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Quarterly Activities Report – to 30 September 2024
Metals Australia Limited (“Metals Australia”, the “Company” or “MLS”) is pleased to report its activities for theQuarter ended 30 September 2024 (“Quarter”):
Corporate
- The Company’s cash balance at the end of the Quarter was $16.02 million (Q4 $17.35 million), following net outflows of $1.33M, which included $1.17M spent on exploration, metallurgical test work and project studies. Staffing, consultant and administration costs, offset by interest on fixed term deposits resulted in net outflow of $159 K for the quarter. Please see details in the Appendix 5b.
Highlights
- Commenced and completed phase 1 of an exploration campaign at the Corvette River Project in the James Bay region of Quebec Canada1. The program was aimed at advancing three highly prospective Gold, Silver and base metals projects – Felicie, West Eade and East Eade. Post quarter end the company announced results from the program, further enhancing the potential of the three project areas at a time when gold prices have reached all-time highs. Further work for a Phase 2 field program is being planned.
- Announced comprehensive exploration plans for three Critical and Precious metals projects in Australia2, representing the beginning of the most significant exploration period in the company’s history. The projects include Warambie in WA’s Pilbara region (prospective for Gold, base metals and Lithium), Big Bell North Gold in WA’s Murchison Region and the Warrego East Copper, Gold and Bismuth project in the NT.
- Launched the Warambie aircore drilling program in the Pilbara in September3, following receipt of approvals from the regulator and land holder and the award of a competitively bid drilling tender.
- Launched Gravity and Soil sampling programs at the Big Bell North Gold project in the Murchison3, which together with an extensive aeromagnetic survey, recently completed, represented the most significant exploration ever undertaken on the tenements. Post quarter end, the company announced significant drill targets had been identified and that a 4500m air core drilling program was contracted to begin.
- Significantly advanced its Lac Carheil Graphite project in Quebec, Canada4 – Provided a comprehensive update on the Metallurgical test work program, the design of the Process Flow Sheet for the Flake graphite concentrates plant and the prefeasibility study during the quarter. Significant time was spent in Canada by the CEO, advancing the project with Government and key stakeholder groups. The Company also added to its project land bank, increasing the claims area held by more than 60%. The additional claims extend ground holdings on identified graphite trends as well as land provisioning for the placement of project infrastructure.
- In addition to the above work, the release of the Canadian Federal Governments Critical Minerals Strategy Annual Report 20245 during the quarter further highlighted the significance of our Lac Carheil Graphite project. The growing urgency to develop domestic supplies of graphite, including 5 graphite mines and CSPG refineries, is directly connected to the over 200 GWH of committed battery manufacturing plants in Canada. Four plants are progressing, including one in Quebec (Northvolt) and three in Ontario.
Canadian Projects:
Lac Carheil Graphite – Critical Minerals Project, Quebec, Canada:
During the Quarter the Company applied significant effort to the advancement of its flagship Critical Minerals project. Significant progress was made in key areas4, including metallurgical test work, design of flake graphite concentrates plant process flow sheet and the prefeasibility study for the project. In parallel, considerable engagement was undertaken with government and key stakeholders in Canada and within Quebec. Engagement with government also resulted in submissions for grant funding – both in Canada and the USA, with further applications under development to support funding for the project. The land holding for the project was also extended by 62%, by pegging additional claims, including extensions of identified graphite trends and provision of land for project infrastructure placement. The company continues to advance consultation in support of its drilling permit application, for which an Impact Exploration Assessment was completed and submitted in alignment with new regulatory requirements in Quebec. Consultation discussions in support of the project, including drilling, continue in an open and productive manner with all stakeholders. Metals Australia is aligned with the Canadian and Quebec governments commitment to ensuring that indigenous communities benefit holistically from critical minerals projects.
Further, the Company notes the release of the Canadian Federal Governments Critical Minerals Strategy Annual Report, 20245 and the significance that report attaches to Critical Mineral projects such as ours. A link to the report is available on our website. Of note is the urgency with which Canada is progressing to secure supply of critical and strategic minerals for a rapidly advancing battery manufacturing base. The report notes the commitments of major battery and car manufacturers to rapidly progress the production of over 200 GWH of battery production capacity, annually. The report outlines the requirement for 5 graphite mines and 5 coated spherical purified graphite plants (CSPG) – all of which are required to help supply the capacity planned, in construction or already in operation. The environment for critical mineral project development in Canada and the USA is rapidly accelerating – which positions the Lac Carheil Graphite project as one of increasing significance, given its potential to be one of the largest, highest grade graphite projects in North America.
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This article includes content from Metals Australia Ltd, 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.
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Metals Australia
Overview
Metals Australia (ASX:MLS) is a mineral exploration company with a high-quality portfolio of advanced battery minerals and metals projects in Tier 1 mining jurisdictions of Western Australia and Canada. The portfolio comprises two critical minerals projects in Quebec, Canada — the Lac Carheil flake graphite project and the Corvette River lithium (and gold) project. The Australian portfolio comprises four projects: Tennant Creek (copper-gold) in the Northern Territory and Warrambie (lithium, nickel-copper, gold), Murchison (gold) and Manindi (lithium, vanadium-titanium, zinc) – all in Western Australia.
