The best ASX lithium stocks based on year-to-date gains are benefiting from improved conditions for the lithium market.
Click here to read the previous best ASX lithium stocks article.
The lithium market experienced another interesting year in 2020, but overall the battery metal demonstrated resilience in the wake of COVID-19.
Lithium prices nearly doubled in the first quarter of 2021, and the positive industry outlook has boosted lithium-mining stocks, including on the Australian Securities Exchange (ASX).
Here the Investing News Network takes a look at the five ASX lithium stocks with the biggest year-to-date gains. The list below was generated using TradingView’s stock screener on May 10, 2021, and includes companies that had market caps above AU$50 million at that time.
The five companies listed here trade on the ASX, but have assets across many continents, from Australia to the Americas to Europe. Read on to find out more about each of them.
1. Sayona Mining (ASX:SYA)
Year-to-date gain: 323.2 percent; current share price: AU$0.04
Sayona Mining is an emerging lithium miner with a pipeline of projects aimed at sourcing and developing the raw materials required for lithium-ion batteries. The company operates several projects in Quebec, Canada, and Western Australia. Sayona’s projects in Quebec include its flagship Authier lithium project and the Tansim lithium project. In Western Australia, the company holds a large land package in the Pilbara region that is prospective for both gold and lithium.
In January, Sayona entered into a partnership with Piedmont Lithium (ASX:PLL,NASDAQ:PLL). Under the deal, Piedmont will take a 19.99 percent position in Sayona and a 25 percent position in its subsidiary Sayona Quebec for an investment of US$12 million. The transaction also includes a binding supply agreement for at least 50 percent of Sayona Quebec’s planned spodumene concentrate production.
Sayona completed a NI 43-101 technical report in March that shows the high exploration potential for lithium pegmatites across the Tansim project. The company has planned a C$1.6 million Phase 1 resource drilling program at Tansim’s Viau-Dallaire and Viau prospects.
2. Hawkstone Mining (ASX:HWK)
Year-to-date gain: 300 percent; current share price: AU$0.04
Hawkstone Mining has a diversified portfolio of US asset, with gold, copper and lithium projects in several of the country’s states. The company’s main lithium asset is the Arizona-based Big Sandy project, which Hawkstone says has a JORC resource of 320,800 tonnes of lithium carbonate equivalent.
There have been a number of pieces of news from Big Sandy in the last couple of months, with Hawkstone reporting the production of battery-grade lithium carbonate at 99.7 percent purity in early March. Later that the month, the company announced the production of battery-grade lithium carbonate at 99.8 percent purity from Big Sandy.
Year-to-date gain: 256.16 percent; current share price: AU$0.26
Lake Resources has centred its efforts on producing high-purity, sustainable lithium at a low cost from its three 100 percent owned lithium brine projects. Located in Argentina, the projects sit within one of the largest wholly owned land packages among the largest players within the Lithium Triangle.
The exploration and development company’s Q1 activities report shows that it was a busy period. Among other accomplishments, Lake Resource said that its 99.97 percent battery-quality lithium carbonate performed well in tests conducted by Novonix. The company also completed a refreshed prefeasibility study for its Kachi project and began a definitive feasibility study for the asset.
4. Jindalee Resources (ASX:JRL)
Year-to-date gain: 237.11 percent; current share price: AU$2.68
Jindalee Resources has a number of exploration projects targeting a variety of commodities in Australia, including diamonds, iron ore, gold, nickel and lithium; it also has two lithium projects in the US.
In mid-March, the diversified explorer raised AU$9 million to advance its McDermitt lithium project in Oregon, now considered the largest lithium resource in the US. McDermitt has a combined indicated and inferred mineral resource of 1.43 billion tonnes at 1,320 parts per million lithium, giving it a total of 10.1 million tonnes of lithium carbonate equivalent.
5. Vulcan Energy Resources (ASX:VUL)
Year-to-date gain: 186.59 percent; current share price: AU$7.91
Vulcan Energy Resources is aiming to become the world’s first zero carbon lithium producer for electric vehicle batteries. With a focus on Europe, the company wants to produce the world’s first premium, battery-quality, zero carbon lithium hydroxide by harnessing renewable geothermal energy to drive lithium production without using evaporation, mining or fossil fuels.
The company is developing its deep geothermal and lithium brine resource in Germany’s Upper Rhine Valley. Vulcan will use its unique zero carbon lithium process to produce both renewable geothermal energy and lithium hydroxide from the same deep brine source.
The total combined resource for Upper Rhine Valley is estimated at 16.19 million tonnes of lithium carbonate equivalent at a grade of 181 milligrams per litre lithium in the indicated and inferred categories. Ninety percent of that amount is in the inferred resource category, and the company says the property is the largest JORC lithium resource in Europe, with further growth potential.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Lake Resources and Piedmont Lithium are clients of the Investing News Network. This article is not paid-for content.