{"id":41465,"date":"2023-07-28T04:55:21","date_gmt":"2023-07-28T08:55:21","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/lithium-junior-miners-news-for-the-month-of-july-2023\/"},"modified":"2023-07-28T04:55:25","modified_gmt":"2023-07-28T08:55:25","slug":"lithium-junior-miners-news-for-the-month-of-july-2023","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=41465","title":{"rendered":"Lithium Junior Miners News For The Month Of July 2023"},"content":{"rendered":"
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Welcome to the July 2023 edition of the ‘junior’ lithium miner news. We have categorized those lithium miners that won’t likely be in production before 2024 as the juniors. Investors are reminded that many of the lithium juniors will most likely be needed in the mid and late 2020’s to supply the booming electric vehicle [EV] and energy storage markets. This means investing in these companies requires a higher risk tolerance and a longer time frame.<\/span><\/p>\n

July saw another very busy month with plenty of good news from the lithium juniors. Some easing of the Canadian bush fires was also good to hear.<\/p>\n

Lithium price news<\/strong><\/h2>\n

Asian Metal reported during the past 30 days, the 99.5% China delivered lithium carbonate (99% min.) spot price was down 6.27% and the China lithium hydroxide (56.5% min.) price was down 8.23%. The Lithium Iron Phosphate (3.9% min) price was down <\/span>2.39%. The Spodumene (6% min) price was down <\/span>0.62% over the past 30 days.<\/span><\/p>\n

Metal.com reported lithium spodumene concentrate (6%, CIF China) average price of USD 3,485\/t, as of July 25, 2023.<\/p>\n

China lithium carbonate spot price 5 year chart – CNY 294,500 (~USD 41,122) (source)<\/strong><\/p>\n

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\"China<\/picture>
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Trading Economics<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

Rio Tinto forecasts lithium emerging supply gap (chart from 2021) – 60 new mines the size of Jadar needed<\/strong><\/p>\n

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\"Rio<\/span>
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Rio Tinto<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

Lithium market news<\/h2>\n

For a summary of the latest lithium market news and the “major” lithium company’s news, investors can read: “Lithium Miners News For The Month Of July 2023” article. Highlights include:<\/p>\n

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  • U.S DoE: Lithium & nickel are the two ‘high importance to energy’ critical materials in the mid term (2025-2035).<\/li>\n
  • BMI: Financing the battery arms race: The $514 billion cost of bridging the global EV supply chain divide.<\/li>\n
  • The future is lithium: Investing in the essential metal for tech and energy progress.<\/li>\n
  • Exxon Mobil expands lithium bet with Tetra Technologies deal.<\/li>\n
  • UK set to begin lithium mining (in 2028) as France’s Imerys agrees deal with British Lithium.<\/li>\n
  • Argentina’s Y-TEC (a unit of Argentine state oil firm YPF) to begin lithium battery production in Sept. 2023 with lithium supplied by Livent.<\/li>\n
  • China jumps ahead in the rush to secure lithium from Africa.<\/li>\n
  • Australia forecasts brutal lithium price correction as output surges.<\/li>\n
  • CATL touts breakthrough in cold-weather EV charging.<\/li>\n
  • Battery cathode prices rise for first time this year as lithium costs increase.<\/li>\n
  • Freyr Battery awarded a \u20ac100M ($112M) grant from the EU to support the development of its Giga Arctic project in Norway.<\/li>\n
  • China’s first-ever lithium futures tumble on trading debut. “Sentiment is now tempered by an anticipated surplus for lithium products in 2024.”<\/li>\n<\/ul>\n

    Junior lithium miners company news<\/strong><\/h3>\n

    Wesfarmers [ASX:WES] (OTCPK:WFAFY) (took over Kidman Resources)<\/strong><\/p>\n

    The Mt Holland Lithium Project is a 50\/50 JV (“Covalent Lithium”) between Wesfarmers [ASX:WES] (OTCPK:WFAFF) and SQM (SQM), located in Western Australia. There is also a proposal for a refinery located in WA. More details here at: Progress at the Mt Holland lithium project.<\/p>\n

    No lithium related news for the month.<\/p>\n

    Mt Holland Project update May 30, 2023 (source – page 84)<\/strong><\/p>\n

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    \"Mt<\/span>
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    Wesfarmers<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

