It’s the most enduring thematic of our times, and now investors can get exposure at a significantly lower price thanks to the recent impact of rising rates and global strife.
Lithium stocks already showing first signs of recovery while Boss prepares for FID as uranium outlook charges up.
The global decarbonisation thematic is none too worried about the shakedown in equity markets over China’s slowdown and the impact of rising inflation/interest rates in the major economies.
The thematic is alive and well. And it’s here to stay for decades to come as governments and companies alike combine forces to rein in global carbon emissions from the (renewable and sustainable) electrification of everything.
Pilbara Minerals has reinforced analysts’ bullish lithium predictions after securing a record price for 5000 dry metric tonnes of the critical battery raw material sold on its unique digital auction platform (reports The Australian Financial Review)
As investors digested several upbeat brokers notes on lithium stocks, Pilbara on Tuesday night revealed it had secured a price of $US5955 a dry metric tonne for a cargo of spodumene with 5.5 per cent lithia via its Battery Material Exchange platform.
Including freight costs to China, the price for its fifth auction on the platform equates to around $US6586 a dry metric tonne for spodumene concentrate with 6 per cent lithia.
Elon Musk wants to mine it, China is scouring Tibet for it, battery makers are crying out for it (reports Bloomberg).
Lithium, the wonder metal at the heart of the global shift to electric cars, is in a full-blown crisis. Demand has outstripped supply, pushing prices up almost 500% in a year and hindering the world’s most successful effort yet to halt global warming.
Lithium bulls looking for analyst support need not look much further than UBS, with the investment bank expecting demand more than double consensus numbers by 2030 (reports MiningNews).
Instead of 2-3 million tonnes per annum of lithium carbonate equivalent demand, UBS believes somewhere around 5.8Mt will be the more accurate number.
For two fundamental reasons.
One, EV penetration, with UBS seeing that number at 25% by 2025 and 54% by 2030.
And two, average battery size.
UBS claims to have "street leading views" on the subject, though it concedes its forecasts are not without risk.
The extract of the UBS report seen by MNN did not contain supply or price forecasts.
Two leading lights of the WA resources industry have emerged as major shareholders of battery minerals explorer Bellavista Resources (BVR), which makes its eagerly-awaited share market debut today (reports Stockhead).
Capricorn Resources (ASX: CMM) executive chairman Mark Clark and Bellevue Gold (ASX: BGL) managing director Steve Parsons have each acquired a 10 per cent stake in Bellavista while Capricorn CEO Kim Massey and Bellevue non-executive director, Michael Naylor, will each have a 6 per cent stake.
In addition to these high-profile shareholders, a number of globally significant institutions have invested and will own approximately 12 per cent of the company.
On listing, the top 20 shareholders will account for 59 per cent of the company.
Buy the dip theory took hold among Australian investors earlier week as they helped the all-ordinaries index claw back 200 of the 700 points lost since early April but by Thursday they discovered the meaning of “dead cat bounce”.
The net result was a week which ended not far from where it started, still down 600 points on a month ago.
Adding to concern that the market is struggling to overcome multiple negative forces that include rising interest rates, higher inflation and shortages caused by the Ukraine war is Saturday’s Federal election and the prospect of a new, and less business-friendly Australian Government, on Monday.
Bill Beament’s Develop Global has flagged a significant upgrade in the resource at its Sulphur Springs copper-zinc-silver project in the Pilbara following another batch of high-grade drilling intersections (reports The West Australian).
Develop unveiled a series of thick, high-grade intersections on Monday including 65.1 metres at 3.5 per cent copper equivalent from a $10m, 68-hole infill drilling program at the project near Marble Bar.
The company said the results would feed into a resource upgrade next quarter for Sulphur Springs, which already hosts a resource of 13.8 million tonnes at 2.8 per cent copper equivalent including 9.4Mt in the indicated category.
Mr Beament said the latest drilling results were even better than the company had anticipated.
Bill Beament, the driving force behind the Northern Star Resources (ASX:NST) juggernaut which generated such exceptional returns for shareholders, is returning to the Resources Rising Stars (RRS) Gold Coast investor conference with his new company Develop Global (ASX:DVP) (reports Stockhead).
Armed with two high-growth Australian battery metals projects and the mining contract for Bellevue Gold (ASX:BGL), Beament is heading to RRS next month to speak personally with investors.