Every now and then, though, it's worth casting your eye over stocks which could outperform the market by a significant amount, and deliver outsized returns.

I've had a look at the recent analyst reports and selected three companies that, at least if the analysts are to be believed, are significantly undervalued at current levels.

Catapult Sports Ltd (ASX: CAT)

Catapult is a global leader in providing technology for professional sports teams to monitor, track, and evaluate their players.

The company held an investor day recently and also put out a trading update in March, which indicated that the company expected management EBITDA to grow by about 50% year on year, "as the company's profitability continues to outpace its strong top-line growth''.

The analysts at Canaccord Genuity attended the investor day and said the company was targeting growth to 5,000 teams in the next two to three years, then 7,000 to 10,000 teams in five to six years.

They added:

Management has identified several greenfield opportunities across global Soccer (lower division levels not using any tech) and Basketball (currently about 100-150 teams weighted to US-based collegiate level), with potential expansion into other US college sports (e.g. Athletics, Ice hockey).

Canaccord has a price target of $8 on Catapult shares, compared with $3.22 now.

Clarity Pharmaceuticals Ltd (ASX: CU6)

Clarity has two Phase III clinical trials in the prostate cancer space that will report this year, which could trigger a major rerating of the company's shares, the analysts at Canaccord Genuity say.

The addressable market for the company's drugs would be about $US2.9 billion annually in the US, Canaccord said, providing the potential for major revenue for the company.

They added:

Should 64Cu-SAR-bisPSMA be approved, and subsequently launch in 2H28, by FY35 we see Clarity generating US$860m in sales, representing 29% share. 

Canaccord has a price target of $8.41 on Clarity shares compared with $3.15 currently.

Global Lithium Resources Ltd (ASX: GL1)

Shaw and Partners has just initiated coverage on this company with a buy recommendation and a very bullish share price target.

Global Lithium is developing the Manna Lithium Project in Western Australia, and released a definitive feasibility study on it in December, envisaging a 14.3-year mine life with a payback period of 3.5 years.

Shaw's report on the company said the Manna project was of "world class scale and quality".

They added:

The project is designed for high efficiency, utilising ore sorting to optimize mill feed and reduce waste. This results in an extremely competitive all in sustaining cost of $1,101/t on our numbers, positioning Manna in the lowest quartile of the global lithium cost curve. This low-cost profile ensures the project remains resilient and commercially viable even during periods of lithium price volatility.

Shaw has a price target of $1.50 on Global Lithium shares compared with the current price of 51.5 cents.

The post 3 ASX shares tipped to grow 100% or more in the next 12 months appeared first on The Motley Fool Australia.

Shaw has initiated coverage on the company with a buy recommendation and a very bullish price target, which we'll get to shortly.

World-class asset

Firstly, let's have a look at the project which Global Lithium Resources is proving up.

The company in December released a definitive feasibility study (DFS) on the Manna project, which is 110km east of Kalgoorlie in Western Australia.

The company said the DFS "confirms Manna as a long-life and economically robust lithium asset''.

The DFS said it would cost $439.1 million to build the project, which would have a payback period of 3.5 years and a mine life of 14.3 years.

The life of mine cash flow was estimated at $1.15 billion, while the mineral resource estimate came in at 51.6 million tonnes at a grade of 1% lithium oxide.

Global Lithium Managing Director Dr Dianmin Chen said at the time that the study indicated a robust project.

He added:

This DFS underscores the potential for Manna to both create shareholder value and contribute to the world's lithium supply chain through its robust economics, significant long-life potential and Company's commitment to invest in and develop projects in Western Australia. The DFS confirms Manna's place as the third largest lithium deposit in the Eastern Goldfields, poised to be a significant contributor of lithium to support countries around the world as they continue to pursue energy transition and decarbonisation goals. Our disciplined approach to de-risking the future development of Manna, evidenced by the grant of a Mining Lease and signing of a Native Title Mining Agreement, along with the project's compelling financial and technical metrics, sets a strong foundation for future funding and development options.

Dr Chen said the company was targeting a final investment decision in 2026, with discussions continuing in areas such as signing up offtake partners.

Lithium shares looking cheap

Shaw's report on the company said the Manna project was of "world class scale and quality''.

They added:

The project is designed for high efficiency, utilising ore sorting to optimize mill feed and reduce waste. This results in an extremely competitive all in sustaining cost of $1,101/t on our numbers, positioning Manna in the lowest quartile of the global lithium cost curve. This low-cost profile ensures the project remains resilient and commercially viable even during periods of lithium price volatility.

Shaw said the project was rapidly approaching "shovel ready status".

Shaw has a price target of $1.50 on Global Lithium shares, compared with the current price of 50 cents.

Global Lithium was valued at $124.9 million at the close of trade on Tuesday.

The post These lithium shares could triple in value: Broker appeared first on The Motley Fool Australia.

