Post Reply
321-340 of 842
Corporate deals in the lithium industry are heating up at a time when there is a predicted multi-billion-dollar cash injection needed to ramp up supply to meet rapidly growing demand.
One expert says at least US$12 billion ($17.3 billion) needs to be invested in new lithium projects by 2025 if the industry is to have any realistic hope of matching supply with demand.
US lithium expert Joe Lowry told delegates at the Latin America Downunder mining conference in Perth that the ?Big Four? global lithium producers ? SQM, Albemarle, Jiangxi Ganfeng Lithium and Tianqi ? could not alone meet 2025 lithium demand.
?Overall, the industry faces a lack of financing and needs to inject more than US$12 billion within five years to have a chance of meeting demand,? he said.
?This requirement is exacerbated further by known and emerging failures in lithium start-ups which have demonstrated a lack of necessary skillsets ? high profile failures that have discouraged sector investment.
?There will not be any significant lithium chemical oversupply anytime soon. While there have been many optimistic supply forecasts, recent results speak for themselves.?
Pfft. What lithium glut?
Lowry took aim at Morgan Stanley and other analysts that previously predicted a flood of new lithium supply would hit the market this year causing an oversupply and pushing down the price.
He dismissed the forecasts of oversupply as a myth.
?The ?myth? is driven by reports from ?big bank? analysts and supported by statements by Chilean regulator, CORFO, after its revised agreements allowing Albemarle and SQM to produce more material from the Atacama brine resource,? Lowry said.
?The reality is increasing production quickly is not so easy.?
Last year there was about 270,000 tonnes of lithium demand and Lowry estimates that will rise to about 1 million tonnes in 2025.
?It?s pretty much not argued anymore that e-mobility is happening ? whether it?s EVs or scooters or ferries in Scandinavia, the transition to e-mobility is on,? Lowry said.
?My numbers are actually some of the lower numbers out there.?
Battery-related lithium demand in 2018 accounted for 60 per cent, up from 25 per cent five years earlier.
?So this market is becoming a battery-related market. There?s really no question about that,? Lowry said.
But new lithium supply is hard to bring online and SQM, Albemarle, Jiangxi Ganfeng Lithium and Tianqi are likely only be able to maintain their 68 per cent market share, according to Lowry.
?Almost every lithium project that has ever started with optimism has taken three or four years longer to reach full capacity and that?s what we?re seeing,? he said.
?That means there?s a lot of juniors or smaller companies around the world that need to get financed and need to get moving.?
Subscribe to our daily newsletter
Join our small cap Facebook group
Follow us on Facebook or Twitter
Deal-making steps up a gear
Close on the heels of Wesfarmers? seminal $776m bid for Kidman Resources (ASX:KDR), Galaxy Resources (ASX:GXY) has tipped $22.5m into more junior producer Alliance Mineral Assets (ASX:A40) to become its largest shareholder.
The cash injection gives Galaxy a roughly 11.5 per cent interest, and a blocking stake, in Alliance, managing director Mark Calderwood told Stockhead.
Galaxy?s investment was part of a larger $32.5m placement at 20c per share, which also included $10m from a subsidiary of Jiangxi Special Electric Motor Co.
Jiangxi has about a 9.9 per cent stake in Alliance.
?I guess from [Galaxy?s] point of view it?s stopping us from being a target for someone else to come and grab, and we were the cheapest lithium miner in the market,? Calderwood said.
?Both Jiangxi and Galaxy are a lot bigger than we are, they?re both experts in their sectors so that?s good for us and it enables us to be cooperative in the future.
?Both parties have either a blocking stake or almost a blocking stake.?
READ: ?Underpriced? Alliance won?t go cheaply as lithium M&A hits the spotlight
Australia?s downstream gaining momentum
Right now, Australia has absolutely zero per cent share of the global lithium chemical market, but the Galaxy-Alliance deal is another step towards building the country?s downstream industry.
?I think [Galaxy] has desires to go further downstream as well, and Jiangxi [Ganfeng Lithium] already has that joint venture with Jiangxi Special Electric Motors, which is downstream, but there?s other things we can do as well,? Calderwood said.
