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Australian Lithium Mining Companies

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#1 Corbee

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Posted 22 January 2017 - 12:17 PM

Hi Everyone.
I was recently in Hong Kong and met Dr Bubb. After talking for sometime He invited Me to post in GEI about Australian Lithium Mining companies.

My background in Lithium is that I have been investing in the Australian Stock Market Lithium companies for the last two years.
I have invested in AGY,AJM,DKO,GXY,KDR,LRS and PLS. Im currently only invested in LRS.

I dont claim to be a Lithium Investment guru. However I will provide links to people with specific Lithium knowledge.

I will be posting about the companies that Ive invested in and information links to the other companies and relevance of Lithium as an investment.

Looking forward to other posters and discussions in this topic.

Kelvin Corbett.

Attachment: Lithium Companies.


[attachment=1638:Screenshot_20170112-221747.jpg]

#2 Corbee

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Posted 22 January 2017 - 12:26 PM

Twitter links to Lithium.

Check out Lithium Power (@LithiumPowerLPI): https://twitter.com/...umPowerLPI?s=09
Check out Corporate (@lithiumworld): https://twitter.com/lithiumworld?s=09
Check out Lithium Technologies (@LithiumTech): https://twitter.com/LithiumTech?s=09
Check out Kirill Klip (@kirillklip): https://twitter.com/kirillklip?s=09
Check out InternationalLithium (@ILCtsxv): https://twitter.com/ILCtsxv?s=09
Check out Lithium News (@INN_Lithium): https://twitter.com/INN_Lithium?s=09
Check out Halmek Lithium (@PYasev): https://twitter.com/PYasev?s=09

#3 Corbee

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Posted 22 January 2017 - 12:31 PM

Lithium×Mining×Penny stocks×Lithium Producers×Chinese Lithium Investors×Chinese Lithium Processors×Lithium Hydroxide×Lithium carbonate×Brine Lithium×Spodumene Lithium× Lepidolite× Mica×

Welcome to Australian Lithium

Global lithium resources are estimated to be 39 million metric tons (MT)

Lithium is mined from three types of deposits: brines, pegmatites and sedimentary rocks. Continental brines and pegmatites (or hard-rock ore) are the main sources for commercial lithium production.

Lithium minerals containing lithia (Li2O), such as spodumene, petalite and lepidolite, are mined from open-cut and underground mines, with the largest producers being Australia, China, Zimbabwe and Canada.

Lithium-rich brines from salt lakes are located in the Andes of Chile and Argentina and in the Himalayas of China.

Australia currently has 14 ASX listed companies with Lithium deposits with four ASX listed companies with JORC compliant resources and is one of the world's top two producers acccording to the U.S. Geological Survey 2013.

 


Lithium is the lightest of all metals, silvery-white in color, soft and highly reactive and is thought to have been synthesized in the "Big Bang".

Lithium because of it's reactivity only exists naturally on Earth as chemical compounds usually in "Brines" or "Pegamites".

Points of Interest/Controversy

Is there adequate lithium in current reserves and resources to meet future world demand?Future electric cars may migrate towards some form of lithium battery due to a number of perceived advantages over NiMH and other alternatives.The lithium battery seems superior to the nickel metal hydride (NiMH) and other alternatives in terms of performance, durability and cost.

Australian Lithium is an independent website dedicated to furthering interest and discussion about the Australian lithium mining and export industry.

