Not only that, but top broker Goldman Sachs reckons lithium commodity prices won't bottom until 2025.

Despite this gloomy backdrop, several directors of two beaten-up ASX lithium micro-caps are ploughing more of their own investment funds into their companies this week.

Which directors are buying ASX lithium shares?

Patrick Murphy, a non-executive director of lithium explorer Green Technology Metals Ltd (ASX: GT1), is our first buyer.

Murphy snapped up 362,610 shares on-market over three days in late December and early January. The series of trades cost him a little over $100,000 at an average price of 27.6 cents.

And he's not the only director buying.

Last month, Cameron Henry also bought 386,148 Green Technology shares for close to $100,000 on-market. He paid an average of 25.9 cents per Green Technology share.

John Young also bought 750,000 shares over two days on-market at an average price of 26.1 cents for a total investment of $196,196.

The buys followed a capital raise in December that raised $14.6 million through the issue of 39,477,680 new shares at 37 cents per share.

The Green Technology share price is currently 19 cents, down 5% for the day. There is no official news relating to the ASX lithium share today.

ASX lodgements also reveal that two directors of Nova Minerals Ltd (ASX: NVA) have also been buying up more shares.

Chris Gerteisen spent just over $15,000 buying 45,000 Nova Minerals shares this week at an average price of 33.8 cents.

The notice also revealed that he let 500,000 unquoted director options expire on 29 December. They were exercisable at 75 cents per share.

Also this month, Craig Bentley bought 200,000 Nova Minerals shares for a tad under $68,000. That's an average price of 33.9 cents per share.

The Nova Minerals share price is currently 33 cents, up 1.54% for the day. There is no news from the company today.

The post 2 beaten-up ASX lithium shares being bought up by directors appeared first on The Motley Fool Australia.

Which ASX mining insiders are buying?

Our first ASX mining insider buy is that of Todd Hannigan, executive chair of titanium developer IperionX Ltd (ASX: IPX).

Hannigan splashed out almost $650,000, buying 465,442 additional IperionX shares on-market between 27 December and 3 January.

In a letter to shareholders on Tuesday, IperionX CEO Anastasios Arima said 2024 would be "a critical inflection point" for the company with the commissioning of its first commercial titanium production facility.

The IperionX share price closed at $1.47, down 2% on Tuesday.

Another ASX mining director buying up new shares is Atlantic Lithium Ltd (ASX: A11) CEO Keith Muller.

He invested $40,000 in 100,000 additional shares purchased on-market on 2 January.

Atlantic Lithium is an African-focused lithium explorer that hopes to deliver Ghana's first lithium mine.

The flagship Ewoyaa Project has a production capacity of 3.6Mt of spodumene concentrate over a 12-year mine life. This makes it one of the world's top 10 spodumene concentrate mines.

Atlantic Lithium was granted a mining lease for Ewoyaa in October 2023.

The Atlantic Lithium share price closed at 40.5 cents, up 1.25% on Tuesday.

Also celebrating the new year with new share buys is ASX mining insider Patrick Murphy. He's a non-executive director of lithium explorer Green Technology Metals Ltd (ASX: GT1).

Murphy ploughed just over $100,000 into the company over three days in late December and early January. He purchased 362,610 shares on-market.

Green Technology Metals undertook a capital raise in December that raised $14.6 million through the issue of 39,477,680 new shares using 'flow-through shares' provisions allowed under Canadian tax law.

The issue price was 37 cents per share. The funds will be used for continued exploration at Root Bay and the maiden drilling program at the Junior Lithium Project.

The Green Technology share price closed at 20 cents yesterday, down 2.44%.

The post 3 ASX mining insiders celebrating the new year with more share buys appeared first on The Motley Fool Australia.

Other popular ASX lithium stocks are also rising.

Sayona Mining Ltd (ASX: SYA) is up 5.3%, Core Lithium Ltd (ASX: CXO) is up 2.6%, Allkem Ltd (ASX: AKE) is up 2.1%, and Pilbara Minerals Ltd (ASX: PLS) is up 0.9%.

In this article, we look at new research showing which ASX lithium shares are attracting cashed-up millennial investors.

And a little clue — they're none of the above.

The ASX lithium shares that rich millennials love

Data from trading platform Selfwealth Ltd (ASX: SWF) shows the top five stocks purchased by millennial millionaires.

The data tracked trading activity between 1 July and 7 August.

