The Pullback in Lithium Stocks Is Now Greatly Overdone

August 31, 2023 -

The pullback in lithium stocks is overdone. For one, the supply-demand issue is only expected to get worse. According to CNBC, “The world could face a shortage for lithium as demand for the metal ramps up, with some analysts forecasting that it could come as soon as 2025.” BMI, a Fitch Solutions research unit, was among those that predict a lithium supply deficit by 2025. In a recently published report, BMI largely attributed the deficit to China’s lithium demand exceeding that of its supply, they added. Also, by the end of 2025, some analysts say we could see a deficit of 40,000 to 60,000 tonnes by 2025, and a wider deficit of about 768,000 by 2030. That could create a good deal of opportunity for Lancaster Resources Inc. (CSE: LCR) (OTC: LANRF), Patriot Battery Metals (TSXV: PMET) (OTCQX: PMETF), Q2 Metals (TSXV: QTWO) (OTCQB: QUEXF), Albemarle Corporation (NYSE: ALB), Lithium Americas (NYSE: LAC) (TSX: LAC).

Look at Lancaster Resources Inc. (CSE: LCR) (OTC: LANRF), For Example

Lancaster Resources Inc. announced that on August 29, 2023, it entered into a long form definitive agreement to replace the Letter of Intent entered into on July 23, 2023 to acquire 100% of the Trans Taiga Lithium Project in the Eeyou Istchee James Bay region of Quebec. The Property, hosting several historical pegmatite samples, lies ~120 km west of Patriot Battery Metals’ (TSXV: PMET) Corvette Project, ~74 km west of Winsome Resources’ (ASX: WR1) Cancet Project, and a few kilometers east of Loyal Lithium’s (ASX: LLI) Brisk Lithium Project.

Other related developments from around the markets include:

Patriot Battery Metals provided an operations update on the mineral exploration and development of its Corvette Property, host to the CV5 Spodumene Pegmatite. The CV5 Spodumene Pegmatite, the 8th largest lithium pegmatite in the world, is located approximately 13.5 km south of the regional and all‑weather Trans-Taiga Road and powerline infrastructure corridor, and within 50 km of the La-Grande 4 (LG4) hydroelectric dam complex. The Company has successfully resumed its mineral exploration and development programs as of early August 2023, as the wildfires in the region gradually abate. This includes on-site community engagement, environmental baseline field work, camp construction, road access upgrades, surface exploration, and core drilling. It is important to note that the wildfires have delayed the Company’s on-site activities during the summer months, but fortunately, no equipment or property at the Property, camp site and laydown or at the Mirage Lodge have been lost.

Q2 Metals announced the mapping/prospecting and rock sampling results of its abridged exploration work program at the Mia Lithium Property located in the Eeyou Istchee James Bay Territory of Quebec. On June 5, the Company was mandated by the Quebec Ministry of Natural Resources and Forests to pause all exploration related activities and depart from camp due to the ongoing wildfire status of northern Quebec. As a result, the mapping and sampling portion of the field work lasted only two days. Despite the pause to the field work, the Company is encouraged by the results of the work completed and plans to execute an ambitious work program of expedited mapping, sampling and drill-testing as soon as conditions allow.

Albemarle announced its results for the second quarter. "We achieved $2.4 billion in net sales, up 60% from prior year, primarily driven by higher prices and volumes in our Energy Storage business," commented Albemarle CEO Kent Masters. "We remain confident in the long-term outlook for our businesses and are increasing our full-year 2023 net sales and adjusted EBITDA outlook based on the recent increase in lithium market prices. Our investments in future capacity are on track, with the Salar Yield Improvement Project mechanically complete and the Meishan project on schedule for early 2024 mechanical completion."

Lithium Americas announced that shareholders have voted in favor of the separation of the Company into Lithium Americas (Argentina) Corp. and a new Lithium Americas Corp. pursuant to a statutory plan of arrangement at the Company’s annual general and special meeting of shareholders held. The Separation was approved by 98.85% of the votes cast by shareholders present or represented by proxy at the Meeting, as well as 98.78% of the votes cast excluding those of such shareholders who are required to be excluded pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Lancaster Resources Inc by Lancaster Resources Inc

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Ty Hoffer
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