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Top Lithium Stocks To Watch In October

October has arrived, will these lithium stocks improve in the market? Throughout…
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October has arrived, will these lithium stocks improve in the market?

Throughout 2021, one of the most interesting sectors to watch has been lithium stocks. While many investors have profited from lithium stocks, these assets are also rather volatile at the moment. This increased volatility came as a result of the pandemic and the shifting economy caused by it. Not only did this affect lithium, but many other mining stocks such as those related to gold and silver were impacted by the global pandemic.

Lithium stocks have grown in popularity over the last decade because of electric vehicles. Lithium-ion batteries are one of the main components used to make these vehicles. For this reason, as the EV sector grows, so does lithium. The pandemic hurt the market for electric vehicles because of the global chip shortage. Despite this shortage, the popularity of these vehicles is not going away. Most of not all major automotive manufacturers have some sort of plan related to making electric vehicles. It seems impossible to go one month without hearing about some new faster or longer range electric vehicle that is coming to change the game.

Lithium is one of the fastest growing elements in the world. In fact, Statista believes that the material will double in demand over the course of the next few years. This is why many investors have chosen lithium stocks for their portfolio. Because of the current market volatility, it can be a bit more difficult to day trade these mining stocks. Regardless, there are many lithium stocks that are showing high market performance recently. Let’s look at three of these companies that could make your watchlist in October 2021.

Top Lithium Stocks To Watch

  1. Albemarle Corporation (NYSE: ALB)
  2. Livent Corporation (NYSE: LTHM)
  3. Piedmont Lithium Inc. (NYSE: PLL)

Albemarle Corporation (NYSE: ALB)

Ablemarle Corporation is a chemical company that develops, manufactures, and markets various products. For the most part, Albemarle sells Lithium, Bromine, and Catalysts primarily. Included in its sales are materials for lithium batteries for use in electric vehicles and electronics.

On September 30th, the company announced that its subsidiary Albemarle Lithium UK Limited has acquired all of the outstanding equity of Guangxi Tianyuan New Energy Materials Co. Ltd. The acquired company is a lithium converter that is located in China. Albemarle will acquire all of the outstanding equity from Tianyuan’s shareholders for about $200 million. This transaction is expected to close in early 2022.

CEO Kent Masters said, “This will be a key component of our next wave of projects designed to increase our conversion capacity in a capital-efficient manner in the coming years. As the global transition to cleaner energy rapidly develops, this added lithium capacity will enable us to help our customers achieve their growth and sustainability ambitions.” In the last 6 months, ALB stock is up in the market. With this in mind, will ALB make your list of lithium stocks to watch?

Livent Corporation (NYSE: LTHM)

Livent Corporation is a lithium penny stock we’ve mentioned on this site before. This is a manufacturing business that makes and sells lithium batteries. The company also sells polymer and chemical synthesis applications as well. It operates in North America, Latin America, Europe, Middle East, Africa, and the Asia Pacific.

Back in August, the company released its second quarter results for 2021. The company’s revenue grew 11% quarter over quarter to $102.2 million. This number was also 57% higher year over year. Its adjusted EBITDA rose 44% higher than the previous quarter and 150% higher year over year.

President and CEO Paul Graves said, “Lithium market conditions remain very positive in 2021 and we see the trends continuing into 2022. Pricing conditions have significantly improved during the year and we have seen a notable improvement in lithium hydroxide and carbonate demand alongside strong global electric vehicle sales growth.” Noting this info, will LTHM be on your lithium stock list?

Piedmont Lithium Inc. (NYSE: PLL)

Piedmont Lithium is a company that explores and develops various resource projects all over the United States. The company has a 100% interest in the Piedmont lithium project that covers more than 2,126 acres in North Carolina. It additionally owns a 61 acre property in Kings Mountain, North Carolina for similar exploration purposes.

Back in August, the company gave an update on its accomplishments and development plans for the future. The company’s President and CEO Keith D. Phillips said, “Piedmont is positioned to become a leading producer of lithium hydroxide while positively impacting the communities in which we operate by creating jobs, attracting other EV supply chain participants, increasing the tax base, and broadly supporting other local small businesses. Through direct investment and contracted offtake, we control a significant quantity of potential spodumene concentrate production in three critical locations.” Will PLL stock make your watchlist in October?

Top Lithium Stocks To Buy?

