After a tumultuous 2023 that saw prices for lithium carbonate shed 80 percent from its January start value, Q1 2024 was much less volatile. Starting the year at US$13,377.44 per ton, lithium carbonate prices ended the three-month period in the US$14,874,31 price range, representing an 11 percent increase.
Strong electric vehicle sales numbers in January helped sustain lithium prices through January and February. Prices began to climb higher at the end of the month and through March when values reached a quarterly high of US$16,109 per metric ton (MT). The rally was attributed to news out of China that noted that lithium demand for batteries and energy storage was locked in an “irreversible” growth trend.
‘If lithium prices can stabilize between 80,000 and 150,000 yuan, leaving upstream and downstream (companies) along the industry chain certain profit, it might be the best development environment for the whole industry,’ Li Liangbin, chairman at Ganfeng Lithium (OTC Pink:GNENF,HKEX:SZSE:002460) told Reuters. That currently converts to about US$11,050 to US$20,725.
Against that backdrop several Canada-listed lithium companies saw share price growth during the first quarter of the year. This list was created on April 10, 2024, using TradingView‘s stock screener, and all data was current at that time. Only companies with market caps above C$10 million for TSX and TSXV and above C$5 million for CSE are included.
TSX and TSXV lithium stocks
1. Century Lithium (TSXV:LCE)
Year-to-date gain: 78 percent; market cap: C$131.49 million; current share price C$0.89
US-focused Century Lithium is currently advancing its Clayton Valley lithium project in West-central Nevada. The company is also engaged in the pilot testing phase at its lithium extraction facility in Amargosa Valley, Nevada, which will process material from the lithium-bearing claystone deposit.
Shares of Century Lithium began the year trading at C$0.48 range and rose to a quarterly high of C$0.80 on March 27.
While the company made no announcements during Q1, some of the positive price momentum likely resulted from two press releases from December 2023. The first provided an update on the company’s ongoing feasibility study for the Clayton Valley project.
“This comprehensive study covers all areas of the lithium extraction process from shallow surface mining of lithium-bearing clay to on-site production of battery-grade lithium carbonate,” it read. “Target production for the study follows that of the project’s earlier Pre-Feasibility Study, which was based on a mill feed of 15,000 tonnes per day and average annual output of 27,000 tonnes per year of lithium carbonate equivalent.”
The second December announcement provided an overview of work at the extraction facility. During test work at the pilot plant the company achieved increased lithium grades with an average grade of 7.5 grams/liter lithium.
“This increase in concentration was attributed to the integration of Koch Technology Solutions Li-ProTM equipment into the direct lithium extraction (DLE) area,” the company said
2. Lithium Chile (TSXV:LITH)
Year-to-date gain: 50.94 percent; market cap: C$164.97 million; current share price: C$0.80
South America-focused Lithium Chile owns several lithium land packages in Chile and Argentina. Presently, the explorer is working to delineate the deposit at its Salar de Arizaro property in Argentina.
Following price volatility in January and early February, shares of Lithium Chile made a 32 percent climb between January 1, 2024, and the end of February.
On February 28, Lithium Chile released “favorable” results from a new drill hole on the northeastern side of the Salar de Arizaro claim.
Hole ARDDH-08 was drilled to a depth of 606 meters, encountering a brine-rich, sandy formation at 200 meters. Samples were sent to Alex Stewart Laboratory in Jujuy, Argentina, revealing lithium grades of 180 mg/l at 50 meters and 690 mg/l at 200 meters, the statement read.
In early March, Lithium Chile penned a farm-In agreement with European mining company Eramet (EPA:ERA). The agreement aims to expedite exploration efforts on four Chilean properties– Llamara, Aguilar, Rio Salado, and Aquas Caliente– with a total land area exceeding 40,000 hectares
3. Power Metals (TSXV:PWM)
Year-to-date gain: 24 percent; market cap: C$55.22 million; current share price: C$0.35
Exploration company Power Metals holds a portfolio of diversified assets in Ontario and Quebec, Canada.
In late February, Power Metals commenced a winter drill program at its Case Lake property in northeastern Ontario. The program was designed to expand and define lithium/cesium/tantalum (LCT) mineralization, building on previous work which revealed high-grade lithium and cesium mineralization.
Company shares traded flatly for most of Q1 locked in the C$0.27 range. Prices began to rise in mid-March and hit a three-month high of C$0.43 on March 31.
The 59 percent uptick coincided with news that Power Metals was
acquiring the 7,000-hectare Pelletier project, consisting of 337 mineral claims in northeast Ontario.