For instance, take leading ASX 200 lithium miner Pilbara Minerals Ltd (ASX: PLS).

Shares in the company have jumped by 181% since early June, climbing to $3.80 per share at Friday's close.

And during the same period, fellow ASX 200 mining heavyweight Mineral Resources Ltd (ASX: MIN) has seen its share price more-than-double.

But a lesser-known lithium player has outperformed both mining behemoths.

That company is Global Lithium Resources Ltd (ASX: GL1), an exploration business aiming to bring its wholly owned Manna lithium project to production.

Global Lithium shares have surged by 300% over the past six months, reaching $0.60 apiece at the close of business on Friday.

And this week, the group took a major step to realising its goals of becoming Australia's newest lithium miner.

Significant lithium project

Manna lies about 100 kilometres east of Kalgoorlie in the globally renowned and infrastructure-rich Goldfields region of Western Australia.

It boasts a mineral resource consisting of 51.6 million tonnes grading 1.0% lithium.

And management believes Manna to be the third largest lithium resource in the Kalgoorlie lithium province.

Earlier this year, Global Lithium notched up two key milestones in its efforts to move the project to production.

In August, it sealed a Native Title Mining Agreement whilst also securing a mining lease from the Western Australian government.

And just this week, the ASX lithium stock took another major step on its path to production.

What happened?

Over the past nine months, Global Lithium has been running a Definitive Feasibility Study (DFS) to gauge the merits of building a mine at Manna.

And on Thursday, it unveiled the results.

According to the company, the study confirmed Manna as a long-life and economically robust lithium asset.

It forecast an initial mining operation spanning 14.3 years, with a payback period of 3.5 years.

The study also envisaged a post-tax free cashflow of about $1.15 billion for the duration of the mine.

Global Lithium managing director, Dr Dianmin Chen, commented:

This DFS underscores the potential for Manna to both create shareholder value and contribute to the world's lithium supply chain through its robust economics, significant long-life potential and Company's commitment to invest in and develop projects in Western Australia.

What next for this ASX lithium stock?

Global Lithium will now focus on securing the funding required to build a mine.

Here, the DFS projected capital costs to total nearly $440 million.

It will also look to nail down remaining regulatory approvals ahead of a final investment decision planned for next year.

The post Up 300% in 6 months! This soaring ASX lithium stock just took a major step to production appeared first on The Motley Fool Australia.

Shares in the lithium miner closed yesterday trading for 19 cents. In late morning trade on Tuesday, shares are swapping hands for 17 cents apiece, down 10.5%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.7% at this same time.

This underperformance comes following an update from the ASX lithium share outlining significant corporate and operational changes.

Here's what's going on.

All Ords ASX lithium share curtails operations

All Ords investors are bidding down the ASX lithium share after management announced operational and corporate pullbacks, citing "the current and likely protracted downturn in the global lithium market".

Indeed, lithium prices have crashed more than 80% since hitting all-time highs in November 2022. And with the global supply growth of the battery critical metal still outpacing slowing demand growth, few analysts expect a rebound anytime soon.

With this medium-term outlook in mind, Global Lithium aims to cut costs on numerous fronts.

The ASX lithium share said it will pause work on several components relating to the Definitive Feasibility Study (DFS) of its 100% owned Manna Lithium Project, located in Western Australia.

The miner also announced a material reduction in monthly expenditure on all corporate overheads and operational spending.

And Global Lithium's board will be cut from four to three at the AGM in November. The board reduction will remain until the lithium market downturn reverses and there is more certainty to price forecasts.

The company said it is taking these cost-cutting measures to ensure it remains in a strong financial position to advance its Manna project when "more favourable market conditions prevail". The miner intends to continue with targeted exploration activities.

Commenting on the changes pressuring the All Ords ASX lithium share today, Global Lithium chairman Ron Mitchell said: "The changes we are implementing at both corporate and operational levels are appropriate, given the macro circumstances facing the company and the lithium industry more broadly."

Mitchell added:

Our focus must remain on protecting and enhancing value for our shareholders, which is why these tough decisions are now unavoidable. Nevertheless, the company is in a robust financial position and is well placed to weather the current market conditions.

The proposed Board changes have been put in place to facilitate the orderly transition at the upcoming AGM and to ensure the company can properly implement required cost reductions in the coming months.

Global Lithium joins a number of other ASX lithium shares that are either curtailing or suspending production as they await a rebound in the price of the battery-critical mineral.

Core Lithium Ltd (ASX: CXO), for example, suspended lithium mining at its Finniss project in the Northern Territory in January this year.

How has the miner been tracking?

It's been a tough year for Global Lithium shareholders, with the ASX lithium share now down 85% in 12 months.

The post Which All Ords ASX lithium share is slowing up and downsizing today? appeared first on The Motley Fool Australia.