When deciding the best lithium stocks to buy things can get confusing. That is why it is important to stay up to date with the latest in the market. For now, which lithium stocks will you place on your watchlist in October 2021?

The post Top Lithium Stocks To Watch In October appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.

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‘We maintain our buy rating’: Gold explorer Predictive bounces back after Sprott quashes environmental concerns

Yesterday, popular goldie Predictive Discovery (ASX:PDI) fell 25% after announcing it was getting ahead of a “pending media report questioning … Read…

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Yesterday, popular goldie Predictive Discovery (ASX:PDI) fell 25% after announcing it was getting ahead of a “pending media report questioning the legality for the company to establish mining operations” at the flagship Bankan project in Guinea.

PDI acknowledged the flagship Bankan project in Guinea was in the ‘Outer Buffer Zone’ of the Upper Niger National Park.

While exploration permits are all in good standing, PDI mentions that “the Upper Niger National Park is a protected area where the mining of mineral deposits is not permitted”.

Mining is years away, and there are plenty of precedents for mining permits to be granted in the national park, it says — but the news still scared some investors.

Locality Plan – Bankan Project illustrating overlap with Buffer Zone 2 of the Upper Niger National Park. Note the extension of the Buffer
Zone well into the regional centre, the City of Kouroussa. Pic: PDI

Sprott says PDI still undervalued, reinforces 42c price target

In a note released overnight, Sprott clarified that this news isn’t new, with the National Park of Upper Niger well flagged on Google Maps.

However, with a recent maiden resource of 3.646 million ounces now in the books Bankan is no longer just an early stage discovery, an need to be treated a development prospect, it says.

“We’re glad CEO Paul Roberts is travelling to Guinea shortly to do just that,” Sprott says.

“Mining on excised cut-outs of national parks is common globally, in EU, Africa and elsewhere (in this case the buffer zone is peripheral to the core protection zone).”

“With the outer buffer already denuded (including the regional capital), post PFS / EISA as part of mining licence application we expect the area to be excised as is practice in the western world.”

Gazetted in 1997 with the buffer added in 2002, the opportunity of an excise and additional funding to protect the core/ wider park could be win-win, Sprott says.

“In emerging markets, Western miners adopting high ESG standards very simply improve the livelihood, health and wellbeing where they operate,” it says.

“In Predictive’s case, our valuation includes A$1bn of tax, A$400m in royalties and A$360m minority interest payments to the government; life-changing funds for the people of Guinea.”

As a result, “we maintain our BUY rating”, Sprott said.

The fund has a price target of 42c, based on implied gold price of US$1,850 and an indicative valuation of 0.4xNAV (net asset value).

“We see this as a buying opportunity with the stock trading at 0.16xNAV,” Sprott said.

“We remind investors that African names are high on headline / volatility risk,” Sprott said.

Have, they also have “far less precedent of permitting fails or nationalisation than elsewhere, with share prices typically recovering from moves like this”.



The post ‘We maintain our buy rating’: Gold explorer Predictive bounces back after Sprott quashes environmental concerns appeared first on Stockhead.

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Poseidon strikes potential nickel supply deal to proposed Kalgoorlie battery materials refinery

Special Report: Poseidon is on the front foot with an early-stage deal that could see it supply nickel concentrate to … Read More
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Poseidon is on the front foot with an early-stage deal that could see it supply nickel concentrate to a proposed new battery materials refinery in Western Australia.

Poseidon Nickel (ASX:POS) has signed a memorandum of understanding with Pure Battery Technologies (PBT), which has mapped out plans to build and operate a battery material refinery hub in Kalgoorlie, WA.

Under the MoU, the two companies will investigate the suitability of nickel concentrate from Poseidon’s Black Swan and/or Lake Johnston projects as feed for the refinery.

Queensland-headquartered PBT, which has a nickel and cobalt refining operation in Germany, wants to build a refinery in Western Australia that will produce precursor cathode active material (pCAM) battery metal products.

Studies will initially focus on a starting output of up to 50,000 tonnes per annum of pCAM, with the potential for expansion over time to also be considered.

“We look forward to working with PBT to determine if our potential concentrate production could be feed for PBT’s proposed refinery, should we decide to proceed with development of our projects,” managing director and CEO Peter Harold said.

“This could be a great way for us to improve the payability of the nickel in our concentrates and improve the margins of our projects.”

