A new lithium share started trading on the ASX Monday under the ticker A11.
Atlantic Lithium Ltd (ASX: A11) shares listed yesterday at 58 cents before dropping to an intraday low of 52 cents. The ASX newcomer then leapt back to finish Monday's session right back where it started.
Tuesday, however, the market was not feeling so generous. Atlantic Lithium shares again opened the session at 58 cents but ended today's trade 3.45% lower at 56 cents.
Let's take a look at this lithium company in more detail.
Atlantic Lithium is a lithium explorer developing its Ewoyaa Lithium Project in Ghana, West Africa.
Atlantic Lithium's initial public offering consisted of 22,850,000 shares and the company is also listed on the AIM sub-market of the London Stock Exchange under the ticker LSE: ALL. Atlantic is aiming to produce lithium spodumene pegmatite at the Ewoyaa Project. The company has a US$103 million funding agreement with Piedmont Lithium Inc (ASX: PLL) for the development of this project.
On Friday, Atlantic provided an exploration update on the project. The company has completed a pre-feasibility study showing "significant profitability potential".
The company has declared a maiden ore reserve of 18.9Mt at 1.24% lithium oxide. The mine has an estimated 12.5-year life span and, according to the company, has the potential to generate US$4.84 billion in revenue. The capital cost estimate is US$125 million.
Atlantic Lithium has a market capitalisation of more than $345 million based on the current share price.
Commenting on the project and ASX listing, executive chairman Neil Herbert said:
We believe that trading on the ASX will extend the Company's shareholder base, enable wider trading and offer greater liquidity for Atlantic Lithium shares. Lithium companies listed on the ASX have attracted significant investor interest of late.
As such, we believe that the listing will help enable the Company to achieve a more attractive valuation in respect of its industry-leading Ewoyaa Project.