While this is disappointing, it could have created a buying opportunity according to some analysts.

For example, listed below are four ASX lithium shares that have recently been rated as buys with material upside potential:

Delta Lithium Ltd (ASX: DLI)

The team at Bell Potter believe that investors should be buying this small-cap ASX lithium share. Its analysts have just retained their speculative buy rating on its shares with a reduced price target of 85 cents. This suggests that its shares could rise approximately 85% over the next 12 months. It notes that Delta has "attracted strategic investment from several notable strategic investors."

Global Lithium Resources Ltd (ASX: GL1)

Analysts at Shaw and Partners continue to see significant value on offer with this ASX lithium share. A note from last week reveals that its analysts have retained their speculative buy rating and $3.20 price target on its shares. This offers over 150% upside from current levels. Global Lithium is the owner of the Manna Lithium Project.

Liontown Resources Ltd (ASX: LTR)

Bell Potter also believes that lithium developer Liontown Resources could be an ASX lithium share to buy. Its analysts recently reaffirmed their speculative buy rating and $2.75 price target on its shares. It highlights that Liontown "is now fully funded to complete the development of Kathleen Valley and is on track to ramp-up spodumene concentrate production from mid-2024." Bell Potter's price target offers a 71% upside.

Pilbara Minerals Ltd (ASX: PLS)

Macquarie may have finally admitted defeat with its bullish lithium price forecasts, but it still sees value in this lithium giant. Last week, the broker retained its outperform rating on its shares with a $4.40 price target. This represents a potential upside of 12% for investors.

The post 4 buy-rated ASX lithium shares for 2024 appeared first on The Motley Fool Australia.

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:

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.

The post '6 to 9 months': 2 ASX lithium shares just waiting to break out appeared first on The Motley Fool Australia.

Last week, they were all given the thumbs-up by brokers. Let's see what sort of returns could be on offer over the next 12 months:

Allkem Ltd (ASX: AKE)

Goldman Sachs thinks that this lithium giant could be a top option. Last week, it retained its buy rating on the ASX lithium share with a trimmed price target of $14.40. This implies a potential upside of approximately 42% for investors.

Global Lithium Resources Ltd (ASX: GL1)

Analysts at Shaw and Partners appear to believe that this ASX lithium share is extremely undervalued. A note from last week reveals that its analysts were impressed with its drilling results at the Manna Lithium Project. So much so, that they have retained their buy rating and lofty $3.20 price target. This suggests that its shares could rise over 150% from current levels.

Liontown Resources Ltd (ASX: LTR)

Also getting the thumbs up last week was lithium developer Liontown Resources. Bell Potter appears to believe that recent weakness has created a buying opportunity for investors with a high-risk tolerance. It has upgraded the company's shares to a speculative buy rating with a new price target of $2.75. This implies a potential upside of almost 63% over the next 12 months.

Mineral Resources Ltd (ASX: MIN)

The team at Macquarie has responded to Mineral Resources' quarterly update by retaining their outperform rating with a slightly trimmed price target of $83. This implies a potential upside of almost 38% for investors.

Pilbara Minerals Ltd (ASX: PLS)

Morgans remains positive on this ASX lithium share despite its disappointing quarterly update. In response to the release, the broker retained its add rating with a reduced price target of $5. This indicates a potential return of approximately 27% for investors from current levels.

The post Brokers just named 5 ASX lithium shares to buy appeared first on The Motley Fool Australia.

So while the business prospects may not have changed, ASX stocks that may not have interested you in the past could become much more compelling because of a significant price drop.

And that's the situation with the following three cheap shares, all of which Shaw and Partners portfolio manager James Gerrish would now buy "into weakness":

2023 is 'a likely trough' for these cheap shares

It's been a wild ride for Sonic Healthcare Ltd (ASX: SHL) investors this year.

While the stock price is almost flat year to date, it has nosedived 16.9% since 17 July.

Gerrish, in a Market Matters Q&A, said that the whole healthcare sector has been suffering a decline the past few months, plus costs were a concern in Sonic's annual results.

"They delivered a 6% profit miss at FY23 earnings, driven by rising labour costs."

Despite those challenges, his team believes "the shares are currently trading at reasonable value". 

"Moving forward a better revenue collection system in the US reduces claims denials and will be launched in 2H24, extra revenue from this drops directly to the bottom line."

The worst could now be behind the healthcare provider.

"With further COVID cost-out this reshapes the earnings trajectory suggesting that FY23 is a likely trough, and we see high single digit growth from here," said Gerrish.

"Hence we like Sonic Healthcare into weakness."

No more downside for perennial underachiever?

PEXA Group Ltd (ASX: PXA) has been disappointing for investors since it listed on the ASX in mid-2021, dropping 36.5% since the first day's closing price.

It's been the same old story in recent weeks for the digital real estate settlements platform.