    You can view the latest company presentation here.<\/p>\n

    Upcoming catalysts include:<\/p>\n

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    • Late 2023 – Mt Holland spodumene production.<\/li>\n
    • H1, 2025 – Kwinana LiOH refinery planned to begin and ramp to 45-50ktpa LiOH.<\/li>\n<\/ul>\n

      Liontown Resources [ASX:LTR] (OTCPK:LINRF)<\/strong><\/p>\n

      Liontown Resources 100% own the Kathleen Valley Lithium spodumene project in Western Australia. Mostly funded to production.<\/p>\n

      On July 19 Liontown Resources announced:<\/p>\n

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      Liontown awards Spodumene Concentrate haulage contract… Following an extensive tender process, Qube has secured the five-year contract, which involves loading spodumene concentrate at Kathleen Valley; haulage of the concentrate to the Port of Geraldton; storage and stockpile management at the port and the outload to port infrastructure for shipment to Liontown customers… The contract is due to commence in mid-2024 in line with process plant ramp-up…<\/p>\n<\/blockquote>\n

      You can view the company’s latest presentation here.<\/p>\n

      Upcoming catalysts include:<\/p>\n

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      • 2023-24: Kathleen Valley Project construction<\/li>\n
      • Q1, 2024: Commissioning with production set to begin mid 2024 <\/li>\n<\/ul>\n

        Leo Lithium Limited [ASX:LLL]<\/strong><\/p>\n

        Leo Lithium is developing the Goulamina Lithium Project (50\/50 JV with Ganfeng Lithium) in Mali with a total Resource of 211 Mt @ 1.37% Li2O, targeting a production start in mid 2024.<\/p>\n

        On June 30 The West Australian reported: “West Perth-based Leo Lithium shares rise after producing direct shipped ore at Goulamina in West Africa.”<\/p>\n

        On June 30 Leo Lithium Limited announced: “Leo Lithium produces first DSO, offtake process set to commence.” Highlights include:<\/p>\n

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        • “Mining of DSO commences at Goulamina, with crushing equipment at the starter pit performing efficiently.<\/li>\n
        • Trucking contractors for DSO set to be appointed imminently.<\/li>\n
        • Early revenue from DSO remains on track for Q4 2023, targeting the export of 185 kt prior to first spodumene concentrate production in H1 2024.”<\/li>\n<\/ul>\n

          On July 14 Leo Lithium Limited announced: “Goulamina mining services contract awarded to specialist West African Operator.”<\/p>\n

          On July 20 Leo Lithium Limited announced:<\/p>\n

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          Leo Lithium Limited (ASX: LLL) – Suspension from quotation. The securities of Leo Lithium Limited (‘LLL’) will be suspended from quotation immediately under Listing Rule 17.2, at the request of LLL, pending the release of an announcement regarding correspondence from the government of Mali.<\/p>\n<\/blockquote>\n

          You can view the company presentation here.<\/p>\n

          Upcoming catalysts include:<\/p>\n

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          • Q4, 2023: DSO targeted to begin.<\/li>\n
          • Q2, 2024: Commissioning targeted to begin for Goulamina.<\/li>\n<\/ul>\n

            Investors can read the recent Trend Investing article on Leo Lithium here.<\/p>\n

            Eramet [FR:ERA] (OTCPK:ERMAY) (OTCPK:ERMAF) – ‘Targets DLE production by early 2024’<\/strong><\/p>\n

            Eramet is in a JV ‘Eramine Sudamerica’ (50.1% Eramet, 49.9% Tsingshan) which owns the Centenario-Ratones Lithium Project in Argentina. Eramet targets to start DLE production by Q2 2024.<\/p>\n

            On June 30 Bloomberg reported:<\/p>\n

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            Glencore in talks to back Argentina Lithium plant for future supply… The commodity giant will sign an offtake agreement in exchange for helping to fund the lithium processing plant that Eramet is building with China’s Tsingshan Holding Group Co., according to people familiar with the matter, who asked not to be identified because the information is private… Eramet is building the 24,000-ton-a-year lithium processing plant with China’s Tsingshan, which is the world’s biggest producer of nickel and stainless steel. The project has an estimated cost of more than \u20ac700 million ($763 million) and is due to start production in the second quarter of next year, with a full ramp-up by mid-2025, Eramet said in a presentation in May. The French company and its Chinese partner plan to decide later this year whether to triple the plant’s capacity.<\/p>\n<\/blockquote>\n

