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Investing Guides
Significant Mineral Resource Upgrade At Cloud Nine Halloysite‐Kaolin Project 33% Increase To 280MT
November 28, 2022
Latin Resources Limited (ASX: LRS) (“Latin” or “the Company”) is pleased to announce the completion of the Company’s Mineral Resource update for the 100%‐owned Cloud Nine Halloysite‐Kaolin Deposit (“Cloud Nine”) in Western Australia. The Mineral Resource has been estimated and classified by a Competent Person and is reported here in accordance with the JORC Code (2012).
HIGHLIGHTS
- 33% Increase in global Mineral Resource Estimate to 280 Mt1 of kaolinised granite:
- 70 Mt upgraded from Inferred to Indicated
- 210Mt of Inferred Mineral Resource comprises
- 125 Mt of bright white kaolinite‐bearing material2
- 85 Mt of halloysite‐bearing material3
- Mineral Resource contains 116 Mt1 of bright white kaolinite‐bearing material in the Indicated and Inferred classifications reported to the <45 µm size fraction.
- The infill drill programme (207 air‐core holes) confirmed high‐grade halloysite (up to 58%).
- The Cloud Nine Project has substantial potential for future growth, with the mineralisation open in all directions.
- Bulk sample of kaolin material has been delivered to potential customers to advance offtake discussions.
PROJECT SUMMARY
The Cloud Nine deposit is located on the Company’s 100%‐owned exploration licence E77/2622, which is situated ~350 km to the east of Perth and to the southeast of the town of Merredin (Figure 1 and 3).
The Company controls a commanding regional tenement package (Noombenberry Project), covering over 560 km2 (Figure 2) of what the Company believes is the most prospective ground in the region to identify repetitions of the high‐grade Cloud Nine deposit.
MINERAL RESOURCE ESTIMATE UPDATE SUMMARY
The updated Mineral Resource for the Cloud Nine Deposit includes an in situ Indicated Mineral Resource of 70 Mt kaolinised granite at an average Brightness (“ISO‐B”) grade of 81 (Table 1). In addition to the Indicated Mineral Resource is an in situ Inferred Mineral Resource of 210 Mt kaolinised granite at an average ISO‐B grade of 79, for a total global in situ Indicated and Inferred Mineral Resource of 280 Mt, an increase of ~33% from the May 2021 global estimate of 207 Mt. The Inferred Mineral Resource includes an 85 Mt high‐grade (>3%) portion with an average halloysite grade of 4% (Table 1).
The Mineral Resource upgrade contains a total of 26.7 Mt of bright white kaolinised granite, classified as Indicated, with an ISO‐B grade of 81, reporting to the <45 µm size fraction. In addition, the global Mineral Resource contains 90 Mt kaolinised granite classified as Inferred, reporting to the <45 µm size fraction, with an average ISO‐B of 79. This domain also includes 35 Mt halloysite, averaging 10% halloysite, estimated using a 3% halloysite cut‐off and reported to the <45 µm size fraction (Table 2). The deposit contains low Fe contamination averaging 0.8% Fe2O3 (Table 3).
All Mineral Resources are reported to the <45 µm fraction at a cut‐off grade of 75 ISO‐B in accordance with Clause 49 of the JORC Code (2012).
NEXT STEPS
The Company will now enter into negotiation with potential offtake customers, which will include options to supply short‐term products, as well as supplying value‐added processed kaolin and halloysite products in the longer term.
Excavation of the recent test pit (Figure 2) has provided the Company with valuable information to further refine preliminary assumptions, including mining and stockpile designs, mining method and equipment selection and preliminary geotechnical assumptions. Material samples will also assist with further testing and analysis to continue improving the understanding of the deposit including the overlying material.
Click here for the full ASX Release
This article includes content from Latin 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.
LRS:AU
4h
Stardust Power
Stardust Power is developing a strategically centrally located lithium refinery with the capacity to produce 50,000 tons per annum of battery grade lithium carbonate. We enjoy a diversified supply of lithium from American brine sources. Our team is comprised of industry experts augmented by best in class technology partners and advisors. We are committed to sustainability at each point of the process.
10 January
Zijin Mining in Talks to Acquire Stake in US$6.4 Billion Chinese Lithium Miner
China's Zijin Mining Group (OTC Pink:ZIJMF,SHA:601899) is reportedly in negotiations to acquire a potential controlling interest in Zangge Mining (SZSE:000408), a Chinese lithium producer.
According to Bloomberg, Zijin Mining is looking to purchase stakes from Zangge Mining’s two largest shareholders, Tibet Zangge Venture Capital and Ningbo Meishan Bonded Port Area Xinsha Hongyun Investment Management. Together, they control approximately 40 percent of Zangge Mining, which is valued at 46.6 billion yuan (US$6.4 billion).
