In morning trade, the ASX lithium stock is up 19% to 12.5 cents.

Why is this ASX lithium stock surging?

Investors have been fighting to get hold of the company's shares this morning after it announced a cornerstone binding offtake term sheet for the 100% owned Paradox Basin Lithium Project in the United States.

According to the release, Anson has completed negotiations with LG Energy Solutions and executed the first offtake term sheet for the supply of battery-grade lithium carbonate.

The release reveals that the offtake term sheet provides for the supply of up to 4,000 dry metric tonnes per annum (tpa) of battery grade lithium carbonate produced at the project. This is expected to commence in 2027 and represents approximately 40% of the project's start-up production capacity of ~10,000tpa.

LG Energy Solution is a global leader in delivering advanced lithium-ion batteries for electric vehicles, mobility and IT applications, and energy storage systems.

Management believes it is an ideal partner for the ASX lithium stock with its diversified customer base of tier one OEMs and strong investment in expanding production in North America. It highlights that LG Energy Solution has eight facilities currently operating or under construction in North America.

What's next?

The offtake term sheet will become effective subject to Anson Resources making a final investment decision, the commencement of commercial production, and offtake product qualification with LG Energy Solution.

But it may not just be LG Energy Solution buying the company's lithium. Management advised that it continues to progress negotiations with other potential tier one global customers, which would complement its offtake strategy of supplying 80% to 90% of initial production under long-term agreements.

The ASX lithium stock's executive chairman and managing director, Bruce Richardson, commented:

Anson has recognized the unstoppable paradigm shift in the US supply chain for electric vehicle battery materials and the key role that Korean and Japanese battery manufacturers are playing. The Inflation Reduction Act and other US policy initiatives have resulted in significant investment in new battery manufacturing in North America to meet the continued growth in demand for electric vehicles in the US.

This shift in manufacturing investment has led to an increased demand for lithium produced in the US, not only to shorten supply chains geographically but also increase US content of electric vehicle batteries and electric vehicles, to meet IRA incentive requirements. Anson identified this change, targeted its offtake marketing activities to the companies that have made these investments into North America and in particular, the US where Anson's development work in the Paradox Basin in Southern Utah is strategically positioned.

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In morning trade, the ASX lithium stock is up 10% to 16 cents.

Why are investors buying Anson Resources stock?

Investors have been buying the company's shares after it released an update on the Green River Lithium Project in the Paradox Basin in Utah, USA. This project covers an area of 106.2km squared and is situated just 50kms northwest of the company's Paradox Lithium Project.

According to the release, a detailed review of the project has confirmed its exceptional geological characteristics and high-level prospectivity.

Positive geological attributes include high recorded thickness of brine-bearing rock units, high porosity and permeability, and three faults cross cutting the flow of brine from north to south.

The company also highlights that the Green River Project area is surrounded by key existing infrastructure including the national rail network, interstate road system, gas and power, and access to the Green River.

Management commentary

The ASX lithium stock's executive chairman and CEO, Bruce Richardson, sounds excited about the potential of the project. He said:

Anson is excited about the prospects for the Green River Lithium Project. Apart from the world class infrastructure that surrounds the private property that the Company recently purchased and the simplified approval process that goes with that, the geology studies and modelling that has been done indicate similar characteristics to the Paradox Lithium Project, including high pressure, porosity, and permeability.

Anson has extended the flow model from the Paradox to the Green River area and has identified three faults that may act as traps for the concentration of lithium, acting in a similar way to Robert's Rupture at the Paradox. The Company is preparing an exploration program to test this theory by obtaining brine samples from the Green River Lithium Project area for assay and JORC resource calculation as the next step in developing this opportunity further creating shareholder value.

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The lithium share closed up 3.3% yesterday at 15.5 cents per share. At the time of writing, shares are trading for 17 cents apiece, up 9.7%.

Here's what's spurring renewed interest in Anson Resources.

What did the ASX lithium stock report?

Investors are bidding up the ASX lithium stock after the company reported on its first battery-grade lithium production.

The battery-grade lithium carbonate product was produced from brines at its Paradox Lithium Project in the US state of Utah.

Anson Resources said this "key milestone" will enable it to provide product samples to potential off-take original equipment manufacturer (OEM) partners. That includes electric vehicles and lithium-ion battery manufacturers.

The battery-grade lithium was produced at Anson's sample demonstration plant located at its newly established Lithium Innovation Centre in Florida. The ASX lithium stock said it plans to gradually increase production from the demonstration plant to supply potential off-take partners.

Over the past month, Anson has produced 33 gallons of eluate from 99 gallons of raw brine sourced from the Paradox Project.

If all goes to plan, the ASX lithium stock will be moving the sample demonstration plant to its proposed production site at the Paradox Project. This will see the company using brine directly from the extraction wells.

Anson said this will enable continuous operation and increase production from the demonstration plant "to meet expected demand for increased sample sizes from potential off-take partners for evaluation purposes".

