6 Top Canadian Lithium Stocks of 2020

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Editor’s note — This list has been updated to include Cypress Development, which was up 68.42 percent year-to-date on July 8, but did not register when data for the article was gathered.

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 July 8, 2020 using TradingView‘s stock screener. Only companies with market caps above C$10 million are included.

1. American Lithium (TSXV:LI)

Current price: C$1.28; year-to-date gain: 924 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; in April, the company released positive results and it kicked off its second phase of drilling in June.

Shares of American Lithium are currently at their highest point so far this year at C$1.28. The company was requested by OTC Markets Group to provide commentary on promotional activity. American Lithium has 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. The company also released a no material changes statement on July 8.

2. Power Metals (TSXV:PWM)

Current price: C$0.31; year-to-date gain: 425 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. In May, the company staked an additional 107 cell claims to expand its Case Lake property. Following the announcement, shares of Power Metals continued to trend up, reaching their highest point of the year so far on May 11 at C$0.53.

3. Alpha Lithium (TSXV:ALLI)

Current price: C$0.97; year-to-date gain: 212.90 percent

Argentina-focused Alpha Lithium wholly owns the Tolillar Salar project in Salta province, and is another of the top Canadian lithium stocks. Early stage investigations in 2015 showed lithium concentrations of up to 504 milligrams per liter in borehole samples. 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 this year, Alpha Lithium has been trending upward in 2020. In early March, the company closed its acquisition of lithium assets in Salta, and in May it started a geophysics study at Tolillar. The company is currently trading at its highest point this year, and released a no material changes statement on June 19.

4. Lithium Americas (TSX:LAC)

Current price: C$7.06; year-to-date gain: 69.71 percent

Lithium Americas, together with Chinese top lithium producer Ganfeng Lithium (OTC Pink:GNENF,SZSE:002460), is developing the Caucharí-Olaroz project, located in Jujuy, Argentina. Production from the project was expected in early 2021, with output capacity estimated at 40,000 tonnes per year, but plans are being revised as the impact of the coronavirus continues to be assessed.

On March 19, construction activities at Caucharí-Olaroz were temporarily suspended following the declaration in Argentina of a country-wide mandatory quarantine in response to COVID-19. Limited activities were resumed mid-April, but the company had to activate its coronavirus protocol on July 6 after workers at the site tested positive.

In addition to Cauchari-Olaroz, Lithium Americas owns 100 percent of the Thacker Pass lithium claystone project in Nevada. With an initial Phase 1 capital cost of US$581 million, the project will have an annual production capacity of 60,000 tonnes per year.

After falling more than 25 percent in Q1, Lithium Americas’ share price has been trending upwards since the end of March, bouncing back from its lowest point of the year at C$3.10 to its current level of C$7.06.

5. Cypress Development (TSXV:CYP)

Current price: C$0.32; year-to-date gain: 68.42 percent

Exploration company Cypress Development is focused on developing its 100 percent-owned Clayton Valley lithium project in Nevada. The asset is located immediately east of Albemarle’s (NYSE:ALB) Silver Peak mine, which has been in continuous operation since 1966.

Like most other stocks this year, Cypress Development’s share price fell to its lowest level in March, trading at C$0.13. However, the stock has been on an upward trend since the beginning of Q2 on the back of company milestones.

On May 19, Cypress Development released a prefeasibility study for its Clayton Valley project. The study estimates an average production rate of 15,000 tonnes per day to produce 27,400 tonnes lithium carbonate equivalent  annually over a more than 40-year mine life. On July 2, the company released assay results, and since then its share price has continued moving higher.

6. Millennial Lithium (TSXV:ML)

Current price: C$1.26; year-to-date gain: 23.53 percent

The last of the top Canadian lithium stocks is Millennial Lithium. It is focused on the development of its flagship lithium brine project, Pastos Grandes, situated in the province of Salta, Argentina. The company is also developing another project in the lithium triangle — the Cauchari East project, which is next to Orocobre’s (TSX:ORL,ASX:ORE) Olaroz mine and Lithium Americas’ Cauchari-Olaroz project.

On June 23, the company received government approval for an environmental impact assessment for construction and operation at its Pastos Grandes project.

As with other stocks, Millennial Lithium felt the impact of COVID-19 in March, with its share price falling more than 30 percent by the end of that month. Since then, the company has been steadily recovering and it is now up more than 20 percent at C$1.26.

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