Zangge Mining primarily produces potash for fertilizer, but derives around a third of its revenue from lithium extraction. Its lithium operations focus on salt lake brines in Qinghai, China’s mineral-rich western region.
Zangge Mining reported production of 9,278 metric tons of lithium carbonate in the first nine months of 2024.
Zijin Mining, a producer of copper and gold, has been expanding aggressively, with Chairman Chen Jinghe overseeing its transformation from a gold miner in Southeastern China to a global leader in resource extraction.
Acquiring a stake in Zangge Mining would boost Zijin Mining’s position in the lithium market while enhancing its control over the Julong copper project in Tibet, a joint venture between the two companies. Last year, they secured regulatory approval to increase Julong’s output to 350,000 metric tons per day, establishing it as China’s largest single copper mine.
Beyond China, Zijin Mining is also advancing lithium projects abroad.
The company plans to start lithium production in the Democratic Republic of Congo in 2026, although it has postponed the start of its Argentina and Tibet projects to 2025 due to weak lithium prices and permitting delays.
The company’s strategic plan aims for annual production capacity of up to 300,000 metric tons of lithium by 2028. While its current output is limited, the acquisition of Zangge Mining could accelerate its progress toward that target.
Discussions are ongoing and are subject to agreement terms, board approval and regulatory compliance.
Lithium industry M&A heating up
Zijin Mining’s interest in Zangge Mining is part of a trend toward lithium M&A activity.
Major players like Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) have also pursued acquisitions in the lithium space, evidenced by Rio’s US$6.7 billion agreement to acquire Arcadium Lithium (NYSE:ALTM,ASX:LTM) last year.
Lithium remains a critical component in the transition to clean energy, and companies like Zijin Mining are leveraging their expertise in resource development to capture market opportunities.
The lithium market has experienced significant volatility since late 2022, with prices plummeting nearly 90 percent from their peak. However, this downturn in the industry has created opportunities for acquisitions as producers seek to consolidate and optimize operations amid weaker financial conditions.
By expanding its lithium footprint, Zijin Mining is positioning itself to play a key role in the global energy transition.
Zijin Mining is expected to release more details on the potential acquisition in the coming months.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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07 January
Lithium Market Forecast: Top Trends for Lithium in 2025
After a tumultuous 2024 that saw lithium carbonate prices tumble 22 percent amid a global supply glut, analysts are predicting another year of volatility for the important battery metal.
Even so, some balance is expected to return — according to S&P Global, the lithium surplus is projected to narrow to 33,000 metric tons in 2025, down from 84,000 metric tons in 2024, as production cuts begin to temper excess supply.
Demand from the electric vehicle (EV) market remains a key driver, with China maintaining its dominance after record-breaking sales in late 2024. In North America, the EV sector will face uncertainty under the Trump administration.
As 2025 unfolds, the lithium sector will also have to navigate geopolitical tensions, including rising tariffs on Chinese EVs and escalating trade disputes that are reshaping global supply chains.
“The name of the game in lithium (in 2025) is oversupply. Excess production in places like Africa and China, coupled with softer EV sales, has absolutely hammered the lithium price both in 2023 and 2024. I wouldn't think we can dig ourselves out of this hole in 2025 despite reliably strong EV sales,” said Chris Berry, president of House Mountain Partners.
In his view, the next 12 months could be unpredictable in terms of lithium price activity.
“Lithium price volatility is a feature of the energy transition and not a bug,” he said. “You have a small but fast-growing market, opaque pricing, legislation designed to rapidly build critical infrastructure underpinned by lithium and other metals, and this is a recipe for boom-and-bust cycles demonstrated by extremely high and extremely low pricing.”
For Gerardo Del Real of Digest Publishing, seeing prices for lithium contract by 80 percent over the last two years evidences a bottoming in the lithium market and also serves as a strong signal.
“I think the fact that we're up some 7 percent to close the year in 2024 in the spot price leads me to believe that we're going to see a pretty robust rebound in 2025. I think that's going to extend to the producers that have obviously been affected by the lower prices, but also to the quality exploration companies,” Del Real said in December.
He believes contrarian investors with a mid to long-term outlook have a prime opportunity to re-enter the space.
Lithium market to see more balance in 2025
As mentioned, widespread lithium production cuts are expected to help bring the sector into balance in 2025.
William Adams, head of base metals research at Fastmarkets, told the Investing News Network (INN) via email that output cuts for the battery metal have already started inside and outside of China.
“We expect further cutbacks if prices do not recover soon in the new year. While we have seen some cuts, we are also seeing some producers continue with their expansion plans and some advanced junior miners ramp up production. So we are now in a situation where we are waiting for demand to catch up with production again," he said.