Millionaire investors were defined as those with portfolios worth $1 million or more.

As reported in The Age, there were two ASX lithium shares among the top five stocks traded by millionaire millennials.

They are Leo Lithium Ltd (ASX: LLL) in second spot and Green Technology Metals Ltd (ASX: GT1) in fifth spot.

What's the latest news with Leo Lithium?

Leo Lithium shares remain voluntarily suspended at the request of the lithium developer.

The ASX lithium share last traded at $1.14 on 18 July but has been frozen ever since.

The company is ready to start exporting direct shipped ore (DSO) from its Goulamina Lithium Project in Mali, West Africa.

However, the miner is now in discussions with the military-led Mali Government after receiving correspondence from the authority last month.

As my Fool colleague James previously reported, a number of African countries have banned DSO exports to encourage local processing to generate local jobs.

And the latest on Green Technology Metals?

This ASX lithium share is currently trading at 55 cents per share, down 0.9% for the day so far.

On Monday, the company released further assay results from its Root Bay lithium deposit.

Green Technology Metals is a Canadian-focused lithium miner. Among its assets is the 100% owned Root Project, located approximately 200km west of its flagship Seymour Project in Ontario.

CEO Luke Cox said:

The infill diamond drilling program is now over 50% complete at Root Bay and [we] are pleased to see
the continued consistent high-grade results, providing confidence in our maiden resource
estimate.

We are looking forward to receiving the remaining drill results at Root Bay and releasing our updated mineral resource estimate in the fourth quarter 2023.

The post Which ASX lithium shares are cashed-up millennials buying? appeared first on The Motley Fool Australia.

That's because resource stocks are notoriously cyclical. They fluctuate wildly on the whims of commodity prices, the global economy, and simple supply and demand.

That's why it pays to listen to the experts when they recommend mining stocks that are in the low part of their price cycle.

Here are two such picks from BW Equities equity salesperson Tom Bleakley:

This stock is the king of the hill

The global gold price has dipped slightly since the end of May.

However, with so much uncertainty surrounding the global economy, the so-called safe haven asset might still have some legs.

That's why Bleakley reckons now might be a great buying opportunity for producers like Red 5 Limited (ASX: RED).

"The company's King of the Hills gold mine in Western Australia produced 24,033 ounces in June, up from 19,039 ounces in May," Bleakley told The Bull.

"The company retains production guidance of between 90,000 ounces and 105,000 ounces in the second half of fiscal year 2023 at an all-in-sustaining cost of between AU$1,750 and AU$1,950 an ounce."

The Red 5 share price has risen more than 23% since the end of May.

The combination of economic factors and gold prices means Bleakley is thinking Red 5 shares still have more upside risk than downside.

"We expect favourable share price momentum to continue at this stage of the cycle."

Lithium demand will not wane anytime soon

The international lithium price seems to have stalled recently, just going sideways since 24 May.

But the demand for batteries for new-world devices like electric cars will only head upwards over the next few years.

This gives a junior miner like Green Technology Metals Ltd (ASX: GT1) plenty of upside potential.

"Green Technology Metals is a North American lithium exploration and development business," said Bleakley.

"We see strategic value in Green Technology Metals as it continues to grow its lithium resource."

The company's prospects just received a huge institutional endorsement, which is a great omen for retail investors.

"It recently received a $20 million strategic investment from LG Energy Solution (LGES) at a big premium to Green Technology Metals' share price," Bleakley said.

"The agreement includes an off-take term sheet for Green Technology Metals to sell 25% of its spodumene concentrate production from its flagship Seymour project to LGES for five years."

The post 'Strategic value': 2 ASX mining shares to buy now before they shoot up appeared first on The Motley Fool Australia.

The Green Technology Metals Ltd (ASX: GT1) share price is leaping 10% today on lithium news. For perspective, the broader S&P/ASX 200 Index (ASX: XJO) is 0.39% in the green today.

Let's take a look at what this ASX lithium share reported to the market today.

High grade intercepts

Green Technology Metals reported the "highest grade drill intercept to date" at the McCombe deposit within the Root Project.

This 100% owned project is located about 200km west of the company's Seymour Project in Ontario Canada.