The battery supply chain is a $2 trillion market opportunity, and a report released at the start of 2018 gave Australia about 18 months to two years to get cracking on building its downstream industry.
Over a year into that deadline, the federal government has established a new Future Batteries Industries Cooperative Research Centre (FBI CRC) in Western Australia.
The research partnership of 58 industry, academic and government partners will address industry-identified gaps in the battery industries value chain.
The goal is to expand battery minerals and chemicals production and develop opportunities for manufacturing batteries in Australia.
Good time to invest
Lowry says rapidly rising demand and the difficulty in bringing new lithium supply online supports his ?thesis? that the market is going to outgrow supply.
?Anyone who is interested in investing in the lithium market has a great opportunity now because share prices are very, very depressed,? he said.
?If you look at the market caps of some of the Australian companies, even the ?Big Four? companies, their market caps are very much down from where they were a couple of years ago.
?So if you?re interested in lithium, I would tell you now?s a good time to get in.?
One expert says at least US$12 billion ($17.3 billion) needs to be invested in new lithium projects by 2025 if the industry is to have any realistic hope of matching supply with demand.
US lithium expert Joe Lowry told delegates at the Latin America Downunder mining conference in Perth that the ?Big Four? global lithium producers ? SQM, Albemarle, Jiangxi Ganfeng Lithium and Tianqi ? could not alone meet 2025 lithium demand.
?Overall, the industry faces a lack of financing and needs to inject more than US$12 billion within five years to have a chance of meeting demand,? he said.
?This requirement is exacerbated further by known and emerging failures in lithium start-ups which have demonstrated a lack of necessary skillsets ? high profile failures that have discouraged sector investment.
?There will not be any significant lithium chemical oversupply anytime soon. While there have been many optimistic supply forecasts, recent results speak for themselves.?
Pfft. What lithium glut?
Lowry took aim at Morgan Stanley and other analysts that previously predicted a flood of new lithium supply would hit the market this year causing an oversupply and pushing down the price.
He dismissed the forecasts of oversupply as a myth.
?The ?myth? is driven by reports from ?big bank? analysts and supported by statements by Chilean regulator, CORFO, after its revised agreements allowing Albemarle and SQM to produce more material from the Atacama brine resource,? Lowry said.
?The reality is increasing production quickly is not so easy.?
Last year there was about 270,000 tonnes of lithium demand and Lowry estimates that will rise to about 1 million tonnes in 2025.
?It?s pretty much not argued anymore that e-mobility is happening ? whether it?s EVs or scooters or ferries in Scandinavia, the transition to e-mobility is on,? Lowry said.
?My numbers are actually some of the lower numbers out there.?
Battery-related lithium demand in 2018 accounted for 60 per cent, up from 25 per cent five years earlier.
?So this market is becoming a battery-related market. There?s really no question about that,? Lowry said.
But new lithium supply is hard to bring online and SQM, Albemarle, Jiangxi Ganfeng Lithium and Tianqi are likely only be able to maintain their 68 per cent market share, according to Lowry.
?Almost every lithium project that has ever started with optimism has taken three or four years longer to reach full capacity and that?s what we?re seeing,? he said.
?That means there?s a lot of juniors or smaller companies around the world that need to get financed and need to get moving.?
Subscribe to our daily newsletter
Join our small cap Facebook group
Follow us on Facebook or Twitter
Deal-making steps up a gear
Close on the heels of Wesfarmers? seminal $776m bid for Kidman Resources (ASX:KDR), Galaxy Resources (ASX:GXY) has tipped $22.5m into more junior producer Alliance Mineral Assets (ASX:A40) to become its largest shareholder.
The cash injection gives Galaxy a roughly 11.5 per cent interest, and a blocking stake, in Alliance, managing director Mark Calderwood told Stockhead.
Galaxy?s investment was part of a larger $32.5m placement at 20c per share, which also included $10m from a subsidiary of Jiangxi Special Electric Motor Co.
Jiangxi has about a 9.9 per cent stake in Alliance.