Adams and Fastmarkets expect to see lithium demand catch up to production in late 2025. However, he warned that refreshed demand is unlikely to push prices to previous highs set in 2022.
“We do not expect to see a return to the highs we saw in 2022, as there are more producers and mines around now and there has been a buildup of stocks along the supply chain, especially in China,” he said.
“This should prevent any actual shortage being seen in 2025, but stocks can be held in tight hands, and if the market senses a tighter market, then they may be encouraged to restock, which could lift prices. But the restart of idle capacity in such a case is likely to keep prices rises in check," Adams added.
Analysts at Benchmark Mineral Intelligence are taking a similar stance, with a slightly more optimistic tone.
“In 2025, prices are likely to remain fairly rangebound. This is because Benchmark forecasts a relatively balanced market next year in terms of supply and demand,” said Adam Megginson, senior analyst at the firm. He also referenced output reductions in Australia and China, noting that they may not be as impactful as some market watchers anticipate.
This past July, Albemarle (NYSE:ALB), announced plans to halve processing capacity in Australia and pause an expansion at its Kemerton plant amid the prolonged lithium price slump. One of the plant’s two processing trains will be placed on care and maintenance, while construction of a third train has been scrapped.
“These supply contractions are likely to be balanced by capacity expansions due to come online in China in 2025, as well as in African countries like Zimbabwe and Mali,” Megginson said.
“Expect supply from these other regions to play a bigger role in the market in 2025.”
Unpredictable geopolitical situation to impact sector
Geopolitics is likely to play a key role in the lithium market this year, both directly and indirectly.
In 2024, the Biden administration raised tariffs on Chinese EVs to over 100 percent to counter alleged unfair trade practices, aiming to boost domestic production, but drawing criticism over potential supply chain disruptions.
Canada followed suit with similar 100 percent tariffs on Chinese EVs, as well as a 25 percent surcharge on Chinese steel and aluminum, citing the need to protect local industries. China has responded with World Trade Organization complaints against Canada and the US, along with the EU, labeling the measures protectionist.
Whether these tariffs against China will be enough to bolster the domestic North American EV market remains to be seen; however, the issue could become even more complicated if US President-elect Donald Trump makes good on his threats to levy tariffs on America's continental trade partners, Canada and Mexico.
Del Real doesn't expect US tariffs on critical minerals like lithium, but expressed concerns about a trade war.
“The bottom line is getting into a tit-for-tat with China is a dangerous proposition because of the leverage they have, especially in the commodity space, and so the tariffs are going to be passed down to consumers," he said. In his view, Trump's tariff threats could be more of a negotiating tactic than a sustained strategy.
More broadly, the experts INN heard from expect resource nationalism, near shoring and supply chain security to play prevalent roles in the lithium market and the critical minerals space as a whole.
“There's no doubt that lithium in particular has become politicized as policy makers across the globe have awoken from their slumber and realized that dependence on critical materials and supply chains in a single country is a bad idea for both economic and national security,” said Berry, noting that China had this realization decades ago.
“There is no easy fix, and you're looking at roughly a decade before any western countries have any sort of a regionalized or 'friend-shored' supply chain. Accelerating this would involve massive capital investment, patience and most importantly, political will. North America in particular has made great strides in recent years, but we have a long way to go. I'm not sure if fully decoupling from China is even a good idea," the battery metals expert added.
For Benchmark’s Megginson, 2025 could be a year of increased domestic development.
“We have seen several countries attempting to adopt some form of 'resource nationalism.' In some cases, this has been driven by wanting to onshore the production of critical minerals that are necessary for defense and nuclear applications. In others, it stems from a desire to be more self-sufficient so they can be more resilient to supply shocks.”
Proposed tariffs from Trump could also serve as a catalyst for US lithium output.
“With the incoming Trump administration, everyone has their eyes on how promises of increased tariffs will be implemented. Ultimately, heavier tariffs would accelerate efforts to onshore capacity in the US,” Megginson said.
“We may see the EU following suit with tariffs. There has been much said of the diversification of the lithium market away from China, but many of those efforts stalled in 2024 as the downswing in prices and a shifting geopolitical landscape made these endeavors more challenging," added the Benchmark senior analyst.
This nationalistic focus is also projected to impact refinement capacity and jurisdiction.
“While extracting the lithium from the ground has been successfully done in non-incumbent countries, such as in Brazil, Central Africa and Canada, with others expected to follow, the building of refining capacity has proved more difficult from a know-how and cost point of view, with a number of companies announcing that they are reining in some expansion plans, canceling some building projects or delaying decisions,” Adams of Fastmarkets said.
He went on to note that South Korea is an area to watch.