Assay results showed drilling intersected with up to 4.06% lithium oxide (Li2O). Results included:

• 8 metres (m) at 1.72% Li2O from 64 m (including 2m at 4.06% Li2O from 64.6m) at drill hole RL-22-0013
• 8.4m at 1.32% Li2O from 102 m (including 1m at 3.91% Li2O from 103.6m) at drill hole RL-22-0014
• 13.4m at 1.24% Li2O from 28.9 m (including 1m at 3.16% Li2O from 29.3m) at drill hole RL-22-0015
• 6.3m at1.52% Li2O from 66.3 m (including 1.0m at 2.38% Li2O from 70.7m) at drill hole RL-22-0016A

So far, 31 drill holes have been drilled at the McCombe deposit and two diamond drill rigs are operating around the clock.

The company said it is on track to make a mineral resource estimate at the project in quarter one of 2023.

Commenting on the news, Green Technology CEO Luke Cox said:

Recent assay returns have confirmed that McCombe is higher grade than originally interpreted based on historical data.

The Root Project as a whole is also developing into a much larger complex, with McCombe potentially joining with Morrison to form a structure over several kilometres long, and recent spodumene discoveries at Root Bay confirming it extends east and west along a magnetic high.

Green Technology share price snapshot

The Green Technology Metals share price has exploded nearly 178% in the past year, while it is climbing 113% in the year to date.

For perspective, the ASX 200 has fallen nearly 3% in the last year.

This ASX lithium share has a market capitalisation of nearly $212 million based on the current share price.

The post Guess which ASX lithium share is leaping 10% on a new discovery appeared first on The Motley Fool Australia.

They're gaining as much as 24% right now following the release of exciting announcements.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is weighing on the market, falling 0.1%. For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.3% right now.

So, what have these tiny ASX mining shares announced to the market today? Keep reading to find out.

3 ASX mining shares soaring on new discoveries

Let's start with the once in a 'blue' moon – or at least, once in 50 years – discovery announced by Green Technology Metals Ltd (ASX: GT1).

The company has uncovered a new discovery, named Blue Bear. It marks the first new find at its flagship Seymour Lithium Project in more than half a century.

It will now push to delineate the discovery's scale and test further targets at the project. It's expected to culminate in an updated mineral resource estimate in the coming months.

The ASX mining share is soaring on the news, gaining 7% to trade at $1.07 right now.

It's joined in the green by its peer, Sarytogan Graphite Ltd (ASX: SGA). The stock has launched a whopping 28.3% to trade at 29.5 cents right now.

The graphite explorer announced high-grade drill results from its namesake project this morning. The drill program is still ongoing and is set to enable an updated mineral resource estimate in the first quarter of 2023.

The final ASX mining share taking off on news of a discovery today is Native Mineral Resources Holdings Ltd (ASX: NMR).

It released an update on drilling underway at Northern Queensland's Maneater Hill Polymetallic Sulfide Prospect. A second diamond drill at the project has intersected targeted sulfide breccia at a depth of 120 metres, confirming the potential that it extends further than anticipated.

The ASX mining share is up 5.7% right now, trading at 18.5 cents.

The post 3 ASX mining shares leaping higher on new discoveries today appeared first on The Motley Fool Australia.

Listed below are two small cap ASX lithium shares that have been tipped as speculative buys by analysts at Bell Potter.

Here's why the broker is bullish on them:

Green Technology Metals Ltd (ASX: GT1)

According to the note, the broker has a speculative buy rating and $1.37 price target on the company's shares. This compares favourably to the latest Green Technology Metals share price of 83 cents.

Bell Potter highlights that the company is well-placed to supply the massive North American electric vehicle (EV) market in the future. It commented:

GT1's hard rock lithium assets are located in Ontario Canada, on the doorstep of North America's fast evolving EV manufacturing sector. The company is fast tracking appraisal activities in partnership with leading mineral investment and processing groups and established North American lithium developers. GT1's asset locations bring ESG benefits through proximity to end markets and the potential to employ established low-carbon electricity generation through its processing operations. Our valuation is supported by modelling a potential project development at Seymour.

Red Dirt Metals Ltd (ASX: RDT)

Another small cap ASX lithium share that the broker is positive on is Red Dirt Metals. Its analysts currently have a speculative buy rating and 95 cents price target on its shares. As a comparison, the Red Dirt Metals share price is currently fetching 72 cents.