The lithium carbonate was produced utilising the flowsheet designed for Anson's lithium-rich brines by its direct lithium extraction partner, Sunresin.

Anson Resources share price snapshot

With today's intraday gains factored in, the Anson Resources share price is up 40% since this time last year.

The ASX lithium stock remains down 7% in 2023.

The post This ASX lithium stock trading near 52-week lows just celebrated its first battery-grade lithium production appeared first on The Motley Fool Australia.

While concerns over a potential short-term oversupply of the battery-critical metal has pressured lithium stocks more recently, that hasn't stopped one-time short seller Tim Murray from joining forces with Anson Resources Ltd (ASX: ASN).

ASX lithium share may have found 'the Holy Grail of mining'

Murray, the former managing partner of J Capital, an activist short seller, was amongst the loudest critics of the lithium boom and wrote reports highlighting why he thought a number of ASX lithium shares were on shaky ground.

Now he's singing a slightly different tune, after signing on with Anson Resources in January as the miner's chief operating officer (COO).

To be clear, he's not bullish on all ASX lithium shares. But he highlights the potential for Anson Resources to use direct lithium extraction (DLE) to produce lithium in a far more environmentally friendly way than conventional methods.

"It's sort of like the Holy Grail in lithium mining," Murray said (courtesy of The Australian Financial Review).

Murray said the standard process used to produce lithium to make batteries "involves a lot of waste" with evaporation ponds.

According to Murray:

It's dirty, there's lots of water and chemical usage, lots of coal power too. But this is different, that's why it's so attractive because you get green lithium through this process. That's how I went from sceptic to believer.

Anson Resources' core asset is the Paradox Lithium Project in the US state of Utah.

But there's a long road ahead before the miner realises any potentially successful DLE production. The company had $45 million in cash as at 31 December, and forecasts it will need more than $700 million to get Paradox up and running.

However, Murray pointed to Anson's agreement with China-based Sunresin to license its proven DLE technology as giving the ASX lithium share a big edge over its rivals.

"Anson is way ahead of other companies. Sunresin is a big deal. A lot of other players are just a few mates in a shed tinkering with some test tubes," he said (quoted by the AFR).

As part of the S&P Dow Jones Indices quarterly rebalance of the S&P/ASX Indices, Anson resources will be added to the All Ordinaries Index (ASX: XAO) next Monday, 20 March.

Anson Resources share price snapshot

As you can see on the chart below, the ASX lithium share has been a strong performer over the past 12 months, up 75%.

The stock is up 17% so far in 2023.

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Every three months, S&P Dow Jones Indices announces its quarterly rebalance of the S&P/ASX Indices. When this occurs, shares move into and out of particularly indices.

On Friday, the index solutions company released its latest rebalance and revealed that the All Ordinaries index will be welcoming some new additions.

Among the additions are a total of five ASX lithium shares.

Which ASX lithium shares are joining the All Ordinaries index?

The five ASX lithium shares that will join the widely followed All Ordinaries index at the rebalance on 20 March are as follows:

Anson Resources Ltd (ASX: ASN)

Anson Resources is a junior mineral resources company with a portfolio of minerals projects in key demand-driven commodities. Its core asset is the Paradox Lithium Project in Utah, United States.

Atlantic Lithium Ltd (ASX: A11)

Atlantic Lithium is an African-focused lithium exploration and development company aiming to deliver Ghana's first lithium mine. The company's flagship project is the Ewoyaa Project, which is a significant lithium spodumene pegmatite discovery.

Latin Resources Ltd (ASX: LRS)

Latin Resources is a mineral exploration company with projects in South America and Australia. It notes that it is developing mineral projects in commodities that progress global efforts towards net zero emissions. Its flagship project is the Salinas Lithium Project in the pro-mining district of Minas Gerais, Brazil.

Lithium Power International Ltd (ASX: LPI)

Lithium Power International is a pure-play lithium explorer focused on the development of Chile's next sustainable high-grade lithium mine. It also has two hard-rock projects in Western Australia. One of which is adjacent to Greenbushes, the world's largest hard rock Lithium mine owned by Tianqi and Albemarle.

Red Dirt Metals Ltd (ASX: RDT)

Red Dirt Metals is a Western Australian exploration and development company aiming to bring high-quality, lithium-bearing pegmatite deposits into production. It owns 100% of the Yinnetharra Lithium Project in the Gascoyne region of Western Australia.

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There's market-leader Pilbara Minerals Ltd (ASX: PLS), which is currently asking $4.40 a share at the time of writing:

Then there are other lithium leaders like Liontown Resources Ltd (ASX: LTR). Liontown has a lower share price than Pilbara but is still well over $1 each – $1.36 a share at the present time.

Or Core Lithium Ltd (ASX: CXO). Core Lithium is asking just under $1 a share at present, but has been as high as $1.88 in the past 12 months.

But others have far lower share prices. Take popular lithium stock Sayona Mining Ltd (ASX: SYA). Right now, Sayona is going for 22 cents a share.

Fellow lithium company Anson Resources Ltd (ASX: ASN) is trading at 19 cents per share.

