Something for the short sighted to ponder.
Aleks Vickovich
Wealth editor
Australian investors have flooded back to once-loved lithium mining stocks in recent weeks, aided by better than expected electric vehicle sales and enthusiastic cheerleading from day traders on social media.
Data supplied to AFR Weekend by Selfwealth suggested ASX-listed lithium miner Lake Resources was the most-bought security on its share-trading platform in the first 16 days of August.
The online broker, which has about 120,000 users, processed $16 million worth of buy orders for Lake Resources, beating perennial local favourite, Vanguard’s Australian Shares Index ETF ($13.4 million).
Lake Resources was also catapulted into second spot on Superhero’s tally of most-bought ASX stocks for the August 1-16 period, up from fifth spot in June. Fellow metals explorer Core Lithium took first spot on the ranking, up from fourth place in July.
Sayona Mining, which produces lithium at locations in Western Australia and Quebec, Canada, rose from sixth spot to fourth. Liontown Resources rose from ninth place to seventh. Pilbara Minerals also made Superhero’s top 10 (albeit down one place from ninth in July).
Electric vehicle pioneer Tesla, which is a major buyer of lithium for its car batteries, was the most-bought US stock on Superhero in June, July and August so far. On the Disallowed app, Sayona was the most traded security on the platform in July, including both buy and sell orders.
Share prices for each of the lithium miners surged over the month to Friday, with Lake Resources up 70.4 per cent, Core Lithium up 50 per cent, Sayona Mining up 75 per cent, Liontown up 67 per cent and Pilbara up 29 per cent. However, they have all fallen between 3 per cent and 18 per cent over the past five days.
Dermot Ryan, a lithium market bull and portfolio manager at Renaissance Asset Management, said the surge in demand for lithium stocks came as a number of mines were reaching maturity and producers were benefiting from the commodities boom.
‘‘They can now start expanding their mines and cover the cost of building out their operations organically,’’ Mr Ryan said, describing the ASX’s community of lithium miners as being in a ‘‘strong position’’.
‘‘There have been really strong EV sales, up 50 per cent year-on-year, and much of that comes from China, despite a very challenged economy over there.’’
China Passenger Car Association, an industry body, earlier this month forecast that EV sales in China would reach a record 6 million this year, indicating strong ongoing demand for lithium.
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