The push for net zero targets and the call from policymakers to transition to cleaner energy has intensified the focus on electric vehicles (EVs) and battery storage. The EV automakers and battery manufacturers, rely on essential materials such as graphite and metals, including lithium, nickel, copper and cobalt, to manufacture the batteries that are used in these vehicles and storage batteries generally. This has driven carmakers and battery manufacturers to partner with battery material suppliers under direct off-take agreements. Further, some automakers/battery manufacturers are buying equity stakes in miners, involving them directly in financing decisions for the development of mining projects. This is encouraging for companies such as Metals Australia as it actively advances its projects towards development.
Figure 2 – Graphite is a Critical Mineral required for the mass electrification of auto transportation.
Metals Australia is focused on progressing its flagship Lac Carheil flake graphite project in Quebec, Canada. The project is well-positioned to supply high quality graphite products, including battery-grade graphite to the North American market – including for lithium-ion and EV battery production in the future. The company announced positive sampling results across a 36-km strike length of identified graphite trends at Lac Carheil, including many values over 20% Cg and an exceptionally high-grade sample containing over 63% Cg. The company has planned a drilling program to test new high-grade zones identified from the sampling program, which will form the basis for upgrading the existing Lac Carheil Mineral Resource. An application for the drilling program is progressing with the Quebec regulator. Additionally, the company has recently commenced a Flake Graphite concentrate prefeasibility study with Lycopodium in Ontario and a downstream battery anode plant design with ANZAPLAN in Germany.
Metals Australia is also advancing its lithium, gold and silver exploration project at Corvette River, which is adjacent to Patriot Battery Metals’ world-class lithium project. Further, the company carries out aggressive exploration programs at its other projects, including Manindi, Warrambie & the Murchison in Western Australia and Tennant Creek in the Northern Territory region of Australia.
Metals Australia is well-funded to complete all its planned exploration and project studies. The cash position at the end of Q1 2024 was AU$17.86 million, which we note was higher than the company’s market capital at current share price. Metals Australia benefits from a team of professionals boasting extensive expertise in geology and mining. The appointment of experienced mining executive Paul Ferguson as the CEO is positive for the company. Since joining in January 2024, he has significantly advanced planning and preparation for the exploration, metallurgical test work programs, and design studies required to move its flagship Lac Carheil high-grade graphite project towards development. The Corvette Project has also completed exploration planning and is now fully permitted for drilling and trenching work during the northern hemisphere summer.
Company Highlights
- Metals Australia is rapidly advancing its flag ship Lac Carheil Graphite Project in Quebec, Canada. In addition, the company has a suite of high-quality exploration projects – including Lithium, Gold and Silver in Quebec, Canada and Lithium, Gold, Copper & Vanadium in Western Australia (WA) and the Northern Territory (NT).
- All projects are in Tier-1 mining jurisdictions (Canada and Australia) with world-class prospectivity and stable geo-politically.
- The company has six key exploration and development projects:
- two in Canada: the Lac Carheil high-grade flake graphite project and the Corvette River lithium and gold-silver-copper exploration project, and,
- four in Australia: Warrambie (lithium, nickel-copper, gold), Murchison (gold) and Manindi (lithium, vanadium-titanium, zinc-silver) in WA, and Tennant Creek (Warrego East copper-gold) in the NT.
- The focus is to rapidly advance its flagship Lac Carheil Graphite Project towards development. A drilling program is already contracted to substantially increase the existing JORC 2012 Mineral Resource of 13.3 Mt @ 11.5 percent graphitic carbon (Cg) and test the potential of the many other identified high-grade graphite trends.
- The 2020 Scoping Study on Lac Carheil based on the existing resource, representing only 1km of drilling out of the total 36kms of identified graphite trends, indicates a 14-year mine life with a production of 100,000 tons per annum and a pre-tax NPV @ 8 percent of US$123 million (~AUD$190 million).
- There are multiple catalysts at Lac Carheil in the near term including a pre-feasibility study (PFS) (underway), a scoping study on downstream battery (anode) - grade graphite production, and planned drilling aiming to at least double the resource as well as test other identified high-grade graphite trends.
- Furthermore, other projects in Canada including the Corvette River lithium and gold targets, and exploration in Australia at Manindi, Warrambie, Murchison and Warrego – are all seeing active progress.
- The company is well-funded to complete all its planned exploration and project studies. The cash position at the end of Q1 2024 was AU$17.86 million.
- Metals Australia is led by a seasoned board and management team possessing extensive mining sector experience and a proven track record of successful discoveries and project developments. With funding in place, the company is well-positioned to capitalise on growth prospects.
Key Projects
Canada
Lac Carheil Flake Graphite Project (MLS 100%)
Conceptual 3D Mining layout from February 2021 Scoping Study (Lac Carheil Project formerly named Lac Rainy Project)
The Lac Carheil Graphite Project is located in eastern Quebec, Canada, a tier 1 mining jurisdiction with access to excellent infrastructure, including hydroelectric power facilities. The project hosts an existing JORC 2012 mineral resource of 13.3 million tons (Mt) @ 11.5 percent graphitic carbon, which was announced in 2020 and a scoping study was completed and reported on in early 2021. Battery test work followed, in Germany, and this demonstrated the Lac Carheil Graphite concentrate could be shaped, purified, coated and used in battery applications with excellent results. Given the above work, the company carried out further field work, recently announcing exceptionally high-grade sampling results from 80 samples on 10 identified graphitic trends across the property. This included a sample containing 63 percent graphitic carbon, and 10 samples containing over 20% Cg. The average grade of the sampling was 11% Cg, which is comparable to the current high-grade resource. The combined strike length of the identified high-grade graphitic zones is over 36 kms. This compares to just 1 km of drilling on 1.6 kms of graphite trend that was utilised to obtain the existing resource. The potential for expanding and upgrading the existing resource remains enormous.