The broker notes that this Western Australia-based lithium explorer owns the Mt Ida Lithium Project. It has also recently acquired the promising Yinnetharra Lithium Project. The latter is a 520 km2 exploration project which has identified potential lithium mineralisation-hosting geology at surface over a 7km strike length. Its analysts commented:

RDT is leveraged to the electrification thematic, and growing lithium market demand. The company is now advancing two pre-Resource, Western Australian, lithium projects. […] Our valuation is supported by a risked and diluted assessment of a potential project development at the Mt Ida Lithium Project, which we estimate could convert to a Reserve of 10Mt at 1.4% Li2O, supporting a 10-year mining project and concentrating at least 1 Mtpa of ore to produce at least 210 ktpa of SC6 (31 ktpa LCE).

The post Broker names 2 small cap ASX lithium shares to buy appeared first on The Motley Fool Australia.

The upgrade comes a month after fellow broker Goldman Sachs tipped a "sharp correction" in lithium prices due to an impending oversupply, which sent ASX lithium share prices tumbling.

According to reporting in The Australian, Macquarie reckons new supply from up-and-coming spodumene producers won't reach a material volume until 2023.

So, that will support lithium prices as strong demand for the commodity continues, particularly from the burgeoning electric vehicle (EV) market.

In fact, the broker says this demand could potentially more than offset any increase in lithium supply.

Forecast for lithium price up 8% to 13%

Macquarie "now expects spodumene prices to peak at US$4,900 a tonne in the September quarter", according to the article.

As a result, it has upgraded its short-term and medium-term forecasts by 8% to 13% per tonne.

The article quoted Macquarie as saying the upgrade reflects the "persisting market deficit despite an accelerating supply response".

The broker noted that spot lithium prices in China were increasing after a recent correction.

Macquarie describes the lithium market as remaining "tight". Rebounding EV sales are supporting the price after supply chain issues caused by COVID-19 lockdowns in China resulted in a lull.

What does this mean for ASX lithium shares?

Like any ASX resources company, lithium miners are price takers. The higher the lithium price is, the more profit they make. And vice versa.

ASX lithium shares have become a very popular part of the equities market. Governments, businesses and consumers around the world are finally taking climate change seriously. This is giving momentum to pretty much any company involved in the green energy supply chain.

Time will tell whether all these young growing companies in lithium mining will end up creating an oversupply, which would likely reduce lithium prices.

Which ASX lithium shares should you buy?

As my Fool colleague James reported recently, broker Bell Potter has a buy rating on four ASX lithium shares.

Bell Potter's lithium share picks are as follows:

• Allkem Ltd (ASX: AKE) with a share price target of $17.53 (buy)
• Green Technology Metals Ltd (ASX: GT1) with a share price target of $1.37 (speculative buy)
• Lake Resources N.L. (ASX: LKE) with a share price target of $2.83 (speculative buy)
• Liontown Resources Limited (ASX: LTR) with a share price target of $3.06 (speculative buy).

These ASX lithium shares have all fallen substantially over the past month since Goldman's note.

• Allkem shares are down 26% over the past month to $9.64 at market close on Thursday
• Green Technology shares are down 33% to 57 cents
• Lake Resources shares are down 54% to 70 cents
• Liontown Resources shares are down 33% to 88 cents

The post Could ASX lithium shares be set for a boost? appeared first on The Motley Fool Australia.

This has led to many ASX lithium stocks recording sizeable declines in recent weeks and months.

The good news, though, is that this may have created a buying opportunity for investors, according to analysts at Bell Potter.

This morning the broker named four ASX lithium stocks that it rates as buys. They are as follows:

Allkem Ltd (ASX: AKE)

Bell Potter has a buy rating and $17.53 price target on this lithium producer's shares. This implies potential upside of almost 80% for investors based on the current Allkem share price of $9.76.

The broker is expecting Allkem's cash generation and profits to grow materially in the coming years. It explained:

We expect AKE's near term cash generation to lift substantially into 2023 as strength in lithium commodity indices flows through to lagged realised prices. AKE is aiming to maintain 10% share of supply in a global lithium market experiencing unprecedented growth.

Green Technology Metals Ltd (ASX: GT1)

Its analysts are also bullish on this lesser-known ASX lithium stock. The broker currently has a speculative buy rating and $1.37 price target on its shares. This suggests potential upside of 95% for investors from current levels.

Bell Potter highlights that Green Technology Metals' assets are in close proximity to key North American battery minerals markets. It said:

GT1 is in a strategic position in the fast evolving battery minerals supply chain with an existing lithium resource, a highly prospective tenement position and its strong ESG focus.

