A valuable resource for your ongoing use

Thursday, 19 April 2018
Melbourne, Australia
By Terence Duffy

Editor’s note: Bernd Struben and most of the staff at Port Phillip Publishing are attending ‘The Paradox of Prosperity’ conference at the Grand Hyatt in Melbourne today.

Due to logistical reasons, this will be Port Phillip Publishing’s last ever blockbuster event. And tickets were offered solely to our Alliance members. But fear not. We’ve hired a professional film crew to tape the entire event. Every keynote speaker. Every breakout session. And every one-on-one interview Bernd will be conducting with the speakers following their presentations.

The video package, which includes complete typed transcripts, officially goes on sale following the event. However, you can pre-order your copy now — for a 20% early bird discount — by going here. Don’t dawdle too long though. The discount offer ends at midnight this Friday.

In the meantime, we thought you’d enjoy this issue of Money Morning Trader, originally published on Tuesday, 17 April.

Money Morning Trader is a daily paid service (Monday–Friday), brought to you by our expert chartist, Terence Duffy. Terence details how the day’s charts tell you everything you need to know about the economy and the stocks about to move. And they do it long before the mainstream financial media gets onto the story. Terence looks for stocks about to break higher, and to get on board for the run. As he says, the stock market itself tells you which stocks to buy! To understand what he means by that, you can find out more about Money Morning Trader here.

One of the themes I’ve written about recently is the growing use of batteries for power storage.

Electric vehicles kicked off our interest in the field.

A host of other projects make power storage an even more compelling story.

Meanwhile, rising power prices make it a hot political issue.

Many householders have taken the step to install solar panels to fight the price rises. The systems work well when the sun is shining. But solar panels don’t produce as much energy during winter. And they don’t work at night.

They’re very efficient in summer during the day, when most of us are out at work.

Householders with solar panels often installed systems that are ready to be hooked up to a battery. They’re waiting for battery prices to become more affordable. Once this happens, demand will grow rapidly.

The South Australian government has already taken up the technology.

After a state-wide blackout in September 2016, South Australia turned to renewable energy sources backed up by battery storage. Tesla installed the world’s largest lithium-ion battery to smooth out the state’s power supply. It’s paired to the neighbouring Hornsdale Wind Farm.

In February, South Australian Premier Jay Weatherill announced another deal with Tesla. At least 50,000 homes across the state will get a solar and battery system installed for free.

The systems will also help the wider community. External operators will have access and will be able to release stored energy to the grid in times of need. They’re calling it a virtual power plant.

The pent up demand generates a lot of interest for miners who produce minerals for use in batteries.

One of these minerals, of course, is lithium. But who are the players and what do they do? It can be hard to keep up with who does what.

Here’s a list of some of the ASX-listed companies with an interest in lithium mining:

Altura Mining Ltd [ASX:AJM] has the Pilgangoora lithium project about 123km from the town of Port Headland in Western Australia. It’s a hard-rock open pit mine at an advanced stage of construction. The company expects to commence production and the first sales of lithium in the current quarter.

On 15 March, Altura confirmed it’s in discussions with China’s J&R Optimum Energy Co Ltd for potential control of the company. It appointed Citibank to act as corporate adviser.

Anson Resources Ltd [ASX:ASN] is an Australian exploration company with a primary focus on developing the Paradox lithium brine project in Utah, US.

Argosy Minerals Ltd [ASX:AGY] has a 77.5% interest in the Rincon lithium brine project in Argentina. It’s located in the so called ‘Lithium Triangle’ which hosts the world’s largest lithium brine deposits.

On 3 April, Argosy announced it was moving closer to production with the operational start-up of its Stage 1 pilot plant.

Birimian Ltd [ASX:BGS] is an Australian explorer with interests in several gold and lithium projects in western Africa. It’s carrying out feasibility studies at the Goulamina project in Mali with the objective of commencing production in 2019.

Force Commodities Ltd [ASX:4CE] is a lithium explorer and developer based in Western Australia. It has a share of two lithium projects in the Democratic Republic of Congo.

Galaxy Resources Ltd [ASX:GXY] made its first shipment of about 10,000 tonnes of lithium concentrate in January from its Mt Cattlin mine near Ravensthorpe in Western Australia. It also operates the Sal de Vida lithium brine project in Argentina and the James Bay open pit lithium pegmatite project in Quebec, Canada.

Galaxy Resources has become a heavyweight in a relatively short time with a market cap of $1.2 billion.

Kidman Resources Ltd [ASX:KDR] holds the globally significant Earl Grey lithium deposit. The company believes it’s the largest hard-rock lithium resource on the ASX. Kidman also holds the million-ounce Mt Holland gold project near Southern Cross in Western Australia.

Lake Resources NL [ASX:LKE] has 100% ownership of a number of lithium projects in Argentina. The company boasts one of the largest lithium tenements in Argentina of any listed entity. Three projects were secured in an area that produces half of the world’s lithium.

Lithium Australia NL [ASX:LIT] is effectively a technology play in the lithium field. It has produced technology it calls SiLeach for processing lithium silicates into battery-grade materials.

Lithium Power International Ltd [ASX:LPI] has 50% of the Maricunga lithium brine joint venture in Chile. It also has Centenario project in Argentina and a number of projects in Western Australia.

MetalsTech Ltd [ASX:MTC] is developing a number of cobalt and lithium projects in Ontario and Quebec in Canada.

Neometals Ltd [ASX:NMT] has 13.8% of the Mt Marion lithium project in Kalgoorlie, Western Australia. It’s a joint venture with China’s Ganfeng Lithium Co Ltd and Mineral Resources Ltd [ASX:MIN]. Neometals is also developing proprietary processes in other areas of making batteries.

Orocobre Ltd [ASX:ORE] has a share of Sales de Jujuy, the local operating company of the Olaroz lithium joint venture project in Argentina. It’s dual-listed on the ASX and the Toronto Stock Exchange and is included in the S&P/ASX 200 index.

Orocobre also owns Borax Argentina SA, a boron chemical and mineral producer with a 50-year production history.

Piedmont Lithium Ltd [ASX:PLL] took its name from the Piedmont lithium project at two historical mines in North Carolina, US.

Pilbara Minerals Ltd [ASX:PLS] has the Pilgangoora lithium-tantalum project near Port Headland in Western Australia. It’s one of the largest new hard-rock lithium resources in the world.

Sayona Mining Ltd [ASX:SYA] operates the Authier lithium project in Quebec, Canada. It also has an option to acquire 12,000 hectares of prospective tenements at the nearby Tansim exploration project.

This is by no means an exhaustive list. It’s estimated that more than 70 ASX-listed companies moved into the lithium space in recent years. But we now have a watch list of most of the biggest players on the ASX in the lithium space.

Good trading,

Terence Duffy,
Editor, Money Morning Trader