Search for: lithiumCAPE RANGE LIMITEDASX : CAGCAPITAL MINING LIMITEDASX : CMYPLATYPUS MINERALS LTDASX : PLPALTURA MINING LTDASX : AJMMARINDI METALS LTDASX : MZNLITHIUM AUSTRLIA NLASX : LITEAGLE NICKEL LIMITEDASX : ENLLITHEX LIMITEDASX : LTXGALAXY RESOURCES LIMITEDASX : GXYBIRIMIAN GOLD LTD.ASX : BGSOROCOBRE LIMITEDASX : ORENEOMETALS LTDASX : NMTPeninsula MinesASX : PSMCOBRE MONTANAASX : CXBTRAKA RESOURCES LIMITEDASX : TKLPILBARA MINERALS LTDASX : PLSRENASCOR RESOURCESASX : RNU


 ℹ️ 'Massive growth in demand' says PM
#lithium #ASX200 #ausbiz #renewables #China #energystorage #electricvehicles
▶️https://t.co/MnemdWeTBy https://t.co/jdr126K3EB

#4 Corbee

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Posted 22 January 2017 - 12:33 PM

Now that I've convinced you to stay away from microcap lithium stocks, you're ready to load up on the blue chips. After all, the growing demand for batteries and the sluggish rises in raw ore output (a year-over-year increase in output of just 500 metric tons) must give the four major market players the upper hand in negotiating supply deals with battery manufacturers, right?

Sort of.



ALB DATA BY YCHARTS

It goes without saying that lithium is pretty important in lithium-ion batteries. But, counterintuitively, the lithium does not have a significant impact on the cost of lithium-ion batteries. In fact, it's actually the smallest mass and cost component of the battery cells. Earlier this year, two researchers at Carnegie Mellon University did a study that played around with the price of lithium carbonate (raw lithium ore), using a base price of $7.50 per kilogram. Dropping the price to $0 and increasing it to $25 per kilogram -- an increase of 233% -- changed the cost of batteries by less than 10%.

In other words, there isn't much bargaining power to gain from keeping the market undersupplied, but the lengthy production process for lithium has kept supply lagging behind demand in the last several years. That has resulted in rising prices, which have been a boon for the Big Four in 2016. Here's how lithium contributed to the finances of Albemarle and FMC for the first nine months of 2016:

Metric

Albemarle

FMC

Revenue, lithium

$689.9 million*

$193.5 million

% of Total Revenue

34.8%*

8%

Income, lithium

$186.3 million (net income)*

$48.9 million**

% of Total Income

32.6% (net income)*

12.1%**

*INCLUDES OTHER MATERIALS. **INCOME BEFORE TAXES. SOURCE: SEC FILINGS.

In its financial reports, Albemarle lumps lithium sales in with other advanced materials it sells, but lithium is clearly driving the segment. The year-over-year sales increase for the segment was all from favorable conditions in the lithium market, which offset declining revenue from other products. FMC has seen a significant leap in lithium sales compared to 2015, too, and has announced major expansion plans to increase output before the end of the decade.

Keep in mind that the lengthy production process is a double-edged sword. If demand for raw lithium suddenly craters, perhaps in a global economic downturn or from the emergence of new mining technology, then major suppliers will be nearly two quarters behind the market's appetite. A similar scenario could unfold if other major mining or chemical companies decide to invest in production or the overall supply chain. Either case could crash prices and the income statements of lithium stocks in one fell swoop. That doesn't appear likely at the moment, but similar scenarios have played out many times in commodities markets when no one saw it coming in advance. (See: fertilizers, crude oil, and the like.)

Do lithium stocks belong in your portfolio?

Investors will want to take the issues outlined above into consideration before making a decision to gain exposure to lithium, either directly through a supplier such as Albemarle or indirectly through an ETF. In the end, the lithium market is more complex than most people realize. I'm firmly in the camp that thinks lithium stocks are simply the flavor the week for Mr. Market and do not represent a long-term buying opportunity. Perhaps when supply chains mature and prices reach more of an equilibrium, I'll reconsider my position. But for now, lithium stocks do not belong in my portfolio.

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#5 Corbee

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Posted 22 January 2017 - 12:37 PM

Portfolio?Despite the rapid growth of the lithium-ion battery market, interest in lithium stocks appears to be far outpacing the market realities for the material.


Maxx Chatsko

Dec 23, 2016 at 8:09AM



IMAGE SOURCE: GETTY IMAGES.