Lake Resources N.L. (ASX: LKE)

Another lithium stock Bell Potter is bullish on is Argentina-based Lake Resources. It currently has a speculative buy rating and $2.83 price target on its shares. This implies potential upside of over 90% for investors.

The broker is a fan of the company due to its 50ktpa lithium carbonate Kachi Lithium Brine Project in Argentina. It commented:

This project is expected to employ direct lithium extraction technology which has enormous ESG benefits compared with incumbent brine and hard rock lithium production methods. With this development project, uncommitted product offtake and an independent share register, LKE has significant strategic appeal.

Liontown Resources Limited (ASX: LTR)

Finally, the broker also has speculative buy rating and $3.06 price target on this lithium developer's shares. This suggests that there is potential for 200% upside over the next 12 months.

Bell Potter commented:

LTR is funded for Kathleen Valley's initial development capital where a definitive feasibility study outlined 658ktpa SC6 production and potential for conversion into 86ktpa lithium hydroxide. LTR is independent and debt free; a strong strategic position in a market for lithium facing supply shortages.

The post Top broker names 4 ASX lithium stocks to buy now appeared first on The Motley Fool Australia.

The company's shares jumped 146% to 35.4 cents before being placed on ice. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 0.86% today.

Let's take a look at what's going on at Greentech Metals.

What's going on at Greentech Metals?

Greentech Metals shares exploded earlier today on the back of strong copper and zinc results.

However, the explorer has since entered a trading halt pending "clarification" of today's announcement.

Before the trading halt, Greentech Metals reported high-grade copper and zinc mineralisation at the Whundo project. This is located 40km from Karratha in the west Pilbara region of Western Australia.

Assay results showed "broad mineralised zones" with a range of high-grade intercepts at five of the drill holes.

Copper and zinc mineralisation extended beyond the resource envelope. Gold grades of up to 3.34 grams per tonne of gold were also found among the copper zones.

Commenting on the news, executive director Thomas Reddcliffe said:

Results from the initial laboratory assays received to date confirm the high-grade tenor of
copper and zinc mineralisation at Whundo which is at the core of a much broader copper
and zinc mineralised system.

Pleasingly, the Whundo mineralisation carries notable gold grades, which as a credit, further enhances the potential economics of the project.

Greentech Metals will be in a trading halt until the clarification is made. The company expects this to be prior to market open on 20 June.

Greentech Metals share price snapshot

The Greentech Metals share price has jumped nearly 73% year to date, while it has soared 109% in the past month.

For perspective, the benchmark ASX 200 materials index has climbed nearly 2% year to date.

Greentech Metals has a market capitalisation of about $10.8 million based on its current share price.

The post Why did the Greentech Metals share price just explode 146% before being halted? appeared first on The Motley Fool Australia.

Let's take a look at which three ASX companies — all involved in developing minerals used in the manufacture of electric vehicles — are having a good year.

Arafura Resources Limited (ARU)

Arafura Resources shares have soared 67% year to date. The company is developing rare earths at the Nolans project in the Northern Territory. One major piece of news that drove the ASX mining share higher in March was a $30 million grant from the Federal Government. The grant will help fund a $90.8 million separation plant at the Nolans project.

Commenting on the news, managing director Gavin Lockyer said:

This grant is an exciting milestone for Arafura, recognising the strategic significance of the Nolans Project and its place in the future of critical minerals processing in Australia.

The company is hoping to supply about 5% of the world's NeodymiumPraseodymium (NdPr) demand from the Nolans project. Rare earths are a crucial component in the manufacture of electric vehicles (EV).

In more positive news for the company, Arafura was listed on the  All Ordinaries Index (ASX: XAO) in early March.

Green Technology Metals Ltd (GT1)

The Green Technology Metals share price has rocketed 58% year to date. The company is working on lithium projects at Root Lake, Seymour Lake, and Wisa Lake.

In major news for the ASX mining share in late April, Green Technology Metals announced major US lithium player Lithium Americas Corp (NYSE: LAC) will invest US$10 million in the company.

Drilling results in early April may have also helped the company's share price. Drilling at the Seymour lithium project in Ontario, Canada intercepted thick, high-grade lithium oxide.

Group 6 Metals Ltd (G6M)

The Group 6 Metals share price has surged 83% year to date. The company is redeveloping the Dolphin tungsten mine in Tasmania to explore tungsten. This is another rare metal that can be used in lithium-ion batteries.