Figure 4 –Lac Carheil Graphite Project - Electromagnetic imagery outlining graphite trends and the resource
Additional drilling and development studies are either planned or are already underway, including a pre-feasibility study for a high grade Flake graphite concentrate product – which has commenced and a downstream purification options assessment and a scoping study for a battery anode facility in North America, which has been contracted. The company also announced it is contract ready for its planned drilling program and will fast-track the program as soon as permits are received from the Quebec regulator.
Corvette River Lithium Project (MLS 100%)
Corvette River Lithium, gold and silver Project is located in Quebec’s James Bay region Metals Australia recently announced that it is fully permitted to advance an extensive field exploration program across its holdings which include the wholly owned East Pontois, Felicie and West Pontois projects, situated within Patriot Battery Metals' (ASX:PMT) CV Lithium Trend, as well as tenements at West and East Eade in the company's parallel Corvette River South Trend. A field mapping and sampling program concluded last year and identified large, potentially lithium-bearing pegmatites immediately along strike from Patriot Battery Metals’ world-class lithium pegmatite discoveries. Additionally, the company has flagged significant gold and silver samples from its review of work previously completed across the field as is illustrated in the diagram below.Figure 5 – The Corvette Projects in the James Bay region of Canada. Prospective for Lithium, Gold & Silver
Australian Projects
Warrambie Project (MLS 80%)
The Warrambie project is located in the Pilbara region of Western Australia. It is 20 kms west of the Andover Lithium discovery (Azure Minerals (ASX:AZS). Metals Australia has completed geophysical surveys across the area and is identifying targets for further field exploration and drilling.
Warrego East Project (MLS 80%)
Metals Australia acquired the tenements as part of a package purchased from Payne Gully Gold in 2022. The company’s tenements include a granted exploration license (E32725) directly along strike to the east of the Warrego copper-gold deposit, which has a production of 1.45 Million Ounces of gold at 8 grams per tonne and over 90,000 tonnes of Copper at 2%. The Warrego mine operated from the late 1950’s through until 1989. It was found under sedimentary cover. The area and this land package is under detailed review utilizing available geophysical surveys. The company aims to identify further targets hidden under shallow sediment cover.
Big Bell North Project (MLS 80%)
The Murchison tenements were also acquired as part of the Payne Gully Gold transaction. Metals Australia owns exploration licenses at the Murchison gold project, which is adjacent to the >5 million ounces (Moz) Big Bell gold deposit. The company plans to conduct detailed magnetics and gravity surveys to test for extensions and repeats of high-grade gold deposits.
Manindi Project (MLS 80%)
The Manindi project is located in the Murchison District, approximately 500 kms northeast of Perth in Western Australia. The project comprises three mining leases and has an established high-grade zinc mineral resource. The metallurgical test work has located spodumene in samples from a high-grade lithium intersection of 12m @ 1.38 percent lithium oxide, including 3m @ 2.12 percent lithium oxide. The company also made a new vanadium-titanium discovery at the Manindi project.Management Team
Paul Ferguson – Chief Executive Officer
A Mining Engineer, Paul Ferguson has over three decades of experience in the resources and energy sectors across North America, Asia and Australia. He has extensive project development and operational experience working in Canada. He has worked in oil & gas major ExxonMobil across project stages, including feasibility, design, construction, and operation. He has worked in Executive level roles within Australia, including at GMA Garnet and held increasingly more senior roles with BHP (Iron Ore & Coking Coal) and then with Exxon Coal Minerals and Mobil Oil Australia during the early stages of his career.
Tanya Newby – CFO and Joint Company Secretary
Tanya Newby is a finance and governance professional with over 20 years experience in various corporate and commercial roles. She has a strong background in the resources sector and has provided financial advice and assistance to a number of publicly listed entities through exploration, project development through to the production stage. Tanya is a member of the Institute of Chartered Accountants, Member of the Governance Institute of Australia and a Graduate Member of the Institute of Company Directors.
Michael Muhling – Joint Company Secretary
Michael Muhling has over two decades of experience in the resources, including 15 years in senior roles with ASX-listed companies. He is a fellow of CPA Australia, The Chartered Governance Institute, and the Governance Institute of Australia.
John Dugdale – Technical Advisor
John Dugdale is a geologist with over 35 years of experience in the discovery and development of graphite, lithium, gold, nickel and copper projects. His corporate experience includes serving as a director and CEO of several junior resource companies focused on nickel-cobalt, graphite and copper-gold projects. Additionally, he has experience in funds management with Lion Selection Group.
Chris Ramsay – General Manager Geology
Chris Ramsay is a geologist and project manager with over 25 years of experience in the global mining industry. He has been involved in exploration, mine development and operations for mining projects in Australasia, Southeast Asia, and parts of Africa and North America.
Board
Michael Scivolo – Non-executive Chairman
Michael Scivolo has extensive accounting and taxation experience for corporate and non-corporate entities. He was a partner/director at a CPA firm until 2011 and has since been consulting in accounting and taxation. Scivolo is on the boards of several ASX-listed mining companies, including Sabre Resources, Golden Deeps and Tennant Minerals Ltd.