The case for lithium stocks seems simple enough. The world is adding new portable electric devices at an incredible pace. Just about every major automaker has at least announced plans for introducing an electric vehicle to the market within a matter of years. A little company calledTesla is moving forward on construction of a Gigafactory that will produce an enormous number of batteries for autos and home-scale energy storage -- it expects to produce as many lithium-ion batteries in 2018 as were manufactured on the whole planet in 2013. Phones, laptops, power tools, wearables, drones -- it seems everything and anything is taking advantage of advances in lithium-ion technology.

That means lithium stocks belong in your portfolio, right? As is usually the case, the details of the market make this simple argument a little more complicated. Here are a few things investors will want to consider before throwing money at the companies supplying this headline-grabbing metal.

The lithium market by the numbers

Everyone thinks of batteries when they think of lithium. However, while that is by far the fastest-growing use for the metal, batteries only account for about one-third of the total lithium market. They only became the largest category of consumption last year, when they moved ahead of ceramics and glass.



IMAGE SOURCE: USGS.

Counterintuitively, global production of lithium ore hasn't grown all that much in recent years, although mining companies are planning on major output increases in the near future. The U.S. Geological Survey concluded that 2013 output topped out at 34,000 metric tons, then fell to 31,700 metric tons in 2014. Production of raw ore is estimated to have grown by just 500 metric tons in 2015.

Sluggish production growth is not a matter of scarcity. Global output could triple and known reserves would still last about 135 years. The question is whether or not lithium suppliers can keep up (more on that below) with rising demand. This should be the focus of investors interested in lithium stocks.

Lithium market structure

There are plenty of tiny, zero-revenue stocks out there claiming to have vast reserves of untapped lithium ore. These are the crazy Uncle Joes of the market. Smile, nod, and then turn your attention to the suppliers with real market share. Albemarle Corp. (NYSE:ALB), Sociedad Quimica y Minera de Chile (NYSE:SQM), and FMC Corp. (NYSE:FMC) own a combined 70% of the global lithium market. China's Tianqi Lithium owns another 16%. These diverse specialty chemical companies buy up the rights to unmined lithium and convert it into more refined grades that are suitable for downstream customers, such as battery manufacturers.

These companies are only real way to gain exposure to the market. There is no reliable pure play lithium stock. Why not? Mining lithium is an awfully slow and laborious operation.

Consider that some 80% of global lithium reserves are to be found in salt brines in South America, namely Chile and Argentina, with over half of the world's reserves residing in the former. Getting the raw lithium out of brine requires multiple concentration, extraction, and purification steps to separate out various other metal impurities. The first step alone -- solar evaporation ponds -- takes four months. The next several steps are energy and consumable intensive, which hikes  the cost of production.



IMAGE SOURCE: OUTOTEC.

To put it another way: Uncle Joe isn't going to make it in lithium mining. The process is long and expensive, which prevents suppliers from responding rapidly to shifts in demand. Only large companies such as Albemarle, SQM, and FMC have the financial power to withstand volatility, diversify their supply chains, and make the necessary investments to create high grade lithium materials for industrial customers.

#6 Corbee

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Posted 22 January 2017 - 12:42 PM

Australian Lithium Mining Companies with JORC Resources 2015



For a wider view of companies with lithium interests see: List of Australian Mining Companies with Lithium deposits/interest

Disclaimer: The data on Australian-Lithium.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto.com) will not be held liable for any loss arising from the use of this website. Persons associated with Intaanetto hold one or more of the stocks mentioned on this page. Please note that this is a rapidly changing field and that the data contained will inevitably be out of date some of the time; meaning that you should not rely on it to make investment decisions and consequently you must do your own research.

