A snippet from $head today :- The two names Delroy has come back...

A snippet from $head today :-

The two names Delroy has come back to are MinRes backed Delta Lithium (ASXLI), which controls around 40Mt of spodumene resources in WA, and Canadian explorer Winsome Resources (ASX:WR1).

“I still think this is gonna be a very choppy, difficult year for lith with the physical pricing. But you do want to be hunting some things that are beaten up,” he said.

“Delta is not an A-Grade asset. It’s like a C-Grade asset suite but there’s strategic interest there.

“And $100-odd million at bank, probably compelling at some point for MinRes to wrap it back up with some paper and take the cash back. I’m sure their balance sheet could do with that.”

Delroy rates ~$150 million capped Winsome ahead of the $1.62 billion capped Patriot Battery Metals (ASXMT), which has drawn the most excitement from punters in Canada’s crowded James Bay lithium scene.

Winsome posted an initial resource in December of 59Mt at 1.12% Li2O at its Adina deposit last year, with a further update expected in the first half of 2024.

“That’s a quality asset that’s going to continue to grow,” Delroy believes.

“It’s a next cycle asset at best. It’s still got a journey, but it is a proper asset and it’s far more compelling from a valuation standpoint than something like a Patriot.

And it’s also, I think, got a far shorter path to market than Patriot. I think there’s a more credible permitting process with Winsome.”