This ASX mining share has recently received attention from the United States. Chairman Johann Jacobs has been in conversations with the US embassy lately about the mine. China has a global dominance in the tungsten market, but Group 6 provides a potentially new supply chain.

Commenting on the meetings with the US embassy, Jacobs said:

At this stage, they don't have any financial interest, but they certainly are very keen to see us progress and develop the mine because it's another supply chain… from a friendly nation.

In February, Group 6 reiterated its commitment to developing the Dolphin mine, describing it as the "highest-grade tungsten deposit of significant size in the Western World".

The post Battery-powered! 3 ASX mining shares up more than 50% in 2022 appeared first on The Motley Fool Australia.

Minutes after the market open this morning, the ASX lithium share surged to an all-time record high of $1.25. That's a 7.75% bump on yesterday's closing price of $1.16.

Let's take a look at what this ASX lithium explorer announced to the share market today.

Lithium Americas invests in Green Technology Metals

Green Technology Metals is conducting a share placement in two stages to raise about $55 million.

The company said it has received firm commitments for a two-tranche placement of 52.4 million new shares at $1.05 each. This is a 9.1% discount on the stock's last closing price before yesterday's trading halt.

Lithium Americas Corp (NYSE: LAC) is investing US$10 million in Green Technology Metals as part of this placement. Lithium Americas is developing lithium in Argentina and Nevada, US. The company has a market capitalisation of about US$3.4 billion.

Commenting on the news, Green Technology Metals CEO Luke Cox said:

We are delighted to have secured such a strong spread of new and existing investors to this transformational equity raising.

The endorsement of leading lithium company, Lithium Americas, also reinforces our positive view on the prospectivity of our assets.

Green Technology Metals will use the funds from this capital raise for exploring and developing lithium assets in Ontario, Canada. This includes completing a feasibility study for the Seymour Lithium Mine project.

Recapping the growth of this ASX lithium share

The Green Technology Metals share price has surged 81% in the year to date and 205% in the past year. In comparison, S&P/ASX All Ordinaries Index (ASX: XAO) has fallen 3.8% in the year to date and gained 4% over the past 12 months.

Green Technology Metals has a market capitalisation of about $232.78 million.

The post Green Technology Metals share price lifts on Lithium Americas investment appeared first on The Motley Fool Australia.

This comes as the company requested that its shares be placed in a trading halt.

At the time of writing, the Canada-based lithium explorer's shares are frozen at $1.155 apiece.

Why is the Green Technology Metals share price halted?

Prior to the market opening, management requested the Green Technology Metals share price be halted while it prepares an announcement.

According to the release, the company is planning to make an announcement regarding a cornerstone investment and associated capital raise.

Green Technology Metals requested that the trading halt remains in place until Friday 29 April or following the release of the announcement, whichever comes first.

More on Green Technology Metals

Green Technology Metals is a North American-focussed lithium exploration and development business.

Located on highly-prospective Archean Greenstone tenure in northwest Ontario, Canada, the company has several lithium projects. They include high-grade, hard rock spodumene assets (Seymour, Root, and Wisa) and lithium exploration claims (Allison and Solstice).

Most notably, the company's flagship Seymour Lithium project has an existing mineral resource estimate of 4.8 Mt @ 1.25% Li2O.

Earlier this month, management announced it recently intercepted high-grade lithium oxide from the North Aubry deposit at Seymour.

While the maiden drilling program has since been completed, the company is currently conducting both phase two (Central Aubry zone) and phase three (Pye prospect) drilling.

About the Green Technology Metals share price

Since listing in November 2021, the Green Technology Metals share price has surged by more than 360%.

In 2022, its shares are up 122% which has been supported by positive investor sentiment in the lithium sector.

Based on valuation grounds, the company has a market capitalisation of roughly $122.43 million, with 106 million shares outstanding.

The post Why is the Green Technology Metals share price on ice today? appeared first on The Motley Fool Australia.

The Green Technology Metals Ltd (ASX: GT1) share price has surged 29.78% since 28 March. In Tuesday's trade, the company's share price climbed another 5% to $1.155.

Let's take a look at what is driving this share price boost.

This ASX lithium share just keeps on rising

This ASX lithium share may be on the rise in the last month, but it is not a new trend. In fact, the Green Technology Metals share price has rocketed more than 200% in the past six months.