“Outside of China, South Korea has successfully ramped up new refining capacity, while Australia has had mixed results. The general issue is it’s hard to get the process right, and the CAPEX and OPEX outside of China means it is hard to be competitive. It will be interesting to see how Tesla’s (NASDAQ:TSLA) new Texas plant ramps up,” Adams noted.
Elsewhere, Adams pointed to the desire to secure supply chains. “Resource nationalism has also been an issue in some jurisdictions, with more countries now wanting processing capacity to be built in the country, and in order to force that they have banned the export of lithium-bearing ores. Zimbabwe a case in point,” he told INN.
Adams also pointed to Chile’s efforts to partially nationalize lithium producers, with the government mining company having controlling stakes in producers. “This could deter international investment in developing these mines,” he said. “In other metals, Indonesia has been very successful in playing the resource nationalism card.”
EV and ESS sectors to be key lithium price drivers
While the factors mentioned will undoubtedly impact the lithium industry in 2025, the market's most pronounced driver is the EV sector, and to a lesser extent the energy storage system (ESS) space.
“Demand for lithium-ion batteries is set to continue to grow rapidly in 2025. Benchmark forecasts that EV and ESS-related demand for lithium will both increase by over 30 percent year-on-year in 2025,” said Megginson.
To satiate this uptick in demand, “additional volumes of lithium will need to come to market.”
Megginson also noted that robust ESS demand is a positive demand signal for lithium-iron-phosphate (LFP) cathode chemistries, but is unlikely to outweigh the mounting EV demand in China.
This sentiment was echoed by Berry of House Mountain Partners, who expects the EV and ESS sectors to continue dominating market share in terms of lithium end use. “EVs and ESS are roughly 80 percent of lithium demand, and this shows no signs of abating. Other lithium demand avenues will grow reliably at global GDP, but the future of lithium is tied to increasing proliferation of the lithium-ion battery,” he commented to INN.
Despite weak EV sales in Europe and North America in 2024, Fastmarkets’ Adams expects to see a recovery in demand from these regions, paired with strong sales in China. The dip in European sales, particularly in Germany after subsidy cuts in early 2024, mirrors China’s 2019 slowdown following subsidy reductions. However, as with China, the decline appears temporary, with a recovery expected as stricter emissions penalties take effect in Europe in 2025.
Additionally, Adams pointed to the growing adoption of extended-range EVs, which address range anxiety and use larger batteries than plug-in hybrid EVs, as a catalyst for lithium demand.
However, he noted that the outlook for EVs in the US remains uncertain as Trump takes the helm.
“ESS demand has been particularly strong, especially in China, and we expect that to continue as the need to build renewable energy generation capacity is ever present and has a wide footprint. For example, ESS buildout in India is strong, whereas demand for EVs is less strong, but again it is strong for 2/3 wheelers," said Adams. He added that low prices for battery raw materials have lowered prices for lithium-ion batteries, benefiting ESS projects.
Ultimately the lithium market is expected to see volatility in 2025, but could also present opportunities.
"I can see a 100 to 150 percent rebound in the lithium spot price easily in 2025. And again, I think there's a lot of opportunity there,” Del Real of Digest Publishing emphasized to INN.
For Megginson, the sector will be shaped by geopolitics and relations moving forward.
“Policy will have a huge role to play in driving price trends in 2025," he said.
"For instance, there remains uncertainty around how the tariffs promised by an incoming Trump administration in the US would be implemented, and how they could reshape the global lithium landscape."
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.
Editorial Disclosure: Beyond Lithium and Grid Battery Metals are clients of the Investing News Network. This article is not paid-for content.
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.
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06 January
Electrification, Supply Chain Targets Drive Interest in Nevada’s Lithium Potential
As the global push for clean energy intensifies, lithium has emerged as a critical component in the transition away from fossil fuels.
While it’s long been known for its gold deposits, Nevada is now emerging at the forefront of North America’s clean energy transition. With significant lithium resources, Nevada could reshape the energy landscape and provide lucrative opportunities for savvy investors.
Metal of the future
As the key ingredient in lithium-ion batteries, lithium has an important role to play in the global energy transition. It powers everything from smartphones to electric vehicles (EVs) and grid-scale energy storage systems. The demand for lithium is skyrocketing, with projections indicating a potential 25 fold increase in demand from the EV sector alone by 2030.
This surge in demand is creating a significant supply gap. Current production levels are struggling to keep pace, with some analysts predicting a quadrupling of overall lithium demand by the end of the decade. The need for secure and sustainable lithium sources has never been more critical, placing Nevada in a prime position to capitalize on this growing market.
Home to Thacker Pass, the largest-known lithium deposit in the US, Nevada currently hosts the only producing lithium mine in North America.
