'6 to 9 months': 2 ASX lithium shares just waiting to break out

Experts reckon there are some absolute bargains in lithium land right now.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX lithium shares have been flogged to death as an investment theme the last few years, so are there any real bargains left any more?

It may surprise you that there definitely are.

The global price for the battery ingredient has significantly cooled off this year, meaning valuations for many lithium producers are down from a year ago.

But in the longer run, many experts say there will be plenty of demand for the mineral as the transition to net zero will necessitate the production of more and more batteries.

Here are two lithium stocks that Argonaut associate dealer Harrison Massey likes right now:

Two kids in superhero capes.

Image source: Getty Images

Sitting on massive piles on lithium

Massey is bullish on Global Lithium Resources Ltd (ASX: GL1), which is an exploration outfit that owns the Manna and Marble Bar sites in Western Australia.

"Global Lithium has a combined mineral resource of 54 million tonnes at 1.09% lithium oxide," Massey told The Bull.

"The company is undertaking a 50,000-metre reverse circulation and diamond drilling program, which could further upgrade the mineral resource estimate in the first half of fiscal year 2024."

Massey is far from the only fan of Global Lithium.

"Mineral Resources Ltd (ASX: MIN) owns 9.6% of the shares on issue."

And according to CMC Markets, all six analysts that currently cover the stock rate it as a buy.

The Global Lithium stock price has almost halved from a year ago, but perhaps that's part of the attraction.

Nine analysts love this ASX lithium stock

Patriot Battery Metals Inc CDI (ASX: PMT), which is Massey's second pick, is a Canadian company listed on the ASX.

Despite the freefalling lithium price, this year has been a milestone for Patriot Battery Metals.

"Earlier this year, the company announced a significant maiden resource of 109.2 million tonnes at 1.42% lithium oxide, which put the asset on a globally significant scale."

Last month saw exciting news that could potentially turn into a massive catalyst.

"In October, the company announced the discovery of a new mineralised high-grade zone called CV13, with sample sizes of between 3% to 5% lithium oxide near the surface," said Massey.

"We expect Patriot to release an array of assay results in the next six to nine months, which could further increase its resource estimate."

Massey's peers are also in unanimous agreement on this one too.

All nine analysts that research Patriot Battery Metals are rating the stock as a buy, as shown on CMC Markets.

The Patriot Battery Metals price has dropped almost 20% over the past 12 months.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

This ASX lithium company could more than double in value one broker says, after a "transformational" funding deal

This company will be cashed up after this new agreement goes through.

Read more »

A woman stands in a field and raises her arms to welcome a golden sunset.
Resources Shares

Newmont shares jump again as record cash flow and buyback boost sentiment

Newmont shares rise after reporting record cash flow and expanded buybacks.

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Resources Shares

Newmont declares quarterly dividend for ASX investors

Newmont Corporation declares a US$0.26 quarterly dividend for ASX investors, with payment to follow in June 2026.

Read more »

Lakes in the form of footsteps among the green trees, indicating steps towards a healthier planet.
Resources Shares

Fortescue invests $680m in Pilbara Green Energy Project

Fortescue commits US$680 million to expand Pilbara green energy infrastructure, aiming to meet increasing industrial and data centre demand.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Resources Shares

IGO lowers Greenbushes guidance

IGO's Q3 results reveal record Nova output, while maintaining focus on operational improvements and long-term battery minerals growth.

Read more »

Machinery at a mine site.
Resources Shares

PLS Group provides March quarter earnings update

PLS Group lifted quarterly revenue and cash on the back of higher lithium prices, while maintaining disciplined cost control and…

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Share Market News

5 years ago, $5,000 bought 118 BHP shares. How many would it buy now?

The mining giant also pays its shareholders very attractive passive income.

Read more »

Sell buy and hold on a digital screen with a man pointing at the sell square.
Broker Notes

After more than quadrupling investors' money in a year, are PLS shares still a buy?

A leading analyst delivers his outlook for the soaring PLS share price.

Read more »