Alexander Biggs – Non-executive Director
Alexander Biggs has over 20 years of experience in the mining and engineering sector. During his career, he has been involved in various activities, including operations, consulting, finance and capital raising. He is currently the managing director of Lightning Minerals (ASX) and was previously the managing director of Critical Resources (ASX:CRR). Biggs is a member of the Australian Institute of Mining and Metallurgy and a graduate of the Western Australian School of Mines.
Rachelle Domansky – Non-executive Director
Rachelle Domansky is an ESG specialist and a consulting psychologist for businesses, governments and educational institutions in the Asia-Pacific region. In addition to Metals Australia, Rachelle holds non-executive board positions at Quebec Lithium and Access Plus WA Deaf.
Basil Conti – Non-executive Director
Basil Conti has been associated with the mining industry for over 25 years. He is a fellow of the Institute of Chartered Accountants Australia & NZ and was a partner/director of a chartered accounting firm in West Perth until 2015.
6 Best-performing Lithium Stocks of 2024
Lithium market surpluses continued to suppress prices and hinder sector growth throughout Q3 2024, broad consolidation early in the quarter signaled a potential bottoming out.
Subsequently analysts forecasted a price recovery as EV sales exceeded expectations in September.
Projected demand growth prompted Sprott Insights to warn of a potential lithium shortage emerging as early as 2025, with demand, especially from China, set to rise 20 percent annually.
Jacob White, an analyst at Sprott Insights, pointed to the future demand trends as a catalyst for lithium market investment.
“The lithium battery industry is projected to create US$400 billion in annual revenue opportunities worldwide,” he wrote. “The lithium production component of the chain has recorded margins as high as 65 percent, potentially making it a highly profitable sector.”
White continued, “Lithium miners, in particular, may be well positioned as they can give leverage to rebounding lithium prices. In contrast, non-vertically integrated lithium processing/refining companies may see their expenses rise.”
The list below was generated using TradingView’s stock screener, and data was gathered on October 18, 2024. While US lithium companies were considered for the list, none were up year-to-date at the time data was gathered. All lithium stocks had market caps above $10 million in their respective currencies when data was gathered.
1. Q2 Metals (TSXV:QTWO)
Year-to-date gain: 408 percent
Market cap: C$174.5 million
Share price: C$1.27
Exploration firm Q2 Metals is exploring its flagship Mia lithium property in the Eeyou Istchee James Bay region of Québec, Canada. The property contains the Mia trend, which spans over 10 kilometers. Also included in Q2 Metals' portfolio is the Stellar lithium property, comprised of 77 claims and located 6 kilometers north of the Mia property.
This year, Q2 Metals has also focused on exploring the Cisco lithium property, which is situated in the same region. On February 29, the company entered into three separate option agreements to gain a 100 percent interest in Cisco, news that caused its share price to skyrocket; it reached a year-to-date high of C$0.54 on March 4. Q2 Metals closed the acquisition of Cisco in June and now wholly owns the project.
In mid-May, Q2 Metals released re-assayed results from 2023 drilling conducted at Cisco by the property's vendors. The company used the analytical method it has applied to its Mia drill cores.
“We are pleased with the positive outcome of the re-analysis of the Cisco drill results,” said Q2 Metals Vice President of Exploration Neil McCallum. “A thorough review of the quality control measures has solidified that the new results are more accurate than the original results previously announced. It’s not an unexpected change as the analytical methods now used are more accurate at higher grades above roughly 1.5 percent Li2O and we have several samples above that range.”
Later that month, the company announced the start of a summer drill program at the Cisco property. It has since released multiple significant updates, including the confirmation of eight new mineralized zones on July 8.
Company shares rose to a year-to-date high of C$1.48 on October 10, shortly after Q2 released drill results and core assays from the Cisco property. As of October 1, 17 holes covering 6,360 meters in total have been drilled.
Additionally, each drill hole encountered pegmatite with visible signs of spodumene mineralization, a key lithium-bearing mineral.
“These assays continue to validate the potential and scale of the Cisco Property as that of a larger mineralized system,” said Neil McCallum, VP exploration. “One important observation of these results is the higher-grade nature of the larger mineralized system as we test and track the system progressing to the south.”
On the corporate side, Q2 announced a C$7.5 million private placement on July 10. The placement, which was divided into two tranches, was successfully closed on August 9, 2024.
2. Volt Lithium (TSXV:VLT)
Year-to-date gain: 78.26 percent
Market cap: C$57.44 million
Share price: C$0.41
Volt Lithium is a lithium development and technology company aiming to become a premier North American lithium producer utilizing its unique technology to extract lithium from oilfield brine.
Shares of Volt reached a year-to-date high of C$0.49 on September 26.
On April 29, Volt announced a strategic investment of US$1.5 million by an unnamed company operating in the Delaware Basin in West Texas. This investment is earmarked for the deployment of a field unit to produce lithium hydroxide monohydrate using Volt's proprietary direct lithium extraction technology.
The company's share price retreated in the second half of Q2, but July 17 news that Volt increased its processing capacity at its operations in Alberta, Canada, by 100 fold to 96,000 liters per day caused its price to shoot up more than C$0.08 during trading that day.
An August announcement from Volt highlighted the deployment and subsequent production scale up of Volt’s DLE technology in the Permian Basin. The field unit has the capacity to process 200,000 liters (1,250 barrels) of oilfield brine per day on location in West Texas.
3. Lithium Chile (TSXV:LITH)
Year-to-date gain: 30.19 percent
Market cap: C$140.03 million
Share price: C$0.69
South America-focused Lithium Chile owns several lithium land packages in Chile and Argentina. Presently, the explorer is working to delineate the deposit at its Salar de Arizaro property in Argentina.