And you can pick up a single share of Latin Resources Ltd (ASX: LRS) for just 13 cents.

So these last three shares are the cheap ones, right? The shares you might choose if you want the maximum upside?

Well, no.

It's a common misconception on the share market that a lower share price equates to a 'cheaper' price. Sure, you can buy more shares if a share price is lower. But that's it.

A share price is a function of two things – a company's market capitalisation, and how many shares it has on issue. The price of those shares is entirely determined by the company's market cap. So when you see shares moving up and down in price, what you are really seeing is a company's market capitalisation changing.

Low-price ASX lithium stocks aren't cheap

Let's say a company has one million shares on issue.

If the market wants to value that company at $1 million, it will give each of its shares a share price of $1. If the company does well over time, and the market decides it is now worth $2 million, then the shares will rise to $2 each.

But then say that same company decides to issue more shares, enough to double its share count. Now there are two million shares on issue. But if the market still thinks the company should be worth $1 million, then each share will be priced at 50 cents.    

So just because Latin Resources shares are 13 cents each, doesn't mean that it is cheaper than another ASX lithium stock like Pilbara Minerals at $4.40. It just means that Pilbara has a greater market capitalisation, with proportionally fewer shares, than Latin Resources.

If the market decides to double the value of either Latin or Piblara, investors will enjoy exactly the same monetary gain.

Just because an ASX lithium stock's share price is numerically lower doesn't mean it has more potential to rise over time. The only thing that matters at the end of the day is how profitable a company is, and how much value the share market places on those profits.

The post At under 30 cents each, are these ASX lithium stocks cheap? appeared first on The Motley Fool Australia.

It has achieved "another significant step forward on the path to production", according to Anson Resources executive chair and CEO Bruce Richardson, as the company unveiled a water rights agreement for its flagship lithium brine project in the US state of Utah.

The stock is soaring on the back of the news. Right now, the Anson Resources share price is 5.56% higher at 19 cents.

Let's take a closer look at the latest news from the ASX lithium share.

ASX lithium share soars on water agreement

The Anson share price is rocketing on Monday as the company gets one step closer to kicking off production at the project it describes as being on the doorstep of Tesla Inc (NASDAQ: TSLA).

It's signed a sub-lease agreement with Green River Companies, which is in turn approved by the Wayne County Water Conversancy Board.

That will see the ASX lithium company leasing more water than is expected to be needed to run its planned 13,000 tonnes per annum lithium carbonate equivalent plant.

Commenting on the news driving the ASX lithium share higher, Richardson said:

Water is an essential part of the lithium production and while the current process flow sheet allows for approximately 80% of the water used to be recycled, additional water needs to be added.

We are delighted that Anson has been able to successfully negotiate this agreement … which further demonstrates the support that the project continues to receive from the local and state governments.

The agreement is for an initial 23 years and carries the option to extend for another 20 years.

It was initially signed in October. However, conditions, including a $1 million payment from Anson Resources' subsidiary A1 Lithium Inc, have now been completed.

Today's gain sees the Anson Resources share price 5.6% higher than it was at the start of 2023. It has also gained 46.2% since this time last year.

It's joined in the green by many of the ASX's biggest lithium stocks today.

The share price of Pilbara Minerals Ltd (ASX: PLS), for instance, is currently up 6.04%. Meanwhile, that of Core Lithium Ltd (ASX: CXO) has gained 4.45%.

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Looking at their share price movements during the month, Piedmont Lithium Inc (ASX: PLL) shares fell 13.54%, Leo Lithium Ltd (ASX: LLL) shares dropped 11.29%, while Anson Resources Ltd (ASX: ASN) shares plunged 25.81%.

Let's take a look at each of these ASX lithium shares in more detail.

Piedmont Lithium

Piedmont is aiming to become a "leading American producer of lithium hydroxide" produced from spodumene concentrate. On 2 November, Piedmont released a corporate presentation to the market.

On 16 November, Piedmont advised Sayona Mining Ltd (ASX: SYA) had entered a strategic acquisition and earn-in agreement with Jourdan Resources Inc (TSXV: JOR) for 48 claims of the Vallee Lithium Project. Piedmont has a 25% stake in the project.

Commenting on this news, Piedmont Lithium CEO and president Keith Phillips said:

The claims of the Vallee Lithium Project represent the potential to extend or expand North American Lithium (NAL_ operations over time. At this time, we remain focused on near-term production of spodumene concentrate as NAL advances toward the restart target of H1 2023.

Piedmont Lithium shares may have fallen in November, but they have gained nearly 12% overall year to date. The company is also listed in the United States under the ticker (NASDAQ: PLL).

Anson Resources

Anson Resources is developing the Paradox Lithium Project in Utah, USA. The company is exploring lithium and NaBr from this project.

Anson announced a major upgrade to its mineral resource estimate for the Paradox project in November. The new upgraded resource is:

• 1,037,900t of Lithium Carbonate Equivalent (LCE) and 5.27Mt of Bromine

Commenting on the news, the company said:

The delivery of the mineral resource upgrade represents another significant achievement in the
development pathway of the Project.