            On July 3, Eramet announced: “Eramet: Closing of the divestment of Erasteel, the final step in Eramet’s repositioning in its Mining and Metals activities…”<\/p>\n

            Investors can read the recent Trend Investing article on Eramet here.<\/p>\n

            POSCO [KRX:005490] (PKX)<\/strong><\/p>\n

            POSCO owns the northern Sal de Vida (Hombre Muerto salar, Argentina) tenements bought from Galaxy Resources (now Allkem). POSCO targets to start DLE production by H1, 2024.<\/p>\n

            On July 3 Market Screener reported:<\/p>\n

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            South Korea’s POSCO plans $93 billion of investment by 2030. South Korean steelmaking and materials conglomerate POSCO Group, headed by POSCO Holdings, said on Monday it plans to invest 121 trillion won ($93 billion) by 2030 for growth in core businesses such as steel, battery materials and hydrogen.<\/p>\n<\/blockquote>\n

            On July 11 Market Screener reported: “Posco Group sets up Battery Recycling Ecosystem in South Korea’s South Jeolla Province…”<\/p>\n

            On July 23 Bloomberg reported: “Posco jumps most ever on bumper profits and EV battery bets.” Highlights include:<\/p>\n

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            • “Stock also gets boost as short sellers cover bearish wagers.<\/li>\n
            • Shares surge as much as 24%, extending monthly gain to 76%.”<\/li>\n<\/ul>\n

              Upcoming catalysts include:<\/p>\n

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              • Late 2023 – Plan to commission production of POSCO\/Pilbara Minerals JV LiOH facility in Korea.<\/li>\n
              • H1, 2024 – Target to commence production at Hombre Muerto and ramp to 25ktpa LiOH.<\/li>\n<\/ul>\n

                Atlantic Lithium Limited [LSE:ALL] [ASX:A11] (OTCQX:ALLIF)<\/strong><\/p>\n

                Atlantic Lithium is progressing its Ewoyaa Project in Ghana towards production. Piedmont Lithium has a 50% project earn-in share.<\/p>\n

                On June 29, Atlantic Lithium Limited announced: “Ewoyaa Definitive Feasibility Study” Highlights include:<\/p>\n

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                • “3.6 million tonnes (“Mt”) spodumene concentrate production over 12-year Life of Mine (“LOM”).<\/li>\n
                • Exceptional Project economics: Post-tax Net Present Value (“NPV8<\/sub>“) of US$1.5bn with free cash flow of US$2.4bn from LOM revenues of US$6.6bn, Average LOM EBITDA of US$316 million per annum, Internal Rate of Return (“IRR”) of 105% and short payback of 19 months.<\/li>\n
                • C1 cash operating costs of US$377\/t of concentrate Free-On-Board (“FOB”) Ghana Port, after by-product credits from conventional open cut mining operation; All in Sustaining Cost (“AISC”) of US$610\/t.<\/li>\n
                • Modest capital cost estimate of US$185 million.<\/li>\n
                • Incorporates Modular DMS units to generate early cash flow and increased throughput from 2Mtpa to 2.7Mtpa: Modular DMS cash flow reduces mine build peak funding requirement; capex paid back prior to full completion of plant build; and DFS maintains low capital intensity of US$64\/t of annualised throughput.<\/li>\n
                • Throughput increased by 35% following significant uplift in Ore Reserves to 25.6Mt @ 1.22% Li2<\/sub>O…<\/li>\n
                • DFS incorporates Mineral Resource Estimate1<\/sup> (“MRE”) of 35.3Mt @ 1.25 Li2<\/sub>O and conservative LOM concentrate pricing of US$1,587\/t, FOB Ghana Port.<\/li>\n
                • Project benefits from close proximity to operational infrastructure, low energy and water-intensity process flow sheet, proximity to potential off-takers and skilled Ghanaian workforce within surrounding communities; over 800 direct jobs to be created.”<\/li>\n<\/ul>\n

                  Upcoming catalysts include:<\/p>\n