"The company's FY23 result… was mixed, but ultimately a FY loss of $21.8 million, which is not good but largely expected as they invest for future growth.

"However, the stock fell away after their guidance for FY24 implied more of the same."

However, similar to Sonic, Gerrish's team thinks there's upside for Pexa from this point on.

"We're of the view that conditions should be improving," he said.

"This particular investment thesis may take longer to play out. However, their UK business will be a very good one and their platform in Australia is excellent."

Gerrish's analysts like Pexa's current share price and they actually own it in their emerging companies portfolio. 

'Most potential upside' for 'world class assets'

Global Lithium Resources Ltd (ASX: GL1) shareholders are suffering more than most, with the stock plunging 40.6% since January.

But with all the corporate activity in the lithium sector, according to Gerrish, Global Lithium has plenty of potential.

"This $360 million junior lithium has world class assets, which could see plenty of interest at some point down the track from larger players."

Global lithium prices have floundered the past couple of months due to the spluttering Chinese economy.

"Most lithium stocks have followed suit. The smaller operators not yet in production like Global Lithium have struggled most," said Gerrish.

"However, they also have [the] most potential upside for those happy to take on some risk ahead of first production likely in 2025."

Gerrish's team also holds Global Lithium in its emerging companies portfolio.

The post Down 40% this year: 3 bargain ASX shares to buy now (one is a lithium stock) appeared first on The Motley Fool Australia.

That's according to top broker Macquarie, which has slapped an outperform rating on 16 stocks.

Let's review.

Why buy ASX lithium shares today?

Lithium stocks have fallen over the past year alongside declining lithium prices.

In The Australian this week, Macquarie said today's weaker prices for lithium stocks have created a buying opportunity and now is the time to snap them up for long-term investment.

The broker said:

We believe this is a buying opportunity for investors, especially the ones who look past short-term volatilities, to increase their exposure to a critical mineral at an attractive price level.

Despite a softer market sentiment, we see value in lithium developers underpinned by resource quality and/or favourable jurisdictions.

The short-term market trough creates an opportunity for strategic investors which could unlock value through business consolidation or offtake agreements.

The 16 stocks to buy

Macquarie says its favourite lithium stock today is Pilbara Minerals Ltd (ASX: PLS).

The Pilbara Minerals share price closed on Friday at $4.30, down 5.7% over the past 12 months.

The other 15 lithium stocks earning an outperform rating from Macquarie are as follows:

• Argosy Minerals Limited (ASX: AGY) shares (down 62% in 12 months)
• Core Lithium Ltd (ASX: CXO) shares (down 62% in 12 months)
• Sayona Mining Ltd (ASX: SYA) shares (down 61% in 12 months)
• Galan Lithium Ltd (ASX: GLN) shares (down 45% in 12 months)
• Global Lithium Resources Ltd (ASX: GL1) shares (down 38% in 12 months)
• Piedmont Lithium Inc (ASX: PLL) shares (down 26% in 12 months)
• Atlantic Lithium Ltd (ASX: A11) shares (down 26% in 12 months)
• Allkem Ltd (ASX: AKE) shares (down 15% in 12 months)
• Iluka Resources Limited (ASX: ILU) shares (down 15% in 12 months)
• Leo Lithium Ltd (ASX: LLL) shares (down 10% in 12 months)
• Lynas Rare Earths Ltd (ASX: LYC) shares (down 10% in 12 months)
• IGO Ltd (ASX: IGO) shares (down 8% in 12 months)
• Patriot Battery Metals Inc. CDI (ASX: PMT) shares (down 2% in 12 months)
• Mineral Resources Ltd (ASX: MIN) shares (up 3% in 12 months)
• Meteoric Resources NL (ASX: MEI) shares (up 2,150% in 12 months)

What did the broker say about these ASX shares?

Macquarie says Piedmont Lithium shares have a potential upside of more than 200% from today's price level.

Macquarie says Pilbara Minerals, Allkem, and Mineral Resources offer 100% to 160% upside.

It notes that Allkem offers "unique exposure to both lithium brine in South America and spodumene production in Australia".

Several other brokers also say Allkem shares are a buy right now. The Allkem share price closed on Friday at $11.76, up 2.1% for the day.

Macquarie said Patriot Battery Metals presents "the greatest upside on exploration over the near term", and that Global Lithium Resources "also offers great near-term exploration upside …".

The post Macquarie says these 16 beaten-up ASX lithium shares represent a buying opportunity appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Bravura Solutions Ltd (ASX: BVS)

The Bravura share price is up 2% to 50.5 cents. This morning, this financial software company announced the appointment of its new CEO. The company has appointed Andrew Russell with immediate effect. Russell has been leading Bravura on an interim basis since last month while the board undertook a global external executive search.