Anson shares have soared 70% in the year to date and a mammoth 92% in the last year.

Leo Lithium

Leo Lithium is developing the Goulamina Lithium Project in Mali, West Africa.

On 15 November, Leo Lithium advised it has signed a port services agreement to export spodumene concentrate produced at the Goulamina Lithium Project.

On 28 November, Leo Lithium advised Ron Chamberlain has been appointed chief financial officer and joint company secretary. Commenting on this news, Leo Lithium managing director Simon Hay said:

Ron's experience in projects and operations in a global setting including Africa will be a real asset to Leo.

Despite falling in November overall, the company's shares have soared 17% since market close on 28 November.

The post What were the 3 worst-performing ASX lithium shares in November? appeared first on The Motley Fool Australia.

In fact, a recent report from the Australian Government tipped the nation's exports of the commodity to increase more than tenfold from 2020-21 to 2022-23, coming in at $13.8 billion this financial year.

That's expected to be driven by surging lithium prices. Those invested in ASX lithium shares likely jumped for joy when they learnt the government expects lithium hydroxide to trade at US$51,510 a tonne next year.

But some stocks involved with the material performed better than others last quarter. Indeed, one ASX lithium stock saw its value triple over the three months ended 30 September.

For context, the benchmark All Ordinaries Index (ASX: XAO) slumped 1% in that time.

Keep reading to find out which ASX lithium shares topped all others last quarter.

A quick note; only shares with market capitalisations of at least $100 million were considered for inclusion.

3 ASX lithium shares outperforming all others in Q1

The biggest gains of any ASX lithium share last quarter were posted by the Anson Resources Ltd (ASX: ASN) share price. It surged a whopping 210.5% to finish September at 29.5 cents.

However, that's a long way down from the all-time high of 47.5 cents it posted last month.

Like many of its gains last quarter, that surge came on the back of news of the company's flagship Paradox Lithium Project in Utah. A definitive feasibility study completed at the project in early September confirmed its "outstanding economics" and future potential.

Anson Resources was joined in the green by S&P/ASX 200 Index (ASX: XJO) lithium share Pilbara Minerals Ltd (ASX: PLS). The Pilbara Minerals share price launched 99% last quarter to close September at $4.56.

The major news from the lithium giant during that time was of its maiden profit. The company posted a $561.8 million after-tax profit for financial year 2022 in August.

And finally, the third best-performing ASX lithium share of the September quarter was Global Lithium Resources Ltd (ASX: GL1). The company's share price rocketed 90% to $2.20 over the period.

That saw the stock a whopping 1,000% higher than the company's initial public offering (IPO) asking price of 20 cents. It floated on the ASX in May 2021.

Much of the news from the company last quarter regarded its 80%-owned Manna Lithium Project in Western Australia. The project's mineral resource estimate is expected to be updated this quarter.

The Global Lithium Resources share price also gained 19% when Mineral Resources Limited (ASX: MIN) upped its stake in the company to 8% last month.

The post Charging up: Here are the 3 top performing ASX lithium shares of Q1 appeared first on The Motley Fool Australia.

In late morning trade, the lithium explorer's shares are down almost 8% to 30 cents.

Why is the Anson Resources share price sinking?

Investors have been selling down the Anson Resources share price despite there being no news out of the company today.

However, it is worth noting that the company's shares rocketed higher on Thursday. This could mean that profit taking is weighing on them today. Particularly given how the lithium industry is underperforming on Friday, with most lithium shares trading notably lower.

For example, the Lake Resources N.L. (ASX: LKE) share price is down 3.5% and the Pilbara Minerals Ltd (ASX: PLS) share price is down 2.5%.

What got investors excited yesterday?

The Anson Resources share price surged higher yesterday after the company revealed that it has discovered multiple new lithium-rich zones.

This follows recent resource definition drilling at the Cane Creek 32-1 well at the Paradox Lithium Project in Utah, USA.

Management advised that drilling at Cane Creek intersected lithium-rich brines in the additional Clastic Zones 45, 47, 49 and 51. This is on top of the recently reported lithium-rich brines in Clastic Zone.

The release notes that assay results from Clastic Zones 43, 45, 47 and 49 average 100ppm Li, which is ~17% higher than the average grade of Clastic Zones 17, 19, 29 and 33 included in the recent resource upgrade.

Another positive is that the supersaturated brines are chemically similar to those of the previously sampled Clastic Zones in other wells which already have indicated and inferred JORC Resources.

The post Why is the Anson Resources share price nosediving 8% on Friday? appeared first on The Motley Fool Australia.

While most lithium stocks are enjoying another good run today, these three are leading the pack.

So, without further ado, here's what investors are considering today.

What's piquing ASX investor interest?

The first ASX lithium share shooting higher today is Anson Resources Ltd (ASX: ASN).

The Anson Resources share price is up 12.28% in early afternoon trade.

