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

About the author:

Max Vickerson
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By Max Vickerson
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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

Growth stocks have had a choppy ride since the onset of the pandemicSource: Morgans, Factset

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