4 Top Canadian Lithium Stocks of 2020

Click here to read the previous top Canadian lithium stocks article.

Lithium’s popularity has been rising for several years due to the energy storage revolution.

Despite having a tough 2019, many market watchers are still optimistic about the future of the metal, with the demand narrative getting stronger every day. Lithium stocks had a good start to the year, but many have been under pressure since the coronavirus outbreak.

A few have been able to hold onto gains, and for investors interested in the lithium space, the Investing News Network has created an overview of the top Canadian lithium stocks on the TSX and the top Canadian lithium stocks on the TSXV with year-to-date gains. This list was generated on April 7, 2020 using TradingView. Only companies with market caps above C$10 million are included.

1. Power Metals (TSXV:PWM)

Current price: C$0.20; year-to-date gain: 233.33 percent

Battery metals explorer Power Metals is currently advancing its Case Lake lithium project in Northeastern Ontario. In addition to lithium, the project also holds tantalum and cesium.

This year, the company has decided to focus on cesium mineralization in the spodumene pegmatites at Case Lake. Following the announcement, shares of Power Metals started to trend up, reaching their highest point of the quarter on February 28 at C$0.28. Despite seeing a decline in early March as uncertainty hit the markets, the company’s share price has trended upward since the end of that month.

2. American Lithium (TSXV:LI)

Current price: C$0.19; year-to-date gain: 52 percent

Nevada-focused American Lithium is engaged in the acquisition, exploration and development of lithium projects. The company currently holds the Tonopah Lithium Claims project in Nevada. Aside from its lithium interest in Nevada, American Lithium is also exploring the Extinction Ridge vanadium project.

Samples from the company’s 2019 drill program assayed up to 2,285 parts per million (ppm) lithium, with numerous samples over 1,000 ppm lithium. A 2020 drill program started in February.

Shares of American Lithium hit their highest point in Q1 on February 29 at C$0.39. The company was requested by OTC Markets Group to provide commentary on some promotional activity. American Lithium attributed the increase in its share price to volatility in the North American capital markets and heightened interest in development-stage lithium projects — not promotional activities.

3. Alpha Lithium (TSXV:ALLI)

Current price: C$0.45; year-to-date gain: 46.77 percent

Argentina-focused Alpha Lithium holds 100 percent ownership of the Tolillar Salar project in Salta province. Early stage investigations have shown lithium concentrations up to 504 milligrams per liter in borehole samples in 2015. As of 2019, drilling licenses are approved for immediate start at the project, which is close to the Hombre Muerto Salar in the lithium triangle.

Aside from falling the day that markets hit their lowest trading point, Alpha Lithium has been trending upward in 2020. In early March, the company closed its acquisition of lithium assets in Salta, with its share price reaching C$0.50 on March 6.

4. Neo Lithium (TSXV:NLC)

Current price: C$0.54; year-to-date gain: 8 percent

Neo Lithium’s 3Q project is located in Catamarca Province, Argentina, in the lithium triangle. The company has obtained environmental permitting to complete exploration and a pilot plant, as well as an easement agreement to access the project for future construction at site. Neo Lithium is currently working on completing environmental permitting as part of a mine construction permit.

On February 13, the company’s share price hit its highest point of the quarter at C$0.89 after Neo Lithium provided an update on a strategic process to incorporate a partner for its wholly owned project, which has now entered the final stages of decision making. As with many other juniors, Neo Lithium’s share price was under pressure most of March, but it’s still slightly up year-to-date.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.