Nevada's geological makeup is uniquely suited for lithium production. The state boasts vast deposits of lithium-rich brines and clays, formed through diverse geological processes over millions of years. This natural abundance, coupled with Nevada's mining-friendly policies and robust infrastructure, makes it an ideal location for lithium exploration and extraction.
The state's long history with critical minerals adds another layer of advantage. Nevada's experienced workforce and established supply chains provide a solid foundation for the burgeoning lithium industry. As the US seeks to secure its supply of critical minerals, Nevada's lithium resources have become increasingly strategic.
Domestic production: A national priority
The importance of domestic lithium production extends beyond economic benefits. It's a matter of national security and energy independence. By reducing reliance on foreign lithium sources, particularly from countries like China that currently dominate the market, the US can strengthen its position in the global clean energy race.
The federal government has recognized this imperative, designating lithium as essential to economic and national security. Various initiatives and funding programs have been launched to support domestic lithium production and processing. These efforts not only bolster the industry but also create a favorable environment for investors looking to capitalize on this growing sector.
GMV Minerals: Striking lithium gold
Among the companies at the forefront of Nevada's lithium boom is GMV Minerals (TSXV:GMV).
The company’s move to acquire the Daisy Creek project in Lander County, Nevada, through a three year option agreement, catalyzed its strategic entry into the lithium market. Covering approximately 1,250 hectares, the Daisy Creek project has shown promising results in initial drilling programs.
GMV Minerals has reported intersecting two substantial layers of lithium-rich claystone, indicating significant mineralization potential. Early exploration results suggest considerable tonnages can be inferred from drill holes, paving the way for further exploration and development.
The company has commenced a detailed drilling program to evaluate and expand the lithium resources at Daisy Creek. Preliminary results from four drill holes have shown encouraging signs of high-grade lithium claystone mineralization, reinforcing the project's potential as a significant contributor to lithium supply.
Dual focus: Mitigating risk, maximizing opportunity
What sets GMV Minerals apart is its dual focus on gold in Arizona and lithium in Nevada.
This strategic approach allows the company to mitigate risks associated with commodity price fluctuations while tapping into emerging market demands. For investors, this multi-commodity exploration strategy offers enhanced growth opportunities and the potential for optimized operational efficiencies.
By leveraging its expertise in gold mining, GMV Minerals is well-positioned to navigate the complexities of the emerging lithium market effectively. This diversification strategy aligns with broader market dynamics, appealing to forward-looking investors seeking exposure to both traditional and future-focused commodities.
Challenges and opportunities
While the future of lithium in Nevada looks bright, it's not without challenges.
Environmental concerns regarding mining practices and water usage in the arid state need to be addressed. Local communities may express reservations about the operational impacts on their environment and water supply.
However, these challenges are balanced by significant opportunities. Nevada's comprehensive lithium supply chain, encompassing all phases from mining to recycling, positions it as a crucial player in the global market. The state's strategic initiatives and government support could inspire sustainable practices while promoting economic development.
Forecasts suggest substantial growth in the lithium market, with Nevada poised to capitalize on this trend. If current projections hold, the global lithium-ion battery market could surge from $21.95 billion in 2020 to $115 billion by 2030. This growth trajectory presents a compelling case for investment in Nevada's lithium industry.
Investor takeaway
Nevada's lithium resources represent a compelling opportunity for investors looking to participate in the clean energy revolution. With its geological advantages, supportive policies and strategic importance to US energy independence, the state is well positioned to become a global leader in lithium production.
Companies like GMV Minerals, with their strategic approach to multi-commodity exploration, offer investors a unique entry point into this burgeoning market. As the demand for lithium continues to soar, driven by the rapid adoption of EVs and renewable energy technologies, Nevada's lithium industry stands ready to power the future — and potentially deliver significant returns for astute investors.
This INNSpired article is sponsored by GMV Minerals (TSXV:GMV,OTCQB:GMVMF). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by GMV Mineralsin order to help investors learn more about the company. GMV Minerals is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with GMV Minerals and seek advice from a qualified investment advisor.
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05 January
Full HMW Phase 2 (21Ktpa LCE) Mining Permit Granted
Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce that the Catamarca Ministro – Ministerio de Mineria (Mines Department Minister) has granted Galan the full Phase 2 mining permit for 21ktpa LCE production at its 100% owned HMW lithium brine project in Argentina. The grant of the permit means Galan has the ability to expand production up to 21ktpa LCE, subject to securing project finance and following the delivery of Phase 1 (up to 5.4ktpa LCE).