On April 9, Lithium Chile announced a 24 percent increase in the resource estimate for Salar de Arizaro. The new total for the project is 4.12 million metric tons (MT) of lithium carbonate equivalent, categorized as follows: 261,000 MT in the measured category, 2.24 million MT in the indicated category and 1.62 million MT in the inferred category.
Not long after, on April 18, the company reported the creation of two wholly owned Canadian subsidiaries — Lithium Chile 2.0 and Kairos Gold — as part of a spinout to separate its Chilean and Argentinian assets.
Lithium Chile will retain its Argentinian lithium projects, and transfer its 111,978 hectares of Chilean lithium properties to Lithium Chile 2.0 and its portfolio of gold assets in Chile to Kairos Gold.
In a July operational update for the Salar de Arizaro project the company highlighted high grade intercepts from hole ARGENTO-06.
1. Ioneer (ASX:INR)
Year-to-date gain: 73.33 percent
Market cap: AU$572.84 million
Share price: AU$0.26
Australia-listed Ioneer owns the Rhyolite Ridge lithium-boron project in Nevada, US. The project is considered the “sole lithium-boron deposit in North America.”
As part of the permitting process for the Rhyolite Ridge project, Ioneer completed and submitted the administrative draft environmental impact statement (EIS) to the US Bureau of Land Management (BLM) in mid-January. In mid-September, Ioneer announced that the BLM published the final EIS, moving the company closer to building its Rhyolite Ridge lithium-boron project.
According to the company, the milestone now makes Rhyolite Ridge the first lithium project under the Biden Administration to reach the advanced stage of the environmental permitting process.
“Since Ioneer’s work at Rhyolite Ridge began in 2016, we have listened to members of the community and adapted our plans to maximize the project’s many economic benefits while minimizing indirect impacts to the community and environment. Rhyolite Ridge is stronger because of the extensive collaboration and input from all involved stakeholders,” said Bernard Rowe, managing director at Ioneer.
2. Vulcan Energy Resources (ASX:VUL)
Year-to-date gain: 63.45 percent
Market cap: AU$920.24 million
Share price: AU$4.74
Europe-focused Vulcan Energy Resources aims to support a carbon-neutral future by producing lithium and renewable energy from geothermal brine. The company is currently developing the Zero Carbon lithium project in Germany's Upper Rhine Valley. Vulcan is utilising a proprietary alumina-based adsorbent-type direct lithium extraction process to produce lithium with an end goal of supplying sustainable lithium for the European EV market.
On April 11, Vulcan announced the commencement of lithium chloride production at its lithium extraction optimisation plant in Germany. According to the company, the milestone marks the first lithium chemical production in Europe using local supply. The plant consistently exhibited over 90 percent lithium extraction efficiency.
Vulcan will now prepare the 40 million euro facility for commercial production. The company already has binding lithium offtake agreements in place with major automakers and battery manufacturers, and expects to supply enough lithium for 500,000 EVs during the first phase of production.
During the third quarter, Vulcan received its first licenses for lithium and geothermal exploration in Alsace, France. The permits cover 463 square kilometres, expanding Vulcan's total licensed area in the Upper Rhine Valley to 2,234 square kilometres across France and Germany.
In early August, Vulcan began commissioning its downstream lithium hydroxide optimisation plant (CLEOP) near Frankfurt.
“In the coming months, Vulcan will begin to transport the first LiCl parcels from our upstream facility through to CLEOP for production of the first battery-grade lithium hydroxide products in Europe, all from a European lithium resource,” Vulcan CEO and Managing Director Cris Moreno said.
A mid-October release from Vulcan outlined a memorandum of understanding with industrial software designer AVEVA. The partnership will see AVEVA build a digital framework for Vulcan’s Zero Carbon lithium project.
3. Cygnus (ASX:CY5)
Year-to-date gain: 3.7 percent
Market cap: AU$53.17 million
Share price: AU$0.14
Cygnus Metals is an exploration company focused on advancing its Pontax, Auclair and Sakami lithium projects in the Eeyou Istchee James Bay lithium district of Québec, Canada. The company also owns rare earth element, lithium and base metal projects in Western Australia.
In July, Cygnus reported the completion of geophysical survey work at the Auclair lithium project. The resulting data “identified significant potential for growth” in the Pegasus zone.
Most recently, Cygnus entered into an agreement to a merger of equals with Canadian copper company Doré Copper Mining (TSXV:DCMC,OTCQB:DRCMF), which owns several copper assets in Québec. The statement says the merger creates “a Québec-focused critical minerals explorer and developer with high-grade copper and lithium resources."
“By combining the proven exploration and management skills of the Cygnus team with the high-grade copper resources and immense upside potential at the Chibougamau properties, we have the potential to unlock substantial value,” said David Southam, Cygnus’ executive chairman.
FAQs for investing in lithium
How much lithium is on Earth?
While we don't know how much total lithium is on Earth, the US Geological Survey estimates that global reserves of lithium stand at 22 billion metric tons. Of that, 9.2 billion MT are located in Chile, and 5.7 billion MT are in Australia.
Where is lithium mined?
Lithium is mined throughout the world, but the two countries that produce the most are Australia and Chile. Australia's lithium comes from primarily hard-rock deposits, while Chile's comes from lithium brines. Chile is part of the Lithium Triangle alongside Argentina and Bolivia, although those two countries have a lower annual output.