?I guess from [Galaxy?s] point of view it?s stopping us from being a target for someone else to come and grab, and we were the cheapest lithium miner in the market,? Calderwood said.
?Both Jiangxi and Galaxy are a lot bigger than we are, they?re both experts in their sectors so that?s good for us and it enables us to be cooperative in the future.
?Both parties have either a blocking stake or almost a blocking stake.?
READ: ?Underpriced? Alliance won?t go cheaply as lithium M&A hits the spotlight
Australia?s downstream gaining momentum
Right now, Australia has absolutely zero per cent share of the global lithium chemical market, but the Galaxy-Alliance deal is another step towards building the country?s downstream industry.
?I think [Galaxy] has desires to go further downstream as well, and Jiangxi [Ganfeng Lithium] already has that joint venture with Jiangxi Special Electric Motors, which is downstream, but there?s other things we can do as well,? Calderwood said.
The battery supply chain is a $2 trillion market opportunity, and a report released at the start of 2018 gave Australia about 18 months to two years to get cracking on building its downstream industry.
Over a year into that deadline, the federal government has established a new Future Batteries Industries Cooperative Research Centre (FBI CRC) in Western Australia.
The research partnership of 58 industry, academic and government partners will address industry-identified gaps in the battery industries value chain.
The goal is to expand battery minerals and chemicals production and develop opportunities for manufacturing batteries in Australia.
Good time to invest
Lowry says rapidly rising demand and the difficulty in bringing new lithium supply online supports his ?thesis? that the market is going to outgrow supply.
?Anyone who is interested in investing in the lithium market has a great opportunity now because share prices are very, very depressed,? he said.
?If you look at the market caps of some of the Australian companies, even the ?Big Four? companies, their market caps are very much down from where they were a couple of years ago.
?So if you?re interested in lithium, I would tell you now?s a good time to get in.?
Bye bye :)
eric998 ( Date: 16-May-2019 15:05) Posted:
|
if those who bought can share who are the sellers and those who sold tell us who are the buyers..
easywin ( Date: 16-May-2019 14:53) Posted:
|
Dow future is red, probably caused of power lost.
Kongsi has not had an earning since listing in 2014.
Year after year it is in the red. In fact last year was the worst, eps at almost minus 4.9cts.
Wonder what can the strategic investor do to change its yearly loss into profit.
Worse is the surplus of lithium supplies that is expected by some analysts. Imo, not so rosy years ahead.
Year after year it is in the red. In fact last year was the worst, eps at almost minus 4.9cts.
Wonder what can the strategic investor do to change its yearly loss into profit.
Worse is the surplus of lithium supplies that is expected by some analysts. Imo, not so rosy years ahead.
risktaker ( Date: 16-May-2019 11:03) Posted:
|
let contra players out 1st
Due to contra players profit taking pullback a bit.
Past qtr they lost 10m.... with record production
As lithium demand cools thanx to Trump...Burwill is the only buyer so far for the lithium.... so this qtr.... ally will be burning cash yet again... u can easily estimate their revenue by their shipment.
1) mining operation
2) drilling operation
3) expenses paid to cannacord
If i remember Downstream lithium will only kick aug to oct period and it wont require as much lithium for start.....
2nd offtaker will take sometime to annc n dont expect high price...
With all these dilution...n loss making scenario ....
I believe we may see price hit below 15c ....
Unless major turn around the lithium sector or trump got impreach :)
Global warming is real n u need a world leader to lead the fight against climate change
As lithium demand cools thanx to Trump...Burwill is the only buyer so far for the lithium.... so this qtr.... ally will be burning cash yet again... u can easily estimate their revenue by their shipment.
1) mining operation
2) drilling operation
3) expenses paid to cannacord
If i remember Downstream lithium will only kick aug to oct period and it wont require as much lithium for start.....
2nd offtaker will take sometime to annc n dont expect high price...
With all these dilution...n loss making scenario ....
I believe we may see price hit below 15c ....