Highlights
- Phase 2 Hombre Muerto West (HMW) mining permit has been granted, securing the pathway for Galan’s continued development at HMW at an efficient commercial scale up to 21,000 tpa LCE
- The granted permit includes all construction activities including ponds, plant, onsite laboratory, power and other required infrastructure
- HMW Phase 2 production would be cash flow positive at today’s lithium carbonate prices. Independent benchmarking highlights HMW as being within the first quartile of the lithium industry AISC cost curve
- The granting of Phase 2 permits supports Galan’s application for the RIGI, Argentina’s new incentive regime for large scale investments
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“We are delighted with the grant of the Phase 2 mining permit which continues to solidify our strong relationship with the local Catamarcan authorities. It will allow Galan to increase production over threefold from Phase 1 and produce a premium quality lithium chloride product, which is in high demand.
Importantly, HMW is positioned in the first quartile of the cost curve and Phase 2 production would be cash flow positive even at today’s prevailing lithium carbonate prices. HMW is now poised to be a long term and resilient globally significant source of lithium supply.”
Figure 1. Wood Mackenzie 2028 Lithium Cost Curve: AISC (US$/t LCE)Wood Mackenzie Disclaimer “The foregoing information was obtained from the Lithium Cost Service™ a product of Wood Mackenzie.” "The data and information provided by Wood Mackenzie should not be interpreted as advice and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by Wood Mackenzie in writing. To the fullest extent permitted by law, Wood Mackenzie accepts no responsibility for your use of this data and information except as specified in a written agreement you have entered into with Wood Mackenzie for the provision of such of such data and information." Information sourced in December 2024.
Wood Mackenzie’s emissions benchmarking service has also placed HMW within the first quartile of the industry greenhouse gas emissions curve. Strong environmental, social and governance principles have been a governing tenet of the development strategy for HMW, which focuses on the production of a lithium chloride concentrate from conventional evaporation allowing for significantly reduced energy and water consumption. In line with Galan’s commitment to social principles, at least 70% local content in employment and contracting opportunities has been targeted at HMW and remains a keen focus for the Government of Catamarca and Galan. Skills and training opportunities have been provided to increase local participation, with a view to creating a skilled local workforce and supply chain for sustainable long-term operations.
Galan has demonstrated considerable progress on the HMW project, including:
- 2019: Discovery well drilled, marking the inception of the HMW project.
- 2020-2024: Mineral Resource established and expanded, now ranked as a global Top 20 lithium resource.
- 2023: Completion of Phase 1 and Phase 2 Definitive Feasibility Studies (DFS), validating the project's technical and economic viability (https://wcsecure.weblink.com.au/pdf/GLN/02720109.pdf).
- 2023: Secured all required approvals for Phase 1 construction and commenced construction.
- 2024: Continued construction and built a lithium inventory in the ponds of over 6,000 tonnes LCE.
- 2025: Full mining permit for Phase 2 granted, securing the pathway for continued development.
Chairman of Galan, Richard Homsany, commented:
“The grant of the Phase 2 mining permit is testament to the hard work and commitment of our dedicated team, and also highlights the strong long-term relationships we have fostered with the Government of Catamarca and local communities, who we sincerely thank for their continued ongoing support. Through action we have demonstrated the benefits of our HMW operations: economically though the generation of employment, procurement and trade opportunities and socially through education, community programs and training opportunities. We look forward to continuing to work in co-operation with the Government of Catamarca and all stakeholders to maximise the benefits of Galan’s operations in the community, and ensure they are sustainable.”
The HMW project is separated into four production phases. The Phase 1 DFS is based on the production of 5.4ktpa LCE of lithium chloride concentrate, with production anticipated in the second half of 2025.
The Phase 2 DFS, announced on 3 October 2023, targets medium-term production of 21ktpa LCE of lithium chloride concentrate. Arcadium Lithium Plc, which is subject to a change of control transaction from Rio Tinto Limited, produced around 20ktpa LCE from the adjacent mining permit at Salar de Hombre Muerto in 2023.
Phase 3 at HMW aims to achieve 40ktpa LCE within a 2-5 year horizon whilst Phase 4 represents a longer-term target of 60ktpa LCE, leveraging lithium brine sourced from both HMW and Galan’s other 100%-owned project in Argentina, Candelas.
The phased development of the HMW and Candelas Mineral Resources mitigates funding and execution risk and allows for continuous process improvement. The production of lithium chloride as a product is in demand from lithium converters as battery chemistry is trending towards lithium iron phosphate technology. Galan received permission to sell lithium chloride from the Catamarca Government earlier in 2024.