The Western Australian company is one of many ASX lithium players to surge recently amid the rising demand for electric vehicles (EVs). Lithium is an essential component of EV batteries. Deloitte predicts electric vehicle sales will make up 32% of the car sales market by 2030.

Green Technology Metals is exploring the Seymour Lithium project in Ontario, Canada.

On 12 April, Green Technology reported drilling intercepted "thick, high grade" lithium oxide.

Commenting on the results, CEO Luke Cox said:

The phase 1 drilling program at Seymour continues to deliver excellent outcomes. The latest set of assays have returned further thick, high-tenor intercepts that significantly extend the known boundaries of the North Aubry deposit.

On 28 March, Green Technology Metals furthered its joint venture interest in Ontario Lithium Projects by 29% to 80%, up from 51%. This includes the Seymour, Root and Wisa projects.

Share price snapshot

The Green Technology Metals share price has soared 122% in the year to date and 28% in the past week.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen nearly 2% in the year to date.

The ASX lithium share has a market capitalisation of $122 million based on the current share price.

The post Guess which ASX lithium share has leapt 30% in a month to trade at all-time highs? appeared first on The Motley Fool Australia.

At the closing bell, the company's shares were swapping hands for 83 cents, up 1.84%. However, in earlier trade, they hit 95 cents, a 16.5% gain on yesterday's closing price.

Let's take a look at what might be impacting the company's share price.

Lithium exploring

The Green Technology share price has been on a roll since the start of the year. Since the market closed on 31 December, the explorer's shares have exploded by 59.6%. They have finished in the green every day this week, including soaring by 13.77% on Tuesday.

Investors may be reacting to strong demand for lithium and a tightening supply. Lithium carbonate prices in China have soared 10% from 277,500 yuan per tonne to 306,500 yuan per tonne since the start of the year.

Bloomberg reported on Wednesday supplies of the battery commodity are at risk, while demand is increasing due to growing electric vehicle uptake. Plant maintenance and Winter Olympic restrictions in China and labour shortages in Australia were cited as reasons for the supply issue.

Additionally, Liontown Resources CEO Tony Ottaviano on Wednesday played down concerns by some analysts over a lithium supply glut. He noted the difficulties for smaller companies entering the lithium space. 

Positive broker notes on the lithium sector may also be weighing on investors' minds. As my Foolish Colleague Brooke reported on Tuesday, multiple brokers are optimistic about the commodity. JP Morgan expects the lithium market will grow 24% by 2030, while S&P Global Platts predicts a supply shortfall of 5,000 megatons of lithium carbonate in 2022.

In December Green Technology advised it had commenced drilling at the Seymour lithium asset in Ontario, Canada. Drilling is expected to be completed by March 2022. Results from the drilling are not yet available.

Also, on 4 January, the company provided a response to a price query from the ASX. Green Technology confirmed it is complying with the listing rules and is not aware of any information not released to the market that could explain recent trading of its shares.

That day, Green Technology shares hit a new record high of 68 cents amid optimism over the impending drilling results.

Green Technology share price snapshot

The Green Technology share price has soared 140% in the past months and 33% in the past week.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned 1.6% in the past month.

The company commands a market capitalisation of roughly $160.9 million based on the current share price.

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At one stage today, the Canada-based lithium explorer's shares were up as much as 30% to a record high of 68 cents.

The Green Technology Metals share price has since pulled back a touch but remains up 18% to 61.5 cents currently.

Why is the Green Technology Metals share price rocketing higher?

Investors have been bidding the Green Technology Metals share price higher today amid optimism over impending drilling results.

The company recently announced the commencement of drilling activities at the North Aubry deposit within its Seymour Project in Ontario, Canada.

This Phase 1 program comprises a planned 11 holes for approximately 3,500m and is designed to evaluate both along-strike and up to 150m down-dip extensions of the Aubry North deposit that are currently open and untested.

Management notes that examples of these extensional targets include the final step-out drill hole at North Aubry under its previous owner, Ardiden Limited, which returned 40m @ 2.4% Li2O.

And while completion of the Phase 1 drilling at Seymour is scheduled for March, the company revealed on social media that it is expediting some assays. This could mean early to mid January the company will give investors a taste of what's to come from the full drilling results.

Management certainly appears optimistic on its prospects at the Seymour Project.

In December, Chief Executive Officer Luke Cox commented: "We are excited to be commencing drilling at Seymour so rapidly. This outcome is a direct result of what has been achieved by both our Canadian and Australian operational and technical personnel in recent months."