Unless major turn around the lithium sector or trump got impreach :)
Global warming is real n u need a world leader to lead the fight against climate change
Dilution too much... still gonna lose money
Asx open 23 and dropping to 21. Here so dropping since opening. Would be an absolute dumb to buy now. Dont see how it will go up
good opportunity now
easywin ( Date: 16-May-2019 08:35) Posted:
|
Price keep inching up!
Who&rsquo s would like to sell below placement price?
AttasBoss ( Date: 16-May-2019 08:35) Posted:
|
Super good news, price would definitely roll up fast and furious. Don&rsquo t miss the golden opportunity.
Shares dilution
Open 0.23 and will slowly drop. Everytime if there is a gap up after news, it will keep on sinking later on
Mpre share dilution. Dont see what's great about it
Hope this great news will send its share price soaring to $0.25.
SmallSmall ( Date: 16-May-2019 08:10) Posted:
|
Relisting... typo
SmallSmall ( Date: 16-May-2019 08:10) Posted:
|
Alliance Min now reposting at A$0.22 on ASX.
The share register of lithium miner Alliance Resources has changed markedly, with both cashed-up lithium rival Galaxy Resources and Chinese offtake partner Jiangte set to emerge with big stakes in the company.
Alliance has raised $32 million from the duo and is likely to emerge from a trading halt today.Galaxy, which has about $400m in cash to its name and which has been hunting for opportunities, is understood to have tipped in $22m, while Jiangte has contributed the remaining $10m.
The new shares have been priced at 20c apiece, the same price at which Alliance last traded before it went into a trading halt earlier this week.The exact stakes that each party will hold in Alliance will be confirmed today.
Galaxy is understood to have quietly built a stake in Alliance below the 5 per cent threshold at which public disclosure would be required. The new shares purchased by Galaxy represent about 7 per cent of the company&rsquo s enlarged equity base, suggesting Galaxy could emerge with as much as 12 per cent of Alliance.
Jiangte, which signed a memorandum of understanding over a proposed downstream lithium hydroxide processing plant with Alliance late last month, already held a 6.4 per cent stake in the miner and should lift its interest towards 10 per cent.
The funds will help Alliance retire the remaining debt it owes to hedge fund Tribeca.Alliance, which was formed through the merger of Tawana Resources and Singapore&rsquo s Alliance Mineral Assets, owns the Bald Hill lithium mine in Western Australia.
While the price of lithium and lithium miners have fallen in the past year, Galaxy&rsquo s commitment to Alliance, Wesfarmers&rsquo recent agreed takeover offer for Kidman Resources and Albemarle&rsquo s purchase of a 50 per cent stake in Mineral Resources&rsquo Wodgina mine shows that there is still plenty of corporate interest in the sector.
Alliance has raised $32 million from the duo and is likely to emerge from a trading halt today.Galaxy, which has about $400m in cash to its name and which has been hunting for opportunities, is understood to have tipped in $22m, while Jiangte has contributed the remaining $10m.
The new shares have been priced at 20c apiece, the same price at which Alliance last traded before it went into a trading halt earlier this week.The exact stakes that each party will hold in Alliance will be confirmed today.
Galaxy is understood to have quietly built a stake in Alliance below the 5 per cent threshold at which public disclosure would be required. The new shares purchased by Galaxy represent about 7 per cent of the company&rsquo s enlarged equity base, suggesting Galaxy could emerge with as much as 12 per cent of Alliance.
Jiangte, which signed a memorandum of understanding over a proposed downstream lithium hydroxide processing plant with Alliance late last month, already held a 6.4 per cent stake in the miner and should lift its interest towards 10 per cent.
The funds will help Alliance retire the remaining debt it owes to hedge fund Tribeca.Alliance, which was formed through the merger of Tawana Resources and Singapore&rsquo s Alliance Mineral Assets, owns the Bald Hill lithium mine in Western Australia.
While the price of lithium and lithium miners have fallen in the past year, Galaxy&rsquo s commitment to Alliance, Wesfarmers&rsquo recent agreed takeover offer for Kidman Resources and Albemarle&rsquo s purchase of a 50 per cent stake in Mineral Resources&rsquo Wodgina mine shows that there is still plenty of corporate interest in the sector.