Shares are surging after the company reported the discovery of "multiple new lithium-rich zones" at its Paradox Lithium Project in the US state of Utah. The lithium intersections were hit in its recently completed resource definition drilling at the Cane Creek 32-1 well.

The miner said that drilling is now complete at Cane Creek, with multiple assays pending that it expects will deliver a "significant further JORC Resource upgrade".

The second ASX lithium share rocketing higher today is Global Lithium Resources Ltd (ASX: GL1). The Global Lithium share price is up 6.98%.

Investors are bidding up shares after the company reported it had signed a non-binding memorandum of understanding (MOU) with Korean battery manufacturer SK On Co., Ltd (SKO) "to explore a range of future business opportunities".

Commenting on the MOU, Global Lithium's managing director Ron Mitchell said:

The scope of this partnership has the potential to strengthen and diversify the future of Global Lithium's projects in Western Australia both in the near term and in the years ahead… The lithium and EV markets have experienced significant growth over the past two years and this expansion is only set to accelerate as demand for lithium-ion batteries increases.

This brings us to the third ASX lithium share leaping higher, De Grey Mining Limited (ASX: DEG). While the miner's prime focus is gold, it also explores for lithium. The De Grey Mining share price is up 6.36% today.

With no fresh price-sensitive news out today, De Grey looks to be cashing in on the broader bullishness surrounding the lithium market.

How have these ASX lithium shares been tracking?

All three of these ASX lithium shares have beaten the 10% loss posted by the All Ordinaries Index (ASX: XAO) over the past 12 months.

The De Grey share price has gained 12%, the Anson Resources share price is up 250%, and the Global Lithium share price has surged almost 500% since this time last year.

The post 3 ASX lithium shares having a stellar run on Thursday appeared first on The Motley Fool Australia.

The S&P/ASX 200 Materials Index (ASX: XMJ) finished down 5.27% and was the second-worst performing sector on Monday, behind the S&P/ASX 200 Energy Index (ASX: XEJ).

Things weren't looking too good on a more macro level either, as the S&P/ASX 200 Index (ASX: XJO) also struggled, closing at a 1.6% loss.

Driving the nail deeper, some lithium shares ended Monday down 12% or more. Let's assess the damage.

Anson Resources Ltd (ASX: ASN)

The Anson Resources share price closed down 16.9% this afternoon. Investors could be reeling after the company's 16 September announcement that it would raise $50 million as part of a capital raise.

Anson Resources will raise funds from institutional investors, and will issue 139 million shares for 36 cents apiece.

Monies will be used to fund the development of its Paradox Lithium Project in the United States.

Argosy Minerals Limited (ASX: AGY)

The Argosy Minerals share price finished trade down 13.16%. This company has defied sell-offs over the past week and was one of the better-performing ASX lithium shares last Wednesday.

The miner is involved in producing graphite, an important material used in the construction of batteries used in electric vehicles.

The most recent update from the company came last Friday when it announced preliminary drilling results at its Rincon Lithium Project in Argentina, with a better outcome than anticipated.

Morella Corporation Ltd (ASX: 1MC)

The Morella Corporation share price closed the day down 12%.

The ASX lithium share posted its annual report for FY22 to the market on 23 September.

In it the company reported a $682,944 loss after providing for income tax and non-controlling assets for the financial year. That's significantly lower than the $73 million loss it reported in the previous corresponding period.

Meanwhile, revenues for the company ended at $788,937, while revenues for 2021 were $133,382.

The post 3 ASX lithium shares that dropped by 12% or more on Monday appeared first on The Motley Fool Australia.

The price of lithium has risen astronomically as the world continues to grow a whole new industry in electric vehicle (EV) manufacturing.

In fact, the value of lithium carbonate hit a record high this month at US$71,370.50 per tonne.

According to Trading Economics, that's an 80% increase year to date "as surging demand coincides with lower supply".

No wonder ASX lithium shares are garnering a lot of attention.

Which ASX lithium shares are performing best right now?

Let's do a snapshot of how some of the largest ASX lithium shares (by market capitalisation) are performing year to date in 2022.

• The Pilbara Minerals Ltd (ASX: PLS) share price is 40.3% higher (market cap $14.59 billion)
• The Allkem Ltd (ASX: AKE) share price is 39.9% higher ($10.17 billion)
• The Core Lithium Ltd (ASX: CXO) share price is 123% higher ($2.5 billion)
• The Sayona Mining Ltd (ASX: SYA) share price is 78.6% higher ($2.2 billion)
• The Lake Resources N.L. (ASX: LKE) share price is down 2.75% ($1.45 billion).

Here's a snapshot of how some of the junior ASX lithium shares are doing this year. Always remember, buying nano, micro and small-cap shares can be risky business, so tread carefully and do your research.

• The Global Lithium Resources Ltd (ASX: GL1) share price is 121% higher (market cap $535 million)
• The Anson Resources Ltd (ASX: ASN) share price is 160.7% higher ($396.74 million)
• The Arizona Lithium Ltd (ASX: AZL) share price is down 29.2% ($209.66 million)
• The Iris Metals Ltd (ASX: IR1) share price is 186.2% higher ($198.94 million)
• The Ragusa Minerals Ltd (ASX: RAS) share price is 300% higher ($35.34M).