Altura Mining

ASX Code: AJM
http://www.alturamining.com/

Has Lithium JORC Resource
25.16mt at 1.23% for 309,431t - Pilgangoora project Port Hedland-Pardoo-Marble Bar: Shallow, hard rock spodumene lithium (Li) deposit.
http://alturamining.com/?page_id=131

 



 

Galaxy Resources Ltd

ASX Code: GXY
http://www.galaxyresources.com.au/

Has three Lithium JORC Resource

Mount Caitilin, Ravensthorpe - Western Australia ~Contained Li2CO3 171,500t, Tantalite 2,555.875 t (Jan 2010)
15MT ore at 1.08% Lithium Oxide, Tantalite 161ppm -

Sal De Vida - Argentina ~ A maiden JORC-compliant Reserve estimate of 1.1 million tonnes of retrievable lithium carbonate equivalent and 4.2 million tonnes of potassium chloride (potash or KCI) equivalent.... Galaxy controls 100% of the brine mineral rights over more than 385 square kilometres on the eastern half of the Salar del Hombre Muerto. The western half of the Salar is the site of Argentina’s only commercial scale lithium mining operation owned by Minera del Altiplano, a subsidiary of FMC Corporation. The Fenix operation has been producinglithium since 1997 and according to FMC’s website has a mine life of over 75 years.

James Bay, Canada ~ Contains indicated resources of 11.75 million tonnes grading at 1.30% Li2O and inferred resources of 10.47mt grading at 1.20% Li2O.




Orocobre Ltd

ASX Code: ORE
http://www.orocobre.com.au/

Argentina, South America.
In late April, Orocobre reported a maiden resource at Olaroz of 350 million kilolitres of brine at 800 g/kL Li and 6,600 g/kL K, equivalent to 1.5 Mt of lithium carbonate and 4.4 Mt of potassium chloride. Then in early May, the company advised that it had completed a scoping study over the project. The study revealed potential to develop a long life operation with production of 15,000 tpa lithium carbonate and 36,000 tpa potash. The resource base had potential to support future expansions and there was further exploration potential beneath the current resource. Testing resulted in attractive lithium and potassium grades and low magnesium. Capital costs were in the range of US$80 - 100 million with low cash operating costs. The completion of a BFS had also been factored in and was estimated to costs US$2 million and be completed by mid-2010. The company had committed to completion of the BFS. Lithium brine Mg:Li ratio of 2:1




Neometals Ltd

ASX Code : NMT
http://www.neometals....au/lithium.php

Mt Marion, Western Australia ~ Current JORC-compliant resource of 14.8Mt @ 1.3% Li2O.
(Neometals 70% and Mineral Resources 30%)



 

Pilbara Minerals Ltd

ASX Code: PLS
http://www.pilbaraminerals.com.au/

PLS’s flagship asset is its Pilgangoora Lithium Project in WA.  The company to date has determined a JORC Resource of 80.2Mt at 1.26% Li2O, equivalent to 1.7Mt of contained LCE.  Pilgangoora is the world’s 2nd largest hard rock lithium deposit, ranking only behind the world class Greenbushes mine.  Compared to other emerging hard rock lithium producers, Pilgangoora ranks above average in terms of size, grade, and costs, as well as demonstrating favourable metallurgy to date

#7 DrBubb

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Posted 23 January 2017 - 05:41 AM

There is another very similar thread here:

 

> (Clone thread - Link coming)

 

After seeing where the most hits are received, I will eventually merge the two thread


The market is "bipolar", swinging back and forth from a focus on Inflation to Deflation. Bet on swings; and stay flexible. What are bipolar markets? See: http://tinyurl.com/GEI-Manix

#8 Corbee

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Posted 23 January 2017 - 07:09 AM

Information from Michael Langford.

Hello all,

Have just arrived back in Australia after another a trip to Hong Kong.

I spent the week meeting industry participants, investors in the sector and a number of my Chinese contacts, and in my opinion, if you want to understand the current state of the lithium market there are two people you want to listen; Joe Lowry @globallithium and Simon Moores (recommend getting on their twitter if you aren’t already), I’ll also humbly offer myself as a reference too.

