viewJindalee Resources Ltd

Jindalee Resources acknowledges positive lithium market fundamentals in annual report

The company maintained a strong balance sheet throughout the period, ending June 30 with around $3.2 million in cash and shares.

Jindalee Resources Ltd - Jindalee Resources acknowledges lithium market interest in latest 2019 annual report
After the end of FY19 Jindalee announced a non-renounceable entitlement offer to raise about $1 million

Jindalee Resources Ltd (ASX:JRL) acknowledges in its annual report for FY19 that confidence in underlying market dynamics provides the Board with the confidence to continue to invest in the development of lithium assets in the US.

Non-executive chairman Justin Mannolini said in the report that the Board had belief in the underlying industrial thesis for battery metals.

"Notwithstanding recent market dynamics, the Board considers that the macro trend towards a low-carbon economy, particularly the electrification of transportation, remains largely intact.

"Over the medium to long term, prices for battery metals are likely to continue to be robust, if not immune to the usual cyclical factors," he stated in the chairman's report.

Increasing interest

The chairman said: "We have been gratified to see increasing market interest in the potential of lithium sediments to yield economic sources of feedstock for the production of lithium salts (carbonate and hydroxide).

"The US Government’s continued and vocal rhetoric around the need for resource security, coupled with heightened trade tensions with China (which show no signs of abating), provide a favourable backdrop for the company’s lithium strategy."

He said this had also translated Into increased demand for Jindalee’s shares as well as the 40% increase in market capitalisation of the company over the 12 months to June 30, 2019.

McDermitt Lithium Project

Jindalee has maintained a steady, incremental approach to de-risking the McDermitt project in Nevada, USA, at low-cost to support the estimation of a maiden mineral resource and update the existing exploration target range.

Within the report, it was highlighted that the scale of McDermitt is ‘significant’ and lithium can be extracted using conventional means.

The McDermitt project remains a primary focus for the company with data suggesting it has the potential to become one of the largest lithium deposits in the US.

Resurgence of nickel

Mannolini also acknowledged that the benefits of Jindalee’s diverse portfolio of tenements had been demonstrated in the recent resurgence of interest in nickel, this time as a key component of battery manufacturing.

“With this in mind, we have continued, through a combination of acquisitions and disposals to consolidate our tenement portfolio and focus on optimising our position in the Widgiemooltha region of WA.

“Jindalee now has one of the largest landholdings in the region which is prospective for a range of minerals including gold, nickel, and lithium and we are actively considering means to leverage this position for the maximum advantage of our shareholders.”

Quick facts: Jindalee Resources Ltd

Price: 0.34 AUD

Market: ASX
Market Cap: $13.21 m

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