Business performance vs. share price performance

As seasoned investors know, the performance of a business doesn't necessarily correspond with the performance of its share price and vice versa. Annoying, right?

This is especially the case with young, growing companies that the market is excited about. Investors can sometimes bid the share price up on expectations of future profits, not current profits.

Share price growth doesn't necessarily indicate great revenue and profit, or superior management. So when assessing ASX lithium shares for investment, you can't just look at what the share prices have done lately. You need to get under the hood and check the inner workings of each company are sound.

With reporting season just behind us, let's compare a few metrics on the two largest ASX lithium shares.

Pilbara Minerals FY22 results

• Revenue up 577% year-over-year (yoy) to $1.2 billion
• EBITDA of $814.5 million, up from $21.4 million in FY21
• Statutory net profit after tax (NPAT) of $561.8 million, up from a loss of $51.4 million loss in FY21
• Share price went up 53.4% over FY22
• Price-to-earnings (P/E) ratio of 17.86 compared to 9.51 for the sector today.

Allkem FY22 results

• Revenue up 800% yoy to US$770 million
• EBITDAIX of US$513.1 million
• Consolidated NPAT of US$337 million, up from a loss of US$89.5 million in FY21
• Share price went up 54.8% over FY22
• P/E ratio today of 17.53 compared to 9.51 for the sector today.

Why is the value of lithium rising?

The reasons behind this month's record lithium price are clear.

According to Trading Economics analysis:

Added stimulus and cash incentives by local Chinese governments spurred growth in demand of electric vehicles in the world's second largest economy, notching a 100% year-on-year increase in August.

In the US, demand for electric vehicles is set to increase as the newly passed "Inflation Reduction Act" extends tax breaks for new electric vehicle purchases.

On the supply side, the energy crisis in China brought by record-setting heat waves led multiple lithium producers in Sichuan to suspend operations, adding to the upside of soaring lithium costs in the near-term.

Scarcity led auto manufacturers with large bets on battery electric vehicles to compete for long-term supply contracts, including Ford and Stellantis. Also, electric vehicle giant Tesla mulled building its own lithium refinery in Texas.

The post Which ASX lithium shares are performing best in 2022? appeared first on The Motley Fool Australia.

During early morning trade, the lithium explorer's shares fell to an intraday low of 38.5 cents before recovering some of their losses.

Currently, the share is down 6.47%, trading at 39.8 cents apiece.

What's driving Anson Resources shares lower?

The Anson Resources share price is tanking after the company announced it had successfully completed a capital raise.

The impending share dilution that will follow may be behind today's sell-off, along with broader weakness on the ASX.

In today's release, Anson Resources advised it has received binding commitments to raise $50 million from global institutional investors.

Interest in the share placement had exceeded the company's requirements, with management deciding to upsize the offer to $50 million.

The placement will see the company issue approximately 139 million shares at a price of 36 cents per share.

This represents a 15.3% discount on the last closing price of 42.5 cents per share on 14 September, before the company entered a trading halt.

The company will use proceeds from the placement to expand its project development workstreams at the Paradox Lithium Project in Utah, USA. This includes front-end engineering design work, permitting and ordering of long lead procurement items.

The company will also work towards a final investment decision (FID) on the project.

The new shares are expected to be issued on or around 27 September.

What did management say?

Anson Resources executive chair Bruce Richardson welcomed the news, saying:

The result of the capital raise is an outstanding endorsement of the Paradox Lithium Project and for 'made in USA' battery grade lithium carbonate.

We were delighted to price the Placement at a tight discount to the prevailing VWAPs, despite immediately following a significant market downward correction.

Anson Resources share price snapshot

Despite today's losses, the Anson Resources share price is up 297% over the last 12 months.

Year-to-date the company's shares are trading 194% higher.

Anson Resources commands a market capitalisation of $409.6 million with approximately 1.03 billion shares on issue.

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The Anson Resources share price closed Wednesday's session at 43 cents.

And there it will stay until either the market hears news from the company or the ASX opens on Monday, whichever comes first.

Let's take a closer look at the latest from the lithium-focused mineral explorer and development company.

ASX lithium share Anson Resources frozen on Thursday

The Anson Resources share price is on ice today as the company prepares to inform the market of capital raising activities.

The trading halt comes just one day after the stock dodged a broader market sell-off with news of its Paradox Lithium Project.

The Anson Resources share price hit a new record high of 47.5 cents on Wednesday on the back of encouraging assay results from the project's Cane Creek 32-1 well.

Additionally, the company's latest quarterly report described its balance sheet as "strong".

It boasted around $5.72 million of cash and $14.7 million of unused finance facilities as of the end of June. That saw it with an estimated seven quarters of funding available.