Global Lithium Resources Ltd (ASX: GL1)

The Global Lithium share price is up 4% to $1.84. This follows the release of the lithium explorer's quarterly update. Global Lithium's managing director, Ron Mitchell, commented: "The June quarter has been an important period for GL1 as we accelerated our CY2023 exploration programs at the Manna and Marble Bar Lithium Projects in Western Australia. The ongoing work on these projects will support the delivery of our Definitive Feasibility Study at Manna in late CY2023."

Insignia Financial Ltd (ASX: IFL)

The Insignia share price is up a further 2% to $2.99. Investors have been buying this financial services company's shares this week following the release of a business update. That update revealed that Insignia had a strong finish to FY 2023. In addition, the company has announced the sale of its IOOF business to Australian Unity for up to $40 million.

Siteminder Ltd (ASX: SDR)

The Siteminder share price is up 22% to $4.30. This has been driven by the release of the hotel software company's trading update. Siteminder revealed that it expects to report a 30.5% increase in revenue to $151.4 million for FY 2023. In addition, its annualised recurring revenue (ARR) increased 33.5% year on year to $173.1 million.

The post Why Bravura, Global Lithium, Insignia, and Siteminder shares are charging higher appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are jumping:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up 6% to $1.62. This morning, this energy producer released its fourth quarter update and revealed a 12% quarter on quarter increase in production to 5MMboe. This took its production to 19.5 MMboe in FY 2023, which underpinned full-year revenue of $1,617 million.

Catapult Group International Ltd (ASX: CAT)

The Catapult share price is up 7% to $1.12. Investors have been buying the performance technology company's shares after it released a first-quarter update. That update reveals that Catapult's annualised contract value (ACV) growth exceeded 20% year on year on a constant currency basis. Management also reaffirmed that it expects to be free cash flow positive in FY 2024.

Global Lithium Resources Ltd (ASX: GL1)

The Global Lithium share price is up 7% to $1.72. This has been driven by news that the lithium explorer has materially increased the resource of the Manna Lithium Project. The release reveals a 24.1% increase in total contained Li2O from 327,000 tonnes to 406,000 tonnes. There has also been a 13% increase in the mineral resource grade to 1.13% Li2O.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up 6% to $6.17. Investors have been buying this e-commerce company's shares following the release of its second-half update. Although Kogan reported a sharp decline in active customers and sales, its falling inventory levels and improving margins appear to have given investor sentiment a boost.

The post Why Beach, Catapult, Global Lithium, and Kogan shares are jumping appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are rising:

Azure Minerals Ltd (ASX: AZS)

The Azure Minerals share price is up over 3% to $1.67. Investors have been buying this lithium explorer's shares after it announced further promising assay results from the Andover Project. According to the release, the assays have confirmed two more "very broad intersections" of lithium mineralisation.

Global Lithium Resources Ltd (ASX: GL1)

The Global Lithium share price is up 5.5% to $1.74. This morning, analysts at Macquarie responded positively to news of a rare earths discovery at the Manna lithium project. This has seen the broker retain its outperform rating and $2.50 price target on the company's shares.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is up 8% to $1.39. Investors have been buying this biotech company's shares recently amid optimism that a major regulatory approval is coming in the next couple of weeks. Bell Potter appears to believe good news could be on the way. As a result, earlier this week it retained its speculative buy rating with a $2 price target.

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price is up 17% to $13.59. This has been driven by news that the company has expanded its partnership with Acadia Pharmaceuticals. The latter will now have an exclusive licence for trofinetide worldwide instead of just North America. Neuren will receive US$100 million up-front, plus additional potential milestone payments of up to US$427 million and royalties on net sales of trofinetide outside North America. Trofinetide is a treatment for Rett syndrome.

The post Why Azure Minerals, Global Lithium, Mesoblast, and Neuren shares are racing higher appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Everest Metals Corporation Ltd (ASX: EMC)

The Everest Metals share price is down a massive 32% to 23 cents. Investors have been hitting the sell button amid disappointing results in the company's search for lithium. While Everest Metals uncovered high-grade rubidium, this isn't what the market was betting on.

Global Lithium Resources Ltd (ASX: GL1)

The Global Lithium share price is down 5% to $1.65. This morning, Global Lithium revealed that it has found a bedrock (hard rock) rare earth elements (REE) hosting mineralised system adjacent to the Manna Lithium Project. It will be named the Cardunia Rocks REE Project. Investors appear concerned that this could be a distraction.

GreenX Metals Ltd (ASX: GRX)

The GreenX share price is down 15% to 84.5 cents. This follows news that the Greenland-based copper and gold exploration company has raised $4.2 million at a discount of 80 cents per share. The proceeds will be used to ensure that GreenX retains a strong balance sheet position.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price is down 2.5% to $15.05. This is despite there being no news out of the insurance giant on Thursday. The decline could be due to US inflation coming in softer than expected, which has sparked hopes that interest rates won't have to rise as much as feared. This could be seen as a negative for QBE, which benefits when bond yields rise.

