Sign up Australia
Proactive Investors - Run By Investors For Investors

Lithium Australia attracts speculative buy recommendation from Perth broker

Lithium Australia NL is disrupting the lithium supply chain.
Lithium Australia attracts speculative buy recommendation from Perth broker
A number of key milestones are expected to occur in 2018

Lithium Australia NL (ASX:LIT) is trading in the $0.20 range and Perth broker RM Research has initiated coverage with a speculative buy recommendation.

RM Research considers the ability to produce advanced lithium ion cathode material moves Lithium Australia up the lithium value chain.

Adding interest, it says the company also provides the opportunity to integrate the various technologies required to participate in all sectors of the energy metal cycle. The following is an extract from the report.

Significant events expected to occur

RM Research says a number of significant events are expected to occur over the course of 2018 as Lithium Australia progresses key milestones.

These include the SiLeach® LSPP, the recommissioning of VSPC cathode facilities and establishing a commercial pathway for lithium-ion recycling.

Disrupting the lithium supply chain

Lithium Australia is an innovator and developer of disruptive-lithium extraction and production technologies.

The following is an extract from the report:

Maiden lithium resource for Sadisdorf project

Inferred Mineral Resource estimate of 25Mt @ 0.45% Li2O for Sadisdorf tin-lithium project in Saxony, Germany.

Capable of producing a high-grade lithium mica concentrate.

The resource has the potential to feed a 25,000tpa lithium carbonate plant for 10 years.

SiLeach® hydrometallurgical process suited to unlocking the lithium value from Sadisdorf and similar historical tin deposits.

Lithium Australia enters $3b cathode market through VSPC acquisition

Shareholders approved the acquisition of advanced cathode material producer, Very Small Particle Company (VSPC) at LIT’s AGM on 30 November 2017.

VSPC’s Lithium Iron Phosphate (LFP) cathode material tested by Independent laboratory in Germany outperforms reference standard.

Large-scale SiLeach® pilot plant on track for 2018

Further optimisation studies and test-work continue with LIT on track to approve the construction of a Large-scale SiLeach® pilot plant (LSPP) early in 2018 and has recently stated its intention to fund construction off its own balance sheet.

Pilot-testing of SiLeach® produced battery-grade lithium carbonate from sub-spec spodumene and lithium micas.

Studies show that SiLeach® LSPP can be cash positive with additional cost reduction upside from further optimisation, scale up and by-product credits.

Strategic alliances

LIT continues to build out its network of strategic exploration projects and alliances globally.

In the last quarter alone LIT has:

- Executed MOU for Lithium exploration-processing with ASX listed Poseidon Nickel.

- Expanded its North Queensland exploration footprint.

- Acquired a majority interest (54%) in its Mexican lithium clay project.

BlackEarth Minerals (BEM) prepares for IPO

LIT’s graphite focused subsidiary BlackEarth Minerals Ltd has raised more than $4.5m ahead of ASX listing. LIT to hold a minimum of BEM post listing valued at $2.2 million.

Recycling strategy

LIT has established subsidiary Resource Conservation and Recycling Corporation Pty Ltd (RCARC) and is currently undertaking advanced research programs to evaluation cradle-to-grave cycles of Lithium Ion Batteries.

$18 million+ cash at bank

As at 1/12/2017, LIT held $18m in cash reserves which has likely continued to increase substantially through LIT’s use of the Controlled Placement Agreement (CPA) with Acuity Capital.

View full LIT profile View Profile

Lithium Australia NL Timeline

Related Articles

December 13 2017
The Toronto-listed firm's main asset is the Relief Canyon Mine in Pershing County, Nevada..
Breaking first ground at the HPA plant site
August 10 2018
Stage I construction at Johor site kicks off with a geotechnical drilling and ground survey program.
January 18 2018
NextSource Materials Inc (TSE:NEXT) (OTCQB:NSRCF) may just be the best graphite company few investors know of.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use