Mining – lithium pure plays: Key producers being weighed down by weaker prices

About the author:

Author name:

By Max Vickerson

Job title:

Analyst

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.

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Figure 1: Three-month relative sector performance

Source: Morgans, Factset

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