"Our aspirations for the Seymour Project are substantial and clear – and we deeply believe in the significant exploration upside to underwrite them. Building lasting local partnerships, testing our advanced exploration model, and generating shareholder value in doing so, is our immediate focus there," he added.

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Investors aren't enticed by a company announcement from Green Technology updating its Seymour Lithium asset in Canada.

Volume of Green Technology shares traded today is also just 8% of its 4-week average at just 594,005.

Let's take a closer look at what the company released earlier.

What did Green Technology announce?

Green Technology advised that it is rapidly ramping up exploration activities at the Seymour Lithium Asset in Ontario, Canada.

This includes an aerial geophysical survey that covered well over 1,000-line kilometres at high resolution at Seymour. The survey was conducted by MPX Geophysics, a leading geophysical consultant based in Ontario, Canada.

Green Technology's exploration team has been active on the site and has been sampling various anomalies found in the field.

The company reports "very encouraging" results with large pegmatites exposed at the surface and mapped along several of the identified geophysical anomalies.

Samples are being examined to ensure both lithium and alteration data is captured.

Green Technology also announced that it had signed an amended Early Exploration Agreement (EEA) with the Whitesand First Nation.

The company says its manager of North America operations, Matt Herbert, met with Whitesand First Nation chief Allan Gustafson, and Band Manager Craig Toset to formalise and execute the EEA.

Execution of the EEA was the final step in Green Tech's commencement of drilling activities at Seymour. It has a diamond drilling program planned over the next few months, as per the release.

The company is hoping to "substantially extend and grow the existing Mineral Resource of 4.8Mt @ 1.25% Lithium Oxide". It also has an exploration target of 22-26 Mt at 0.8-1.5% Li2O.

As such, Green Tech is set to commence its drilling program with the next few weeks. Afterwards, it will enter the 9th phase of its Seymour project.

Here investors will learn of the updated mineral resource and geographical modelling after phase 1 of the drilling program.

Speaking on the announcement, Green Technology CEO, Luke Cox said:

We couldn't have asked for a better set of initial aerial geophysics at Seymour. The alignment of identified anomalies with existing resources and key target areas is strong, and the prospectivity of recently mapped targets has also been substantially enhanced by these geophysical results. In short, the potential for additional stacked lithium-bearing pegmatites at Seymour is real. We have been systematic in our approach from the outset and are now very excited about commencing extensional and step-out drilling of these targets at Seymour.

Green Technology share price snapshot

After listing recently, Green Technology has already shot up 56% to its current levels. Following its IPO, where it entered the market at 25 cents per share, investors have been securing long positions in the company at a rapid pace.

The offer surpassed expectations as the company expected to enter with a market capitalisation of around $50 million but is now trading on a market cap of $77 million.

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The company's prospectus offered shares in the lithium explorer and developer for 25 cents apiece but the market appears to see additional value in its stock.

At the time of writing, the Green Technology Metals share price is trading at 41 cents. This, after the company's newly minted stock has already seen an intraday high of 50 cents — a 100% gain.

Let's take a closer look at the ASX's newest face.

Green Technology Metals share price starts strong

All eyes are on the Green Technology Metals share price today as the company's initial public offering (IPO) is blown out of the water.  

The company listed at midday AEDT. Since then, it has seen its value increase by nearly three-quarters of its offer price.

That leaves Green Technology Metals with a market capitalisation of around $82.9 million. For context, at its offer price, the company expected a market capitalisation of approximately $49.3 million.

Right now, more than $8.6 million in Green Technology shares has swapped hands since it listed.

Green Technology Metals earned around $24 million through its IPO which received the maximum number of applications and, thus, saw 96 million new shares handed to investors.

9.2% of the company's shares at the time of listing are owned by insiders.

About the company

Green Technology Metals is a lithium-focused resource explorer. It has the option to earn an 80% interest in 3 lithium prospective projects, all located in Ontario, Canada.

Right now, Green Technology Metals has a 51% holding in the projects as part of a joint venture with Ardiden Ltd (ASX: ADV).

Green Technology has the option to receive another 29% holding by providing Ardiden with $3.5 million in cash or scrip.

Previously, the company has provided Ardiden with $1.5 million to begin the joint venture, as well as 9 million Green Technology shares and $1.75 million of cash during its IPO process.

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