Poseidon recently decided the most economically attractive option for the company was to refurbish the 1.1-million-tonne-per-annum capacity processing circuit at Black Swan and “fill the mill” to maximise nickel production.

A final investment decision is slated for May 2022, with first concentrate production targeted for December the same year.

Battery makers demand more nickel 

A rapidly growing number of battery makers are requiring more and more nickel in the cathodes of their batteries because it improves the efficiency and extends the driving range of electric vehicles.

Analysts at Wood Mackenzie believe the size and substance of the nickel market is going to mutate over the next two decades.

Presently ~70% of the nickel market is funnelled into stainless steel (an end market up 14% on its own this year) while just 7% goes into battery precursor.

By 2040 battery precursor will be 30% of that first use end market, with stainless steel shrinking, in percentage terms at least, to just 53%.

But that is only half the story. While there are concerns increased nickel pig iron production in Indonesia and the sale of South East Asian nickel matte into the battery market could flood the market, demand is still expected to outstrip supply, leading to sustained deficits from 2025 on.

A market that ranked around 2.4Mt in 2020 is set to inflate more than 100% to 4.9Mt by 2040.

“Based on current market fundamentals, we expect the deficits running through to 2030 will support annual average prices approaching US$19,440 per ton or US$8.80 per pound in the old money by 2026, followed by even higher prices of around US$21,000 through to 28-29,” Angela Durrant, WoodMac principal nickel analyst, said recently.

“By then four straight years of metal inventory drawdowns will shrink global stocks towards 100 days of consumption … a level not seen since 2005, when prices also averaged US$19,980 per tonne.

Patented technology

PBT commercialised and patented the Selective Acid Leaching (SAL) process, which has been commercially proven to produce high-quality, more affordable nickel and cobalt battery materials with a lower environmental footprint.

The technology can also be used to recycle existing lithium-ion battery materials.

 


 

 

This article was developed in collaboration with Poseidon Nickel, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Poseidon strikes potential nickel supply deal to proposed Kalgoorlie battery materials refinery appeared first on Stockhead.

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De Grey confident of resource growth potential at regional targets

Special Report: De Grey Mining’s strategic plan to extend its existing resources and make large scale discoveries is looking solid … Read More
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De Grey Mining’s strategic plan to extend its existing resources and make large scale discoveries is looking solid so far, with positive RC drill results from the Withnell gold deposit and the Calvert and Gillies prospects within the Mallina gold project.

Results from Withnell returned multiple mineralised intercepts in sheared, quartz veined sediments including 29m at 5.4g/t gold from 80m (MWRC0049).

At Calvert down dip and strike extensional drilling has returned multiple intercepts at the known shear-hosted gold deposit and has expanded the footprint of the Calvert intrusion.

Results include 14m at 3.2g/t gold from 128m (MWRC0001).

And at the Gillies prospect, follow-up RC drilling has extended the previously reported zone of gold mineralisation, with results including 5m at 14.8g/t gold from 14m from 188m (MSRC0004).

Results demonstrate resource extension potential

Prior to the discovery at Hemi, the Withnell trend was the largest gold deposit (723,000 ounces gold) in the Mallina Basin.

And previous exploration at the Calvert gold deposit has defined a shallow resource of 52,000 ounces gold.

De Grey (ASX:DEG) general manager exploration Phil Tornatora says the new results to the west of Hemi “continue to demonstrate the exploration and resource extension potential of the company’s 150km long tenement package.”

“This success follows renewed regional exploration activity with the establishment of a dedicated regional exploration team earlier this year in parallel with the company’s focus at Hemi.

“The company is committed to continuing exploration across its tenement package in parallel with project studies and development activities.”

Pic: De Grey’s tenement holdings, Pilbara WA.

Aircore drilling underway at Geemas and Charity Well

Exploration has commenced with aircore drilling at the Geemas prospect this week and will move on to the Charity Well prospect in the western end of the tenement package to test intrusion-related targets.

“The aim of the exploration is to make new significant discoveries and to achieve meaningful extensions to existing regional resources that will enhance the production potential recently demonstrated in the company’s recent scoping study,” Tornatora said.

“Drilling will return to Withnell, Calvert and Gillies following initial drilling at the Geemas and Charity Well intrusion prospects and the Mallina shear-hosted target.”

 


 

 

This article was developed in collaboration with De Grey Mining, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post De Grey confident of resource growth potential at regional targets appeared first on Stockhead.

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