Broad assessment of Lithium producers including PLS
From market index
Mon 15 May 23,11:55am (AEST)
https://www.marketindex.com.au/news/which-asx-lithium-stock-offers-the-best-value?src=search-all
To start the seriesoff, we’re comparing ASX-listed hard rock players that have anexisting Mineral Resource Estimate (MRE).
Which lithium stock offers the bestvalue?
The table puts into perspective how much investors are paying fora tonne of lithium based on the company's resource and marketcapitalisation.
The graphis for illustrative purposes only and should not be used asinvestment advice (Source: Market Index)
X-Axis: How much you’re paying for a tonne of lithium based on the company’s market cap (aka market cap divided by resource)
Y-Axis: Lithium grade
Colour: Green (producer), blue (developer) and yellow (explorer)
Bubble size: Size of resource
Readers should also note the following points.
What's included in the data: The data uses the latest MRE and only includes Measured and Indicated Resource
Converting to LCE: All resources are converted to lithium carbonate equivalent (LCE) via the British Geological Survey's conversion ratios
Ownership: If a company owns 50% of a project, its LCE resource is halved
What's not included: The data does not take into consideration other factors that influence project economics such as geographical location, production costs etc. This means the data is a good starting point for comparisons but does not capture the full picture
And this is the data in table format:
Ticker
Company
Mkt Cap ($m)
Projects
Location
Status
MRE Date
Li20
Mt LCE
(A$/t LCE)
1 Core Lithium
2,110
Finniss
Australia
Producer
18/04/23
1.37
0.66
3210
2 Leo Lithium
631
Goulamina
Mali
Development
17/01/23
1.46
2.93
430
3 Pilbara Minerals
14,510
Pilgangoora
Australia
Producer
06/10/21
1.17
6.08
2385
4 Liontown Resources
6,600
Kathleen Valley
Australia
Development
01/04/21
1.38
4.42
1494
5 Essential Minerals
125
Dome
Australia
Exploration
20/12/22
1.23
0.26
478
6 Sayona Mining
1,960
Moblan, NAL, Authier
Canada
Development
~
1.16
1.89
1039
7 European Lithium
149
Wolfsberg
Austria
Exploration
01/12/21
1.03
0.25
601
8 Global Lithium
457
Manna, Marble Bar
Australia
Exploration
15/12/22
1.02
0.56
813
9 Atlantic Lithium
377
Ewoyaa
Ghana
Exploration
01/02/23
1.27
0.88
429
10 Piedmont Lithium
367
Quebec, Carolina
Canada, US
Development
~
1.11
0.96
381
Producer Premium: Pilbara and Core Lithium
Pilbara Minerals and Core Lithium have the most expensive pricetags, at an average $2,798 a tonne. But they're also the only twoproducers in our data set.
Liontown is targeting its first production in mid-2024 andcurrently sits at $1,494 a tonne. Here are a few interestingobservations:
Liontown has a 4.4Mt LCE resource, which is second only to Pilbara Minerals (on our data set)
Liontown has de-risked several aspects of its project including financing and construction progressing to schedule
This might sound obvious but only current producers have been able to take advantage of sky high prices from last year/earlier this year
The Mali Discount: Leo Lithium
Firefinch (ASX:FFX) and Resolute Mining (ASX:RSG) are two gold miners located in Mali. They tend to trade at asubstantial discount relative to ASX-listed gold peers, largely dueto being located in a rather unappealing and high-risk jurisdiction.
Leo Lithium has also fallen victim to the Mali discount. But itsproject is on track to deliver its first spodumene by the secondquarter of 2024. It's also exploring direct shipping oreopportunities in the fourth quarter of 2023, for up to 90,000 tonnes.
Will the 'Mali discount' forever weigh on Leo Lithium's valuation?Or will the stock see some sort of re-rate when it hits productionstatus and/or begins to show positive cashflows?
A Lot of Projects: Piedmont Lithium
Piedmont has been a little difficult to calculate as the companyoperates for projects with various levels of ownership:
35% interest in Sayona's (ASX: SYA) NAL and Authier Projects
Option to earn 50% in Atlantic Lithium's (ASX: A11) Ewoyaa Project
100% ownership of the Tennessee Project
100% ownership of the Carolina Project
The data for Piedmont Lithium does not incorporate the potentialAtlantic Lithium ownership.
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$3.16 |
Change
0.170(5.69%) |
Mkt cap ! $9.515B |
Open | High | Low | Value | Volume |
$3.10 | $3.20 | $3.05 | $117.6M | 37.50M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
7 | 72180 | $3.15 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$3.17 | 222212 | 12 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
7 | 72180 | 3.150 |
9 | 198984 | 3.140 |
11 | 161878 | 3.130 |
7 | 285792 | 3.120 |
3 | 131052 | 3.110 |
Price($) | Vol. | No. |
---|---|---|
3.170 | 220212 | 11 |
3.180 | 157094 | 14 |
3.190 | 168651 | 31 |
3.200 | 657116 | 75 |
3.210 | 325802 | 19 |
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