Rounding out the top five lithium-producing countries behind Australia and Chile are China, Argentina and Brazil.
What is lithium used for?
Lithium has many uses, including the lithium-ion batteries that power electric vehicles, smartphones and other tech, as well as pharmaceuticals, ceramics, grease, lubricants and heat-resistant glass. Still, it is largely the electric vehicle industry that is boosting demand.
How to invest in lithium?
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.
Unlike many commodities, investors cannot physically hold lithium due to its dangerous properties.
How to buy lithium stocks?
Through the use of a broker or an investing service such as an app, investors can purchase lithium 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, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Lithium Universe Limited (ASX: LU7) – Trading Halt
Description
The securities of Lithium Universe Limited (‘LU7’) will be placed in trading halt at the request of LU7, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Tuesday, 29 October 2024 or when the announcement is released to the market.
ASX Compliance
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This article includes content from Lithium Universe, 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.
A$9 Million Equity Placing to Contribute to the Funding of the Ewoyaa Lithium Project
Atlantic Lithium Limited (AIM: ALL, ASX: A11, GSE: ALLGH, OTCQX: ALLIF, “Atlantic Lithium” or the “Company”), the Africa-focused lithium exploration and development company targeting the delivery of Ghana's first lithium mine, is pleased to announce the launch of an institutional placement (“Equity Placing”) of new fully paid ordinary shares of no par value each in the Company (“New Shares”) at an offer price of A$0.23 (equivalent to 11.73 pence) per New Share (“Issue Price”).
Highlights of the Equity Placing
- The Equity Placing will be undertaken by an institutional placement utilising the Company’s existing share authorities, launching today, to raise a minimum of A$9.0 million (£4.6 million/US$6.0 million). As part of the Equity Placing, the Company reserves the ability to accept oversubscriptions for up to A$3.0 million (£1.5 million/US$2.0 million).
- As part of the Equity Placing, the Company has received a signed commitment letter from Assore International Holdings Limited (“Assore”), the Company’s largest shareholder, to invest up to US$5 million (A$7.5 million/£3.9 million) through the purchase of up to 32,608,695 New Shares at the Issue Price (the “Assore Participation”).
- In addition, Executive Chairman Neil Herbert, Chief Executive Officer Keith Muller, and Non-executive Director Edward Koranteng, all Directors of the Company (the “Directors”), have provided an indication to invest up to A$290,000 in aggregate in the Equity Placing (the “Director Participation”). The Assore Participation and Director Participation are conditional on shareholder approval at the Company’s upcoming Annual General Meeting (“AGM”).
- Net proceeds from the Equity Placing will be used to contribute to funding the Company’s flagship Ewoyaa Lithium Project (“Ewoyaa” or the “Project”) in Ghana towards the Project Final Investment Decision (“Project FID”) and working capital requirements.
- The Equity Placing will be undertaken at a fixed issue price of A$0.23 (equivalent to 11.73 pence) per New Share, which represents a 11.5% discount to the last closing price of A$0.26 on 24 October 2024 on the ASX.
- Canaccord Genuity (Australia) Limited has been appointed as Lead Manager (“Lead Manager”) in connection with the Equity Placing. Wilsons Advisory & Stockbroking is acting as Co-Manager (“Co-Manager”).
Proposed Use of Proceeds
- Project Expenditure
- Optimisation and technical refinement of the Ewoyaa Definitive Feasibility Study (“DFS”);
- Expenditure related to advancing the Project through the remaining permitting activities to Project FID;
- Operational activities to achieve shovel readiness, including site preparation, relevant health and safety reports, the establishment of the Community Development Fund and the implementation of measures to manage and monitor Project impacts.
- Exploration
- Exploration of the highly prospective Rubino and Agboville licences in Côte d’Ivoire, as required under the terms of the licences.
- Working capital
- General working capital requirements.
Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:
“With significant recent progress made at Ewoyaa, despite having been impacted by the delay in the parliamentary ratification of the Mining Lease, this institutional Equity Placing will see the Company funded to advance the Project towards FID and shovel-readiness.
“Funds will be allocated towards the optimisation of the Ewoyaa DFS, the advancement of the Project through the key permitting and operational activities before we can break ground at the Project.
“We warmly welcome Assore’s commitment to participate in the Equity Placing. As a cornerstone investor in Atlantic Lithium since its AIM listing, Assore’s participation further underscores its belief in the Company achieving its goal of delivering spodumene concentrate production at Ewoyaa.
“Alongside CEO Keith Muller and Non-executive Director Edward Koranteng, I am proud to also be participating in the Equity Placing. As Directors, we believe in the importance of putting our money where our mouth is. We have done so on many occasions to date and, at such a pivotal moment for the Project, we are proud to take the opportunity to extend our belief in the Company’s ambitions.
“We look forward to the completion of the Equity Placing, which will facilitate our next steps towards delivering Ghana’s first lithium mine.”
Click here for the full ASX Release
This article includes content from Atlantic Lithium, 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.
Atlantic Lithium Limited (ASX: A11) – Trading Halt
Description
The securities of Atlantic Lithium Limited (‘A11’) will be placed in trading halt at the request of A11, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Monday, 28 October 2024 or when the announcement is released to the market.
Issued by
ASX Compliance
Click here for the full ASX Release
This article includes content from Atlantic Lithium, 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.
Quarterly Activities and Cash Flow Report for the quarter ended 30 September 2024
Atlantic Lithium secures key permits to advance flagship Ewoyaa Lithium Project towards full permitting
Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, “Atlantic Lithium” or the “Company”), the African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine, is pleased to announce its Quarterly Activities and Cash Flow Report for the period ended 30 September 2024.