The last time the company underwent a capital raise was almost exactly 12 months ago. Then, it raised around $7.35 million, issuing new shares for 9.1 cents apiece.

The Anson Resources share price has since gained 325% over the last 12 months. It has also surged 165% since this time last month.

Of course, that means a measure of its volume weighted average price (VWAP) might come up considerably lower than its current level.

The post Why is ASX lithium share Anson Resources on ice today? appeared first on The Motley Fool Australia.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 2.48% following heavy declines on Wall Street overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) tanked 3.94%, along with the tech-heavy NASDAQ-100 (NASDAQ: NDX) losing 5.54% and the S&P 500 Index (SP: .INX) shedding 4.32%.

This marked the biggest one-day loss in two years for Wall Street following the release of the consumer price index report for August.

Subsequently, around $60 billion has been wiped off the ASX as global markets reel from the disappointing inflation data.

The US Federal Reserve could lift interest rates by 100 basis points as opposed to the previously forecasted 75 basis points.

It appears the market is bracing for such a move by the US central bank.

While there's mostly a sea of red on the ASX, some lithium shares are defying the sell-off.

How are these ASX lithium shares faring today?

The Anson Resources Ltd (ASX: ASN) share price touched an all-time high on the back of the company's assay results from its Paradox Lithium Project.

While its shares have retraced since, they are currently up 7.14% to 45.5 cents apiece.

In addition, the Leo Lithium Ltd (ASX: LLL) share price is cracking 7.41% higher to 72.5 cents following late night's release of its half-year accounts.

The lithium producer has had a busy 6 months with the completion of the Goulamina Joint Venture.

Leo Lithium is aiming to develop and operate the world-class Goulamina Lithium Project in Mali.

Lastly, the Latin Resources Ltd (ASX: LRS) share price is also pushing upwards despite no company announcements.

The lithium explorer's shares are up 4.35% to 12 cents.

On the other hand, the Lake Resources N.L. (ASX: LKE) share price is tumbling 14.57% to $1.085 due to a project dispute.

Conversely, shares in Vulcan Energy Resources Ltd (ASX: VUL) are down 6.52% to $8.17, reversing a majority of its 9.94% gain yesterday.

According to Trading Economics, the price of lithium carbonate is steady at US$71,200 per tonne, up 0.4% in a week.

When looking at year-on-year, lithium prices are up 245%, which isn't far off from its record high of US$71,800 per tonne.

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The results from a now-completed drilling program have confirmed the potential to expand the project's mineral resources.

The Anson Resources share price is lifting 8.33% right now to trade at 45.5 cents.

Though, that's down from its earlier high of 46.5 cents – marking a new all-time high.

That's despite the broader market plummeting. The All Ordinaries Index (ASX: XAO) is down 2.78% at the time of writing following Wall Street's disastrous overnight trade.

Let's take a closer look at why the ASX mineral explorer is floating above a sea of red on Wednesday.

Anson Resources stock hits all-time ASX high on lithium find

The Anson Resources share price is rocketing higher on Wednesday on news of its Paradox Project's Cane Creek 32-1 well.

Initial assays from now-completed drilling at the well found one of its clastic zones contains 108 parts per million of lithium. That's 40% more than the average grade of four zones included in the project's recently upgraded JORC resource.

Exploration drilling at the well's additional clastic zones has found that they contain a supersaturated brine.

Results from further clastic zones and Mississippian units are still pending.

However, the company noted that a number of the additional clastic zones are much thicker than those previously sampled. Therefore, they may provide a large increase in a further planned mineral resource upgrade.

The Anson Resources share price rocketed nearly 43% late last month when it announced the project's mineral resource had been more than quadrupled.

It's currently trading a whopping 184% higher than it was this time last month.

Anson Resources share price snapshot

Looking further back, the Anson Resources share price has gained 225% since the start of 2022.

It's also currently 355% higher than it was this time last year.

For comparison, the All Ordinaries Index has slipped 11% year to date and 7% over the last 12 months.

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In comparison, Core Lithium Ltd (ASX: CXO) is up a massive 155.56% over the same period. Other lithium shares are up even more, including Latin Resources Ltd (ASX: LRS), up 300%, and Anson Resources Ltd (ASX: ASN), up 178% in 2022.

On a broader level, the S&P/ASX 200 Materials Index (ASX: XMJ) is down 7.20% year to date.

So why is Vulcan Energy struggling while others are surging upwards? Let's investigate.

Why is Vulcan Energy struggling?

One explanation for why Vulcan Energy is being left behind could be down to a lack of positive news and developments from the company. This is despite its zero-carbon lithium potentially trading at a 'green premium' in the future.

Other ASX lithium shares reported high-grade findings of lithium at their extraction sites, which led their share prices to soar.

For example, on Wednesday, Latin Resources announced it had discovered lithium at its Colina prospect in Brazil. Previous drilling attempts also found a lithium corridor of a total distance of 4km.

And as for Anson Resources, the company reported "outstanding economics" from its Paradox Lithium project on Thursday. When the Fool reported the news, shares were up 35%.