The post Why Everest Metals, Global Lithium, GreenX, and QBE shares are falling today appeared first on The Motley Fool Australia.

Four ASX shares that have managed to avoid the selloff and push higher are listed below. Here's why they are rising:

Global Lithium Resources Ltd (ASX: GL1)

The Global Lithium share price is up 2% to $1.67. This is despite there being no news out of the lithium developer. However, it is worth noting that Shaw & Partners put out a bullish broker note in relation to the company last week. Its analysts have a buy rating and a $3.50 price target on its shares. This is double its current share price.

Latin Resources Ltd (ASX: LRS)

The Latin Resources share price is up 3% to 32.5 cents. Once again, this is despite there being no news out of the lithium developer. Though, late last month, the team at Bell Potter reiterated its speculative buy rating on the company's shares with an improved price target of 37 cents.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is up 2% to $1.95. This morning, this gold miner reported record annual production for FY 2023. Gold production came in at 458,354 ounces, which was within its original FY 2023 production guidance range of 450,000 ounces to 500,000 ounces. Regis Resources ended the period with cash and bullion of $243 million.

Renascor Resources Ltd (ASX: RNU)

The Renascor Resources share price is up 2.5% to 19.5 cents. This follows an update on drilling activities at the Siviour Graphite Deposit. Renascor advised that its latest drilling confirms a major extension to the deposit. Assays are demonstrating the continuity of widespread, high-grade graphite over an area extending over 3 kilometres immediately north of the current mineral resource.

The post Why Global Lithium, Latin Resources, Regis Resources, and Renascor shares are rising appeared first on The Motley Fool Australia.

However, a 75% drop in the global price for the commodity from late last year into late April had ASX share portfolios sweating profusely.

Was it a bubble that had now burst?

Many experts believe the long-term demand for batteries, especially for electric vehicles, will mean lithium stocks are in safe territory in the years to come.

"In 2021, global lithium carbonate equivalent (LCE) production sat at 540,000 tonnes," said Visual Capitalist reporter Bruno Venditti.

"By 2025, demand is expected to reach 1.5 million tonnes of LCE. By 2030, this number is estimated to exceed 3 million tonnes."

But if you need extra assurance for ASX lithium shares specifically, a recent graphic was a startling reminder that Australia is an especially wise place to park one's money.

Australia is the only place that extracts lithium this way

According to Visual Capitalist, Australia is the largest producer of lithium in the world, producing 61,000 tonnes last year.

In fact, the two biggest producers, Australia and Chile, extracted 76.9% of all lithium dug up for consumption in 2022.

And there's plenty more where that came from, with Australia possessing the fifth largest lithium reserves on the planet.

The mines Down Under also possess an attribute that sets it apart from other nations.

"Australia, the world's leading producer, extracts lithium directly from hard rock mines, specifically the mineral spodumene," said Venditti.

"Chile, along with Argentina, China, and other top producers, extracts lithium from brine."

He added hard rock allows "greater flexibility" because lithium extracted from it can be turned into both lithium hydroxide or lithium carbonate. 

"It also offers faster processing and higher quality as spodumene typically contains higher lithium content."

Examples of ASX lithium shares include established producers like Pilbara Minerals Ltd (ASX: PLS), explorers such as Global Lithium Resources Ltd (ASX: GL1), and all those in between like Core Lithium (ASX: CXO).

Australia wasn't always king though

Remarkably, the United States isn't even among the eight top producers now after dominating one-third of global production back in the 1990s.

"Chile eventually overtook the US, experiencing a production boom in the Salar de Atacama, one of the world's richest lithium brine deposits," said Venditti.

"Since then, Australia's lithium production has also skyrocketed, now accounting for 47% of the world's lithium production."

The post Which 2 countries produce 77% of the world's lithium? appeared first on The Motley Fool Australia.

Four ASX shares are not letting that hold them back today are listed below. Here's why they are rising:

Challenger Ltd (ASX: CGF)

The Challenger share price is up over 2% to $6.27. This follows the release of the annuities company's investor day update this morning. At the event, the company revealed that it expects its normalised profit to be above the midpoint of its guidance range of $485 million to $535 million in FY 2023.

Global Lithium Resources Ltd (ASX: GL1)

The Global Lithium share price is up 2% to $1.43. Investors have been buying this ASX lithium developer's shares after it released an update on lithium grades at the Manna project. According to the release, ore sorting trials have resulted in a 90% increase in the lithium grade (Li2O) that was reported in the preliminary test work. In addition, there was an impressive 93% reduction in iron (Fe2O3) from the mixed waste and pegmatite sample.

