Mining – lithium pure plays: Key producers being weighed down by weaker prices
About the author:
- Author name:
- By Max Vickerson
- Job title:
- Date posted:
- 05 October 2023, 7:30 AM
- Sectors Covered:
- Industrials, New Energy
- Despite continued growth in EV production, lithium prices continue to weaken since the July – August period with spot Chinese prices falling the most.
- This has impacted the share prices of key pure play producers like PLS and AKE with both stocks declining over the same time frame.
- We continue to see value in PLS and AKE with the capability to produce attractive cash flow even at more moderate lithium price levels.
- In this report we update our forecasts for CXO, LTR, and PLS. We make no changes to AKE.
Figure 1: Three-month relative sector performance
Source: Morgans, Factset
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