The Phase 2 mining permit also supports Galan’s application for the Argentinian Régimen de Incentivo para Grandes Inversiones (RIGI). Subject to meeting the eligibility criteria for RIGI, the RIGI can provide the following key incentives:
- The corporate income tax rate is set at 25% (ordinarily 35%)
- Accelerated depreciation
- Absence of time limits in the computation of tax loss carry forwards
- Concessions on import duty, VAT and withholding tax
- Greater flexibility on foreign exchange movements
- Fiscal stability for a period of 30 years
Galan’s JP Vargas de la Vega further stated:
“Our plan for HMW is unchanged, beginning with Phase 1. Our immediate focus is finalising the financing and offtake arrangements for Phase 1. Once secured, our operations team will complete construction and commence first production of lithium chloride concentrate. While the operations team advances Phase 1 construction our corporate team, supported by advisors, will commence a project financing process for Phase 2.”
Click here for the full ASX Release
This article includes content from Galan 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.
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03 January
6 Best-performing Lithium Stocks of 2024
Global lithium stocks and the overall lithium marketfaced a turbulent 2024, marked by oversupply, softer-than-expected electric vehicle (EV) demand and geopolitical tensions that reshaped the industry.
Prices for lithium carbonate plummeted 22 percent, driven by a supply glut and weaker demand outside of China.
Amid this challenging landscape, mergers and acquisitions surged. The year started out with the completion of Livent and Allkem's merger, which birthed Arcadium Lithium (NYSE:ALTM,ASX:LTM). Then, in October, major diversified miner Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) announced plans to acquire Arcadium.
Meanwhile, EV demand rebounded late in the year, led by record sales in China.
Even against this tumultuous backdrop, some lithium stocks listed in Canada and Australia performed strongly. Below the Investing News Network has gathered the top gainers year-to-date using TradingView’s stock screener. All lithium stocks listed had market caps above $50 million in their respective currencies when data was gathered.
Data for Canadian stocks was collected on December 27, 2024, and data for Australian stocks was gathered on December 31, 2024. While US lithium companies were considered, none were up year-to-date at the time data was collected.
1. Q2 Metals (TSXV:QTWO)
Year-to-date gain: 220 percent
Market cap: C$106.11 million
Share price: C$0.80
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.
In 2024, Q2 Metals 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. The news caused its share price to skyrocket, reaching a Q1 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, the company announced the start of a summer drill program at the Cisco property. It has since released multiple progress updates, including the confirmation of eight new mineralized zones on July 8.
On October 1, Q2 Metals shared assays from the drill program at the Cisco site. The company's share price spiked on the news, ultimately climbing to an all-time high of C$1.48 on October 11.
“These assays continue to validate the potential and scale of the Cisco Property as that of a larger mineralized system,” said Neil McCallum, vice president of 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.”
By the end of the Cisco drill program, the company had drilled 17 holes covering 6,360 meters in total. Q2 Metals released the final results from the campaign on December 17.
As of mid-December, Q2 Metals had the exclusive right to acquire a 100 percent interest in 545 additional mineral claims, which would triple its land position at the Cisco lithium property. The new claims, located south of the original property, enhance prospects for development and future mining infrastructure.
2. Power Metals (TSXV:PWM)
Year-to-date gains: 73.08 percent
Market cap: C$67.57 million
Share price: C$0.45
Exploration company Power Metals holds a portfolio of diversified assets in Ontario and Québec, Canada.
In late February, Power Metals commenced a winter drill program at its Case Lake property in Northeastern Ontario. The company said the program was designed to expand and define lithium-cesium-tantalum mineralization, building on previous work that revealed high-grade lithium and cesium mineralization.
Company shares rose to an H1 high of C$0.47 at the end of March. The increase coincided with the news that Power Metals had staked the 7,000 hectare Pelletier project, consisting of 337 mineral claims in Northeast Ontario.
According to the company, the project features lithium-cesium-tantalum potential, with peraluminous S-type pegmatitic granites intruding into metasedimentary and amphibolite formations.
During the fourth quarter, Power Metals identified a new pegmatite zone at Case Lake through soil sampling. The samples from the zone, located north-northwest of its West Joe prospect, revealed elevated levels of cesium, tantalum, lithium and rubidium, highlighting promising drill targets for the winter program.
The company also launched a Phase 2 drone magnetic survey that is geared at refining its structural model for critical minerals targets at West Joe and the Main zone ahead of 2025 exploration efforts.
In a December 10 exploration update, Power Metals said its partner Black Diamond Drilling, a First Nations-owned drilling company, had completed 16 drill holes for 971 meters of the planned 2,000 meter program. Environmental studies were also ongoing. Shares rose over the following week to a year-to-date high of C$0.49 on December 16.
3. Lithium Chile (TSXV:LITH)
Year-to-date gains: 45.28 percent
Market cap: C$163 million
Share price: C$0.77
South America-focused Lithium Chile owns several lithium land packages in Chile and Argentina.