But although Vulcan Energy's share price has been less buoyant than others from a lack of announcements from the company, this doesn't mean its prospects are bleak.

In fact, Alster Research gave Vulcan shares a price target of $20 apiece in early August, thus giving it a 131.74% potential upside at the time of writing.

The leading broker in Europe expects Vulcan Energy to reach this target within the next 12 months, so it may catch up to its peers sooner than we expect.

Vulcan Energy share price snapshot

The Vulcan Energy share price was up 3.97%, trading at $8.65 at the market close on Friday.

The company's market capitalisation is $1.24 billion based on this figure.

The post Vulcan Energy share price is one of the worst ASX lithium performers so far this year. Why? appeared first on The Motley Fool Australia.

And for good reason.

Lithium is a core ingredient in the lithium-ion batteries that power the world's ever-growing fleet of EVs. Most grid storage batteries also require large amounts of lithium.

With the world transitioning away from fossil fuels, lithium prices have gone ballistic since July 2021, hitting all-time highs in March this year. Prices dipped briefly in July but the lightweight, highly conductive metal is back to within 0.5% of its record price at the time of writing.

As you'd expect, rocketing prices for the metal have been a boon to ASX lithium shares.

These four ASX lithium shares are up more than 100% in 2022

It has been a tough year for many ASX stocks.

Since the opening bell on 4 January, the All Ordinaries Index (ASX: XAO) is down 10.1%.

Yet here's how these top ASX lithium shares have performed:

• Sayona Mining Ltd (ASX: SYA) shares are up 128.6%
• Anson Resources Ltd (ASX: ASN) shares are up 182.1%
• Core Lithium Ltd (ASX: CXO) shares are up 150%
• Latin Resources Ltd (ASX: LRS) shares are up 300%

What's piquing ASX investor interest?

Investors have clearly been drawn to the rising lithium price alongside the regular media coverage ASX lithium shares have enjoyed this year.

In Core Lithium's most recent quarterly update, the miner reported that its Finniss Lithium Project in the Northern Territory is on track to export its first lithium by the end of 2022.

The stock also likely received a boost from its admission into the S&P/ASX 200 Index (ASX: XJO). That will enable more fund managers, restricted to trading the biggest stocks, to add Core Lithium shares to their portfolios.

There's been a steady stream of good news coming from Anson Resources as well.

In its latest release yesterday, the ASX lithium share updated the market on its Paradox Lithium project, located in the US state of Utah. Anson's definitive feasibility study showed "outstanding economics" for the project. The company hopes to become a major supplier for the US EV market.

Anson shares closed up 42.4% yesterday on the news.

Sayona Mining also notched up its fair share of successes recently.

In August, the ASX lithium share reported it had restarted its North American Lithium (NAL) operations, located in the Canadian province of Quebec. Sayona is forecasting its first spodumene production from NAL in the first quarter of 2023.

Then there's Latin Resources, the biggest year-to-date gainer among the ASX lithium shares.

In its most recent update on Wednesday, the miner reported that drilling had intersected more high-grade lithium at its Colina prospect, located in Brazil. Latin Resources stated it's on schedule to deliver its maiden JORC resource in December.

The post 4 ASX lithium shares that have rocketed more than 100% in 2022 appeared first on The Motley Fool Australia.

They have surged as much as 45% today to hit new record highs.

So, without further ado, let's take a look at the lithium shares outperforming on Thursday.

4 ASX lithium shares hitting record highs today

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price surged to peak at $4.22 today – marking a 6.8% gain and a new record high.

Interestingly, there's been no news from the S&P/ASX 200 Index (ASX: XJO) share today. Though, earlier this week top broker JP Morgan reportedly upped its price target for the stock to $4.10.

It's also only a few weeks since the company posted its maiden profit. It raked in $561.8 million in financial year 2022.

Allkem Ltd (ASX: AKE)

Another ASX 200 lithium share surging to new heights on Thursday is Allkem. The stock lifted 6.7% at its intraday high to hit $15.02.

The company – previously known as Orocobre – was renamed shortly after its merger with Galaxy Resources.

It posted record production and US$770 million of revenue for financial year 2022 late last month.

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price also roared to its highest point since hitting the ASX earlier today. The stock peaked at 62.5 cents on Thursday – marking a 6.8% gain.

However, investors who jumped on board the company during its initial public offering (IPO) might be holding out for more.

The company floated on the ASX in June following its spinout from Firefinch Ltd (ASX: FFX).

As part of its IPO, it raised $100 million by selling stock for 70 cents apiece. It also handed out one new share in Leo Lithium to every investor holding 1.4 shares in its parent company.

Anson Resources Ltd (ASX: ASN)

The final ASX lithium share to hit an all-time high on Thursday is Anson Resources. Its share price launched a whopping 46% higher to peak at 43 cents mid-afternoon.

Its gain follows news of the company's Paradox Lithium Project.

The project's definitive feasibility study has confirmed its "outstanding economics" and potential to be a major source of lithium for US markets.  

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