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price is up a further 9% to 92.5 cents. This lithium developer's shares have been on fire this week after it announced a strategic placement and cooperation agreement with Ganfeng Lithium. This will see Ganfeng pay $106.1 million for 131 million new Leo Lithium shares. This was a 12% premium to the prevailing Leo Lithium share price.

Qantas Airways Limited (ASX: QAN)

The Qantas share price is up 2% to $6.55. This morning, this airline operator held its first investor day since the pandemic. At the event, the company spoke positively about the future and the sustainability of its earnings.

The post Why Challenger, Global Lithium, Leo Lithium, and Qantas shares are rising today appeared first on The Motley Fool Australia.

In morning trade, the ASX All Ords lithium share is up 5% to $1.46.

Why is this ASX lithium share charging higher?

Investors have been bidding this ASX lithium share higher today after the company released an update on its 100% owned Manna project in Western Australia.

According to the release, Global Lithium has completed the first stage of ore sorting trials at the project. This program is part of the wider scope of work that will progress the definitive feasibility study (DFS) towards completion by December.

The good news is that the ore sorting trials have resulted in a 90% increase in the lithium grade (Li2O) that was reported in the preliminary test work. In addition, there was an impressive 93% reduction in iron (Fe2O3) from the mixed waste and pegmatite sample.

Looking ahead, the company notes that bulk PQ diamond drill core has been collected for the 2023 metallurgical and DFS program. Two large samples will be generated to further test ore sorting technology and to confirm the overall lithium recovery and impurities that can be achieved through a larger representative sample.

Global Lithium's project director, Tony Chamberlain, commented:

The Manna Lithium Project has the distinct advantage of having great visual control between ore, which is predominantly white in colour, and surrounding waste rock which appears dark grey to black. Initial ore sorting results have shown the technology is a perfect fit for Manna with this impressive upgrade in lithium content.

Additional bulk diamond core has been obtained from Manna and further samples are being prepared for larger scale trials. Ore sorting technology will ultimately provide greater operational flexibility within the mining operation and increase head grade to the mill. We look forward to updating the market with further results from these trials as activities continue towards completion of the Manna DFS by December 2023.

The post Why is this ASX All Ords lithium share charging higher today? appeared first on The Motley Fool Australia.

The mature producers are well-bought already, while the stocks for exploration companies are cheaper to compensate for the risk that they might find nothing.

If only there was a Goldilocks stock? Not too hot, not too cold, but just right.

Earlier this month, the team at Market Matters already revealed their preferred lithium plays as Pilbara Minerals Ltd (ASX: PLS) and Global Lithium Resources Ltd (ASX: GL1).

But this week it admitted there is a third way that also looks favourable.

"We have Pilbara given it's producing, throwing off lots of cash etc, while we also own Global Lithium, which is a higher risk exploration company," Shaw and Partners portfolio manager James Gerrish said in a Market Matters Q&A.

"Core Lithium (ASX: CXO) is in between these two in terms of risk profile."

Producing lithium already with many years of growth to come

Indeed, Core Lithium is already extracting lithium as we speak.

But that's in its early days, and Gerrish's team is looking forward to a lift in production.

"I think it is [a buy] with FY24 being the year where earnings really start to ramp up," said Gerrish.

"We like it, and believe it will trade higher from here."

The Motley Fool's Bernd Struben is also a fan of Core Lithium shares because of the company's Finniss Lithium Project near Port Darwin.

"The timing of the project couldn't be better," he said.

"Finniss achieved first spodumene concentrate production in February. The miner's maiden 3,500-tonne spodumene concentrate parcel was transported to Darwin in March and early April."

According to Struben, the project will extract an average of 160,000 tonnes of battery-grade lithium concentrate annually over a 12-year mine life.

"Core Lithium does have a smaller resource than some of its peers. However, on 18 April, it announced the Finniss Mineral Resource had increased by 62%."

The Core Lithium share price has rocketed almost 40% since a March trough.

According to CMC Markets, two out of nine analysts who currently cover the stock reckon it's a strong buy. Three rate it a hold, while four are urging investors to sell.

The post Just right: Is this the Goldilocks ASX lithium share? appeared first on The Motley Fool Australia.

Lithium shares rising include:

• Allkem Ltd (ASX: AKE) shares are soaring 15%
• Core Lithium Ltd (ASX: CXO) shares are gaining 3%
• Pilbara Minerals Ltd (ASX: PLS) shares are lifting 5%
• Sayona Mining Ltd (ASX: SYA) shares are leaping 4%
• Lake Resources N.L. (ASX: LKE) shares are surging 13%
• Piedmont Lithium Inc (ASX: PLL) shares are jumping 4%
• Global Lithium Resources Ltd (ASX: GL1) shares are rising 8%

Let's take a look at what's boosting ASX lithium shares today.

What's going on?

Lithium sentiment appears strong on the market today following news out of Allkem.