On April 9, the company announced a 24 percent increase in the resource estimate for its Arizaro property in Argentina. The new total for the project is 4.12 million metric tons (MT) of lithium carbonate equivalent, with 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 Arizaro project, the company highlighted that a drill hole had encountered "a brine-rich, sandy formation encountered from 161 to 500-metres."
In an August announcement, Lithium Chile noted that the spinout of Lithium Chile 2.0 was reliant on finalizing a strategic deal for Arizaro. As for Kairos Gold, its spinout was effective on December 4.
In mid-December, Lithium Chile penned a letter of intent to sell its 80 percent stake in Arizaro.
The company said the buyer “is a large, Asian based company founded over two decades ago (and) a diversified enterprise with significant interests in mining, renewable energy, and technology sectors.”
The move to sell its flagship asset signals a strategic realignment for Lithium Chile. Although company shares reached a year-to-date high of C$0.88 in March, the recent sale news has pushed shares to the C$0.80 level.
1. Vulcan Energy Resources (ASX:VUL)
Year-to-date gain: 84.48 percent
Market cap: AU$1.19 billion
Share price: AU$5.35
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 utilizing a proprietary alumina-based adsorbent-type direct lithium extraction (DLE) 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 optimization plant in Germany. According to the company, the milestone marks the first lithium chemical production in Europe using local supply. The plant has consistently exhibited over 90 percent lithium extraction efficiency.
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 Q3, Vulcan received its first licenses for lithium and geothermal exploration in Alsace, France. The permits cover 463 square kilometers, expanding Vulcan's total licensed area in the Upper Rhine Valley to 2,234 square kilometers.
In early August, Vulcan began commissioning its downstream lithium hydroxide optimization plant (CLEOP) near Frankfurt, Germany, which will process the lithium chloride concentrate from its DLE plant.
A mid-October release from Vulcan outlines 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.
Also in October, the company earned S&P Global’s highest "dark green" sustainability rating, a first for the mining sector, under its Green Financing Framework. On November 8, Vulcan announced it had commenced lithium hydroxide production at CLEOP. The milestone coincided with an AU$162 million funding infusion from Germany’s Federal Ministry of Economics and Climate Protection and the European Recovery and Resilience Facility.
To end the year, Vulcan announced the signing of a AU$1.45 billion conditional debt commitment letter with Export Finance Australia and a group of seven commercial banks.
2. Ioneer (ASX:INR)
Year-to-date gain: 6.67 percent
Market cap: AU$353.35 million
Share price: AU$0.16
Australia-listed Ioneer owns the Rhyolite Ridge lithium-boron project in Nevada, US. According to the company, the project is considered the “sole lithium-boron deposit in North America.”
As part of the permitting process for Rhyolite Ridge, Ioneer completed and submitted an 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 had published the final EIS, moving the company closer to construction.
The comprehensive review process addressed environmental concerns, particularly regarding the protection of the endangered Tiehm's buckwheat plant found at the site. Ioneer has committed to measures aimed at safeguarding the plant's habitat. In October, Ioneer secured final federal approval for Rhyolite Ridge.
The project became the first US lithium mine authorized under the Biden administration.
Rhyolite Ridge is projected to produce sufficient lithium for approximately 370,000 EV batteries annually. Construction is slated to commence in 2025, with production expected by 2028.
3. Prospect Resources (ASX:PSC)
Year-to-date gain: 2.25 percent
Market cap: AU$52.03 million
Share price: AU$0.09
Africa-focused explorer Prospect Resources holds a diversified portfolio of assets in Zimbabwe, Zambia and Namibia. The company’s lithium prospects, Omaruru and Step Aside, are in Namibia and Zimbabwe, respectively.
In late June, Prospect released an update on its exploration activities, reporting strong assay results from Phase 4 diamond drilling at the Step Aside lithium project in Zimbabwe and follow-up Phase 2 drilling at the Omaruru lithium project. Managing Director Sam Hosack highlighted the significant mineralization potential at both projects.
Moving forward, Prospect plans to slow down spending at its lithium projects as it turns to its newly acquired Mumbezhi copper project in Zambia. The company believes it can monetize Step Aside in the near term to aid in this goal.
In its June quarterly results, Prospect noted the completion of drilling and fieldwork for a Phase 4 diamond drilling program at the Step Aside lithium project in Zimbabwe, with no further exploration planned.
The project is being prepared for sale to help fund the Mumbezhi copper project.
Meanwhile, Phase 2 drilling at the Omaruru lithium project is complete, and the company has reduced spending to holding costs as its focus shifts to the Mumbezhi project.
In its September quarterly report, Prospect said it was discontinuing its Bikita Gem earn-in project in Southeastern Zimbabwe after drilling results failed to identify economically viable volumes of petalite-rich lithium mineralization.
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.
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