2022 or early 2023,” Jennings-Gray said.
Lithium market update: Oversupply fears hit, stocks under pressure
During Q2, investment bank Goldman Sachs (NYSE:GS) released a report that increased investors' worries over potential excess lithium supply; the bank also predicted a sharp correction in prices by the end of next year.
However, for Benchmark Mineral Intelligence, the lithium market will remain in structural shortage until 2025.
“The lithium market will balance over the next few years, but it’s unlikely that an unprecedented ramp-up of marginal, unconventional feedstock will fill the deficit. It is also unlikely that demand will weaken significantly,” analysts at the firm said in a note.
Similarly, iLi Markets' Daniel Jimenez doesn’t think supply will be able to catch up with demand at least until 2026 to 2027, mainly because of the difficulty of bringing greenfield projects into production at full capacity.
“Over this period of time, lithium should be the limiting factor in EV sales,” he told INN. “Even with demand growing very strongly, the investments the industry is making today might yield additional capacity in six to 10 years from now that we are not able to see today.”
Speaking with INN in late June, lithium expert Joe Lowry of Global Lithium said the market is in a real structural shortage that is going to last a few years.
“It will be internalized by just about everybody by 2023,” he said. “It's going to be an interesting few years. But I do think that the lithium situation will force adjustments by the OEMs.”
Listen above to learn why lithium expert Lowry thinks lithium's time has come.
With macroeconomic variables hitting the stock market and bearish reports calling for an oversupply situation, lithium stocks have been experiencing downward pressure.
Commenting on the disconnect seen between the stock market and lithium prices, Jon Hykawy of Stormcrow Capital said the electrification of fleets is unstoppable at this point.
“How fast we're going to see that transition, I guess, is the question,” he told INN during an interview at the Fastmarkets lithium conference. “But at this point, optimism is warranted and the stock market eventually will get over whatever it's getting over and it will come back.”
For Chris Berry of House Mountain Partners, when commodities price takes off, it is usually expected to see the equities follow suit. “It's no surprise, in my view, to see the equities kind of take a breather,” he told INN in June.
Berry talked to INN about lithium prices and what's ahead for the market. Listen above to learn more.
When asked about the main challenges faced by lithium miners to bring new supply to the market, CRU’s Jackson pointed to a shortage of technical skills to construct and ramp up new lithium production capacity.
“(Another factor is) attracting investment into mining instead of the middle of the value chain, which has been difficult in the past due to reputational concerns, volatility and environmental, social and governance issues."
For producers, ramping up supply to meet demand will remain a challenge, Jennings-Gray said, with some miners already announcing ambitious expansion projects this year in a bid to keep up with customer requests.
“Further downstream, high feedstock prices will likely be a challenge for refiners, who will continue to see their margins squeezed,” she said.
For newer lithium project developers, sticking to project timelines remains an obstacle.
“(This is) particularly (relevant) if project financing is hinged on offtake agreements that contain deadlines for first delivery, although there are very few new projects set to come online before the end of the year, so this is more of a longer-term target to meet,” Jennings-Gray added.
Commenting on junior mining, Emily Hersh, CEO of Luna Lithium, said entering the lithium market isn't an easy task, and new entrants to the industry face many hurdles.
“There's a lot of noise in terms of what's happening in the market. You really can't control what market conditions are going to be at any given point in time,” Hersh told INN.
Lithium market update: What’s ahead for prices and key catalysts to watch
As the third quarter of the year continues to unfold, there are a few factors that could impact the lithium space.
Typically, additional supply from the Qinghai brine projects across the summer months provides some supply-side relief in China, so this may contribute to continued stabilization across late Q2 and Q3, Jennings-Gray said.
“However, demand remains very high, and EV production and sales statistics rebounded significantly in June following the easing of lockdown restrictions in July, breaking records,” she said. “This could drive some further upside potential for lithium pricing, with demand for carbonate within the Chinese domestic market particularly robust under the resurgence of lithium-iron-phosphate cathode production.”
Outside of China, it is expected that contracted prices will continue to catch up with the Chinese domestic market over Q3, as they did in Q2.
“Although some of the stability in the Chinese market will be translated through to the international market, so price increases may not be quite as significant,” Jennings-Gray said.
The global economic picture will also play into lithium market dynamics in Q3.
“Recession risks, debt levels in China (and) surging inflation cutting into real income in North America and Europe” are all factors that could impact the space, CRU’s Jackson said.
Additionally, the Russia-Ukraine conflict will remain a focus in the European and North American markets.
"The hydroxide market remains very tight given restrictions on the purchasing and transportation of Russian material, which previously acted as a notable source of hydroxide supply for the European market," Jennings-Gray said. “Concerns over hydroxide supply are likely to extend across the rest of the year.”
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Top lithium producer Albemarle (NYSE:ALB) saw its lithium sales increase 178 percent year-on-year in the second quarter on the back of firm demand and higher lithium prices.
Lithium net sales reached US$891.5 million, an increase of US$571.2 million from the previous year, as the company renegotiated contracts and as prices for the battery metal stayed at high levels.
"We delivered another strong quarter throughout the current turbulent market environment, thanks to strong demand and pricing trends, particularly for lithium and bromine,” CEO Kent Masters said. “Over the past year, we have shifted our lithium contracting strategy to realize greater benefits from these strong market dynamics."
Looking ahead, Albemarle is expecting average realized pricing to be up 225 to 250 percent year-over-year due to the renegotiated contracts and increased market pricing. The company anticipates that adjusted profits from its lithium business will jump by 500 percent.
“There is potential upside if market pricing remains near current levels, if contract renegotiations result in additional price improvements, or with additional tolled volumes,” the company said in a statement. “There is potential downside in the event of a material correction in lithium market pricing or potential volume shortfalls, such as delays in acquisitions or expansion projects.”
Albemarle owns lithium brine operations in Clayton Valley near Silver Peak in the US, as well as in the Salar de Atacama in Chile. It also owns a 49 percent stake in Talison Lithium, which runs the massive hard-rock Greenbushes mine, as well as a 60 percent stake in the Wodgina hard-rock lithium mine in Western Australia.
The North Carolina-based company’s Kemerton I conversion plant in Australia achieved first production in July, while initial production of spodumene concentrate from the first and second trains at the MARBL lithium Wodgina mine happened in May and July, respectively.
In Q2, Albemarle posted net income of US$406.8 million compared to a profit of US$424.6 million in the same quarter a year ago. Meanwhile, adjusted EBITDA reached US$610 million, an increase of 214 percent.
On Tuesday (August 2), Albemarle’s rival Livent (NYSE:LTHM) also posted its Q2 results, reporting a profit jump and raising its guidance for 2022 on support from higher lithium prices.
As of 9:00 a.m. EST on Thursday (August 4), shares of Albemarle were trading at US$248.12, up more than 3 percent from the previous day's closing price.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Priscila Barrera, currently hold no direct investment interest in any company mentioned in this article.
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.