Highlights
Project Development:
- Post-period end, significant progress made towards the permitting of the Company’s flagship Ewoyaa Lithium Project (“Ewoyaa” or “the Project”) in Ghana:
- Granted a Mine Operating Permit, representing the final regulatory approval required prior to commencing construction of the Project.
- Issued a Land Use Certificate, detailing the approval of the land within the Project’s Mining Area to be rezoned for mining purposes, as required prior to commencing construction and mining activities.
- Environmental Protection Agency (“EPA”) environmental permit granted in respect of the Project.
- Ewoyaa Mining Lease submitted to parliament to undergo the necessary ratification process.
- Completion of the Front-End Engineering Design (“FEED”) package for the Project, undertaken with DRA Projects.
Exploration:
- Ewoyaa Mineral Resource Estimate increased to 36.8Mt at 1.24% Li2O1, reported in accordance with the JORC Code (2012).
- Completion of baseline soil and stream sediment sampling across the Rubino and Agboville exploration licences in Côte d’Ivoire.
- Completion of soil geochemical sampling across the Senya Beraku prospecting licence area in the eastern portion of the Company’s Cape Coast Lithium Portfolio in Ghana.
Corporate:
- Ongoing delay of parliament’s ratification of the Ewoyaa Mining Lease combined with the subdued lithium market environment continues to impact Final Investment Decision timing, Minerals Income Investment Fund’s (“MIIF”) Project-level investment and the Company’s competitive offtake partnering process to secure funding to sufficiently cover the Company’s allocation of development expenditure for the Project.
- Cash on hand at end of quarter was A$7.5m.
Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:
“Important steps have been made over recent months in line with our efforts to advance Ewoyaa towards full permitting. Signifying the support of the Minerals Commission, the EPA and our local stakeholders, the grant of the EPA permit and Mine Operating Permit, respectively, represent critical approvals in the permitting process and major de- risking milestones for the Project.
“The delay in ratification has impacted the offiake process and MIIF’s investment already and has forced us to make cuts to staff numbers and expenditure across various non-essential departments. Nevertheless, we remain confident in our ability to drive the Project through these headwinds towards construction and operation. We now await the ratification of the Mining Lease by Ghana’s parliament, which will enable us to move the Project towards Project FID.
“The parliamentary process is playing out in the public domain as we speak, and we appreciate shareholders’ patience as these developments unfold. We are prepared for all eventualities and will update shareholders as appropriate. In the meantime, we are continuing activities within our control to advance the Project.
“We are also pleased to have reported an increase to the Ewoyaa Mineral Resource to 36.8Mt at 1.24% Li2O1 during the period. Despite the drilling programme being focused on supporting our mine build activities, we identified the Dog- Leg target, which contributed an additional circa 891,000 tonnes to the enlarged Resource1. We believe that Ewoyaa holds significant potential for further resource increases. Our current focus, however, remains firmly on bringing the Project to production, which we consider to be the greatest driver of value for shareholders.
“With significant milestones in the advancement of the Project ahead, the coming period is set to be hugely important for the Company.
“We look forward to providing further updates in due course.”
Click here for the full ASX Release
This article includes content from Atlantic Lithium, 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.
3 Best-performing ASX Lithium Stocks of 2024
Global demand for lithium-based power presents a significant opportunity for Australia, the top lithium-producing nation.
As countries and companies establish their positions in the battery value chain, Australia has the ability to leverage its strong output and vast reserves to shape the industry landscape into the 2030s.
The future of lithium demand relies heavily on the growth of the electric vehicle (EV) market, and in recent years its rapid expansion has led to much higher mining of the commodity — so much so that the market has entered a surplus.
This oversupply kept lithium prices subdued in the first half of 2024, but experts continue to forecast a bright long-term outlook for the essential battery material as countries around the world pursue net-zero goals.
Continued consolidation through Q3 2024 led many analysts to declare that the market bottomed in July. Late in the 90 day session the lithium market began to see some price growth amid better than expected September EV sales.
Here the Investing News Network looks at the top three ASX-listed lithium companies by year-to-date gains. The list below was generated using TradingView’s stock screener on October 18, 2024, and includes companies that had market caps above AU$10 million at that time. Read on to learn more about their activities over the past year.
1. Ioneer (ASX:INR)
Year-to-date gain: 73.33 percent
Market cap: AU$572.84 million
Share price: AU$0.26
Australia-listed Ioneer owns the Rhyolite Ridge lithium-boron project in Nevada, US. The project is considered the “sole lithium-boron deposit in North America.”
As part of the permitting process for the Rhyolite Ridge project, Ioneer completed and submitted the administrative draft environmental impact statement (EIS) to the US Bureau of Land Management (BLM) in mid-January. In mid-September, Ioneer announced that the BLM published the final EIS, moving the company closer to building its Rhyolite Ridge lithium-boron project.
According to the company, the milestone now makes Rhyolite Ridge the first lithium project under the Biden Administration to reach the advanced stage of the environmental permitting process.
“Since Ioneer’s work at Rhyolite Ridge began in 2016, we have listened to members of the community and adapted our plans to maximize the project’s many economic benefits while minimizing indirect impacts to the community and environment. Rhyolite Ridge is stronger because of the extensive collaboration and input from all involved stakeholders,” said Bernard Rowe, managing director at Ioneer.