Allkem and Livent Corp (NYSE: LTHM) are planning to merge into a US$10.6 billion global lithium company known as "New Co".

This deal is due to be finalised by the end of the year, subject to approvals, and would see Allkem shareholders owning 56% of the company, compared to a 44% stake for Livent shareholders.

Allkem's portfolio of lithium assets includes the Olaroz project in Argentina and Mt Cattlin in Western Australia.

Livent Corp shares rocketed 5% in the United States overnight and a further 0.39% in after-hours trade on the New York Stock Exchange.

Headquarters are planned for North America and the company would list on the New York Stock Exchange. A foreign exempt listing via Chess Depository Interests would also be maintained on the ASX.

Commenting on the news, Allkem CEO Martín Pérez de Solay said:

We are bringing together two highly complementary businesses to create a leading global lithium chemicals company, building on Allkem's demonstrated track record of integration.

The vertically integrated NewCo will improve delivery of high-quality, value-added products to our diverse customer base and unlock material synergies. 

Lake Resources is among the ASX lithium shares storming higher today. Lake has four lithium brine projects in Argentina including the Olaroz and Kachi projects.

Meanwhile, the lithium price is also continuing to recover. Lithium carbonate (99.5% battery grade) has risen 6.65% on the Shanghai Metals Market to US$30,173.22.

Lithium hydroxide (56.5% battery grade) is also up 1.56% to US$28,219.56.

In the United States overnight, Sociedad Quimica y Minera de Chile (NYSE: SWM) shares jumped 1.29%, while Albermarle Corporation (NYSE: ALB) shares slipped 0.34%.

Share price snapshot

Allkem shares have risen 32% in the last year, while Lake shares have fallen 60%.

Pilbara Minerals has exploded 82% in the past year, while Core Lithium shares have slid 8% and Sayona Mining shares have lost 17%.

Piedmont Lithium shares have jumped 21% in the last year, while Global Lithium Resource shares have risen 2%.

The post ASX lithium shares rocket higher amid Allkem merger news appeared first on The Motley Fool Australia.

This is especially because of one modern phenomenon.

"Lithium-ion batteries are not new — they've been powering laptops, mobile phone batteries, and even off-grid camping setups for some time," Shaw and Partners portfolio manager James Gerrish said on Market Matters. 

"However, it's the growth in electric vehicles that is driving the demand for this lightweight, high-energy-density input."

If you're spooked by the 70% pullback in lithium price over the past half-year, Gerrish reminded that it shouldn't affect the long-term worthiness of those stocks.

"Commodities are cyclical… high prices incentivise new production that ultimately solves those high prices," he said.

"While we cannot see lithium prices re-scaling the 2022 highs for many years, there is still plenty of opportunity."

In fact, the sell-off has made it a tempting time to buy.

"Following a sharp correction, Market Matters believes the risk/reward in lithium & other related commodities has improved."

Let's take a look at the three ASX shares Gerrish nominated as the best buys in the battery materials space:

10% profit in 2 weeks? Yes, please

Pilbara Minerals Ltd (ASX: PLS) is the pick of the lot for Gerrish at the moment. He would use any daily dips to buy more.

"We recently bought Pilbara Minerals in the Flagship Growth Portfolio and are now sitting on a ~10% paper profit in around two weeks," he said.

"We view Pilbara as the lower-risk exposure in a risky sector, where growing production will underpin growing earnings and dividends."

He admitted the last guidance showed costs heading up for the lithium miner.

"Pilbara reported average realised price of US$4,840/t which was down 15% Q/Q and that theme will continue, but the margins for this early producer remain solid."

The company's financial position looks secure enough to keep pumping out the dividends.

"Their cash balance rose $457 million in the quarter, pushing their bank balance up to a net cash position of ~$2.7 billion. This will support fully franked dividends in the range of 5%."

A more speculative punt for Gerrish is Global Lithium Resources Ltd (ASX: GL1), which he described as "a higher-risk exploration company with solid upside".

"Global is a $400 million lithium exploration company that is not in production and is therefore not producing earnings," he said.

"However, they are undertaking a large-scale exploration program at their Western Australia assets with good prospects in a solid area around Kalgoorlie."

Recent test results were "encouraging", he added.

"They are progressing through various stages of permitting and feasibility in their two operations."

On the rare earths side, Gerrish is "long and bullish" on Iluka Resources Limited (ASX: ILU).

"They are advancing the Eneabba phase 3 project, which consists of the construction of the first integrated rare earths facility in Australia — and this remains on track."

Iluka's bread and butter is mineral sands, which doesn't attract as high a valuation as rare earths producers.

But this is why it might prove to be a bargain buy right now.

"The proportion of their earnings that will come from rare earths in the future will increase meaningfully, from ~3% today to around 15% in the next 5 years."

The post The 3 best lithium and rare earths ASX shares to buy right now appeared first on The Motley Fool Australia.