According to the company, the project features lithium/cesium/tantalum (LCT) potential, with peraluminous S-type pegmatitic granites intruding into metasedimentary and amphibolite formations.
4. Q2 Metals (TSXV:QTWO)
Year-to-date gain: 24 percent; market cap: C$27.71 million; current share price: C$0.31
Mineral exploration firm Q2 Metals is actively exploring its flagship Mia lithium property in the Eeyou Istchee James Bay Territory of Quebec, Canada. The property contains the Mia Trend, spanning over 10 kilometers.
Included in the Q2 portfolio is the Stellar lithium property, comprising 77 claims and located six kilometers north of the Mia property.
Company shares were trading below C$0.20 for most of January and February. On February 27, the price rose rapidly climbing from C$0.19 on February 26 to C$0.45 to end the month.
The growth corresponds with the company announcement that a winter drill property was complete.
“The winter drill program at the Mia Property has confirmed the spodumene mineralized pegmatite at the western end of the Mia Trend,” said Neil McCallum Q2 Metals VP Exploration. “The drilling has successfully evaluated a large portion of the Mia Trend that had been explored at the surface.”
Days later Q2 reported the acquisition of the 11,374-hectare Cisco lithium property also located in the Eeyou Istchee James Bay region.
The upward trend continued, and shares reached a Q1 high of C$0.51 on March 4, 2024.
5. Volt Lithium (TSXV:VLT)
Year-to-date gain: 23.91 percent; market cap: C$37.14 million; current share price: C$0.28
Volt is a lithium development and technology company aiming to become a premier North American lithium producer utilizing its unique technology to extract lithium from oilfield brine.
In late January Volt made its first announcement of 2024, highlighting the company’s success producing 99.5 percent battery-grade lithium carbonate. The achievement was made at the company’s demonstration plant in Calgary, Alberta.
Commenting on the milestone, company CEO, Alex Wylie expressed his excitement.
“The Volt team continues to advance our DLE capabilities at our demonstration plant and showcased our ability to transform oilfield brine into a commercially saleable grade of lithium carbonate,’ he said. “Bringing the full-cycle process in-house greatly reduces the cost to produce lithium carbonate, which is expected to enhance margins and position Volt as a low-cost operator.”
The cost savings were reiterated in late February when the company announced a 64 percent reduction in full-cycle DLE operating costs at the Calgary-based demonstration plant.
Shares marked a Q1 high of C$0.27 on March 12.
CSE lithium stocks
1. Foremost Lithium (CSE:FAT)
Year-to-date gain: 18.69 percent; market cap: C$19.17 million; current share price: C$4
Foremost Lithium is an exploration company with hard rock lithium properties in Snow Lake, Manitoba, and Lac Simard South, Quebec. Included in the company’s portfolio is the Winston gold/silver property in New Mexico, US.
In January, Foremost received its third C$300,000 grant from the Manitoba Mineral Development Fund. The monies have been earmarked for continued exploration and drill work at the Snow Lake property.
Throughout the first quarter Foremost released several updates including, receiving a multi-year work permit for the Jean Lake lithium/gold project in Manitoba, the start of a drill program at the Zoro lithium property in the Snow Lake region and the of filing an application for C$10 million from Canada’s Critical Mineral Infrastructure fund.
Shares of the company hit a Q1 high of C$4.51 in late February when the company released some promising intercepts from the Zoro property drill program.
“The presence of spodumene and the length of pegmatite encountered in multiple holes, highlighted by over 32-meters of spodumene-bearing pegmatite hit in one hole, are very positive in terms of the potential for our maiden resource to now grow in significant scale,” Jason Barnard, president and CEO of Foremost Lithium, said in a February 27 statement.
“As drilling progresses, the focus will continue to build resource to the south of Dyke 1, a promising new uncharted area, which has confirmed spodumene pegmatite as drilling progresses.”
2. Quantum Battery Metals (CSE:QBAT)
Year-to-date gain: 5.56 percent; market cap: C$6.9 million; current share price: C$0.19
Mineral exploration company Quantum Battery Metals is focused on identifying lithium and cobalt deposits in Canada.
In mid-January the company announced it was actively looking to “acquire additional properties to expand on its portfolio to help address the world’s shortage in technology metals.”
The statement continued: “There is an increasing demand for metals as the world is transitioning to a low-carbon economy and global conflicts continue to arise that require massive amounts of metals for producing batteries, clean energy technologies, and national defense applications.”
Subsequently, Quantum reported submitting a letter of intent to acquire the Copper Coffer property in Newfoundland, Canada.
Company shares reached a first quarter high of C$0.20 on March 17, and ended the three-month session in the same range.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