From my travels and meetings is it apparent that none of the major banks have been in Asia speaking to the people that matter, the guys on the ground. Essentially, the major banks have as much credibility right now on this topic as any other random person.

I plan on providing a more in-depth update again, over the coming days.

A key question in my mind is “why did the market not see the lithium shortage coming?”

In my view, the Chinese and other countries are operating under the assumption that lithium is an abundant easy to extract mineral. We know this is just not true and it is reflected in the market taking below specification grade product from Mt Caitlin (high mica content) and Mt Marion (high iron oxide (Fe02) content). I believe that both of these projects will continue to prosper as the reality is there is not enough lithium to supply the market, so any lithium regardless of quality will be taken.

It was not the massive increase in demand for electric bikes / electric cars / government subsidies / taxes on lead acid batteries or changes in Government policy – such as bans on petrol vehicles from 2025 in Sweden & Norway / proposed ban from 2030 in Germany. It was, in my opinion, the demand for electric buses that totally took the Chinese industry by surprise.

Just like all the technology companies that change into gold, uranium, or lithium explorers on the ASX you also have companies like Ningbo Shanshan (who recently launched an unsuccessfully, Chinese Gov’t supported, US$1.5bn bid for a 30% stake in SQM) enter the white-hot battery manufacturing space. Just 2 years ago Ningbo Shanshan was a garment manufacturer, but now has 8 operating battery plants….. (Who are we signing BOA’s with again???).

My understanding is Ningbo Shanshan wanted this purchase to secure lithium supply. Being a 30% holder was not going to guarantee that as supply was already locked up. Who was advising these guys????

In my opinion when you have US$1.5bn to spend and have not spent it on your first target you start looking for a different target, fast. Say hello to my friend, PLS….

In my opinion the EV sector has lost confidence in the battery sector to secure supply. The reality of Sichuan Tianqi Lithium stating in Dec 2015 they would stop supplying the general market (eg. battery makers) from Jan 2017 (I have been told it is actually Nov 2016) is becoming a reality. The EV battery sector appears to be moving strategically to secure its own supply.

http://www.businesst...g-battery-costs

This has the potential to cause a doubling up on potential demand as everyone scrambles for strategic reasons.

Some say that writers of the sector reports by Deutsche Bank Report / Macquarie Bank (desktop hero) / Citi Bank reports guys never actually went to China. It blows my mind that they do not even mention Optimumnano – the largest lithium ion battery maker in China, nor Ningbo Shanshan who just tried a US$1.5b bid for 30% of SQM and has 8 operating factories.

They also miss:

Industry lithium demand growth of 300% (cited by major battery groups) in demand 2017 and 200% in 2018;

Massive increase in lithium battery related factories globally (VW US$15.5bn / Faraday US$5bn etc, etc);

Government shifts towards cleaner vehicles – bans on petrol cars (numerous European countires);

Continuing drop in cost of renewable energy, particularly solar;

A final word on potential supply disruptions

We know that Greenbushes is operating in an extremely environmental sensitive area close to mine that has numerous implications for water usage and operations. As mining goes deeper, it becomes more expensive and difficult to achieve the same output.

In my view it’s entirely possible that we see delays in timing and missing of production targets for any development project, add to this the potential cost over-runs, and we have an environment where supply remains tight, and with growing demand, the value of producing and near production assets increases.

Best Wishes,

Michael Langford (aka Superninja)

#9 DrBubb

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Posted 25 January 2017 - 06:20 AM

I finally had time, and enough internet bandwidth, to get the charts up on...

 

The Clone thread: http://www.greenener...showtopic=21259

 

Have a look at the charts !


The market is "bipolar", swinging back and forth from a focus on Inflation to Deflation. Bet on swings; and stay flexible. What are bipolar markets? See: http://tinyurl.com/GEI-Manix





Also tagged with one or more of these keywords: SpodumeneBRINE, SALARS, LEOPIDOLITE, Lithium hydroxide, Lithium carbonate

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