It has been yet another positive day of trade for Australia's leading lithium miners.
The highlight of the day in my opinion is the Kidman Resources Ltd (ASX: KDR) share price and its 8% jump to an all-time high of $2.16.
Elsewhere, the shares of Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS), Mineral Resources Limited (ASX: MIN), and Argosy Minerals Limited (ASX: AGY) are all higher and closing in on new highs of their own.
What happened?
Today's gains appear to be down to investors becoming increasingly bullish on resources shares and lithium miners in particular.
Lithium miners have found favour with investors over the last 12 months due to the growing demand for the metal to be used in the batteries of electric vehicles and renewable energy.
While supply is increasing as well, so far it has been unable to keep up with demand. Pleasingly for the lithium miners and their respective shareholders, this looks likely to be the case for some time to come according to a recent presentation from Orocobre Limited (ASX: ORE).
Orocobre expects pricing for the June half of 2018 to be approximately 25% higher than prices received in the December half of 2017. Furthermore, its management team stated their belief that contract prices will continue to rise in all markets for the foreseeable future.
Ultimately I expect this to lead to bumper profit growth for a lot of these lithium miners and potentially even a fully franked dividend in the near future.
While I would suggest investors wait for a pull-back before investing, those that are prepared to buy and hold for a number of years could still do very well with an investment today.
My pick of the bunch remains Galaxy Resources, closely followed by Mineral Resources.