2. Vulcan Energy Resources (ASX:VUL)
Year-to-date gain: 63.45 percent
Market cap: AU$920.24 million
Share price: AU$4.74
Europe-focused Vulcan Energy Resources aims to support a carbon-neutral future by producing lithium and renewable energy from geothermal brine. The company is currently developing the Zero Carbon lithium project in Germany's Upper Rhine Valley. Vulcan is utilising a proprietary alumina-based adsorbent-type direct lithium extraction process to produce lithium with an end goal of supplying sustainable lithium for the European EV market.
On April 11, Vulcan announced the commencement of lithium chloride production at its lithium extraction optimisation plant in Germany. According to the company, the milestone marks the first lithium chemical production in Europe using local supply. The plant consistently exhibited over 90 percent lithium extraction efficiency.
Vulcan will now prepare the 40 million euro facility for commercial production. The company already has binding lithium offtake agreements in place with major automakers and battery manufacturers, and expects to supply enough lithium for 500,000 EVs during the first phase of production.
During the third quarter, Vulcan received its first licenses for lithium and geothermal exploration in Alsace, France. The permits cover 463 square kilometres, expanding Vulcan's total licensed area in the Upper Rhine Valley to 2,234 square kilometres across France and Germany.
In early August, Vulcan began commissioning its downstream lithium hydroxide optimisation plant (CLEOP) near Frankfurt.
“In the coming months, Vulcan will begin to transport the first LiCl parcels from our upstream facility through to CLEOP for production of the first battery-grade lithium hydroxide products in Europe, all from a European lithium resource,” Vulcan CEO and Managing Director Cris Moreno said.
A mid-October release from Vulcan outlined a memorandum of understanding with industrial software designer AVEVA. The partnership will see AVEVA build a digital framework for Vulcan’s Zero Carbon lithium project.
3. Cygnus (ASX:CY5)
Year-to-date gain: 3.7 percent
Market cap: AU$53.17 million
Share price: AU$0.14
Cygnus Metals is an exploration company focused on advancing its Pontax, Auclair and Sakami lithium projects in the Eeyou Istchee James Bay lithium district of Québec, Canada. The company also owns rare earth element, lithium and base metal projects in Western Australia.
In July, Cygnus reported the completion of geophysical survey work at the Auclair lithium project. The resulting data “identified significant potential for growth” in the Pegasus zone.
Most recently, Cygnus entered into an agreement to a merger of equals with Canadian copper company Doré Copper Mining (TSXV:DCMC,OTCQB:DRCMF), which owns several copper assets in Québec. The statement says the merger creates “a Québec-focused critical minerals explorer and developer with high-grade copper and lithium resources."
“By combining the proven exploration and management skills of the Cygnus team with the high-grade copper resources and immense upside potential at the Chibougamau properties, we have the potential to unlock substantial value,” said David Southam, Cygnus’ executive chairman.
FAQs for investing in lithium
What is lithium?
Lithium is the lightest metal on the periodic table, and it is used in a wide variety of applications, including lithium-ion batteries, pharmaceuticals and industrial applications like glass and steel.
How do lithium-ion batteries work?
Rechargeable lithium-ion batteries work by using the flow of lithium ions in the battery's cell to power a device.
A lithium-ion battery has one or more cells, depending on the amount of energy storage it is capable of, and each cell has a positive electrode and negative electrode with an electrolyte separating them. When the battery is in use, lithium ions flow from the negative electrode to the positive electrode, running out of power once all have transferred. When the battery is charging, ions flow the opposite way.
Where is lithium mined?
Lithium is mined from two types of deposits, hard rock and evaporated brines. Most of the world's lithium production comes out of Australia, which hosts the Greenbushes hard-rock lithium mine. The next-largest producing country is Chile, which like Argentina and Bolivia is located in South America's Lithium Triangle.
Lithium in this famed area comes from evaporated brines, including the Salar de Atacama. Lithium can also be found in sedimentary deposits, but currently none are producing.
Where is lithium found in Australia?
Australia is the world’s top producer of lithium, and its lithium mines are all located in Western Australia except for one, which is Core Lithium’s (ASX:CXO,OTC Pink:CXOXF) Finniss mine in the Northern Territory. Western Australia accounts for around half of global lithium production, and the state is looking to become a hub for critical elements.
Who owns lithium mines in Australia?
Several companies own lithium mines in Australia, including some of the biggest ASX lithium stocks. In addition to the entities discussed above, others include: Pilbara Minerals (ASX:PLS,OTC Pink:PILBF) with its Pilgangoora operations; Arcadium Lithium with the Mount Cattlin mine; Jiangxi Ganfeng Lithium (HKEX:0358), which owns the Mount Marion mine alongside Mineral Resources (ASX:MIN,OTC Pink:MALRF); and Tianqi Lithium (SZSE:002466), which is a partial owner of Greenbushes via its stake in operator Talison Lithium.
Who is Australia’s largest lithium producer?
Australia’s largest lithium producer is Albemarle (NYSE:ALB), which has interests in both the Greenbushes and Wodgina hard-rock lithium mines. Greenbushes is the world’s largest lithium mine, and Albemarle holds 49 percent ownership of operator Talison Lithium’s parent company.
Albermarle also has 60 percent ownership of Mineral Resources’ Wodgina mine, and owns the Kemerton lithium production facility as part of a 60/40 joint venture with Mineral Resources.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Georgia Williams, currently hold no direct investment interest in any company mentioned in this article.
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