The Africa-based ASX lithium stock has been out of action since the middle of September.

This has been caused by issues arising from the introduction of a new Mining Code in Mali which impacted its Goulamina Lithium Project.

What's going on with this ASX lithium stock?

The good news for shareholders is that the company's shares could soon return to trade.

That's because this morning, Leo Lithium announced that it has come to an agreement with the Mali Government.

According to the release, Leo Lithium and its joint venture partner, Ganfeng Lithium, have signed a memorandum of understanding (MoU) with the Government of Mali which resolves all outstanding issues.

This includes Leo Lithium entering into a further binding share sale and purchase agreement (SPA) to sell its remaining 40% interest in the Goulamina Lithium Project to Ganfeng Lithium for US$342.7 million.

The previously agreed co-operation agreement, which included offtake rights, will be terminated. However, Ganfeng will pay a 1.5% gross revenue fee over 20 years to Leo Lithium in exchange for the offtake and other rights given up.

Sale breakdown

The ASX lithium stock advised that the US$342.7 million cash consideration that is payable by Ganfeng Lithium is structured as follows:

• US$10.5 million non-refundable deposit to be paid within 10 days of executing the sale and purchase agreement.
• US$161.0 million payable on completion of the transaction following satisfaction of conditions precedent.
• US$171.2 million payable on 30 June 2025 or an earlier date.

Management notes that US$342.7 million is equivalent to A$0.43 per Leo Lithium share. This compares to its most recent share price of A$0.505.

When will Leo Lithium shares return?

With these issues now resolved, it may not be long until we see this ASX lithium stock trading again.

Management advised that it will discuss with ASX the necessary next steps to lift the suspension. Though, it concedes that the lifting of the suspension will be at the discretion of the ASX. An update will be provided in due course.

Leo Lithium Managing Director, Simon Hay, believes the agreement is in the best interests of shareholders. He said:

Despite our best efforts to reach a viable agreement with the Mali Government and considering the increasing risks associated with operating in Mali, the impact of the new 2023 Mining Code and the Company's financial position for future funding, the Board of Leo Lithium has determined that a sale of the Company's remaining interest in Goulamina is in the best interests of Leo Lithium shareholders. The Board believes the executed Sale and Purchase Agreement with Ganfeng provides our shareholders with certain value under highly challenging circumstances.

Our relationship with Ganfeng remains strong, and we look forward to the next phase of our partnership. We have deeply appreciated our shareholders' patience and support whilst we worked to settle this issue with the Mali Government. Given the circumstances, we believe this settlement and sale of the Project to Ganfeng represents the best outcome for all Goulamina stakeholders.

The post ASX lithium stock suspended for 8 months gearing up to resume trading appeared first on The Motley Fool Australia.

But that doesn't mean the embattled lithium developer hasn't been busy behind the scenes.

This morning, the company released a quarterly update, which provided investors with an idea of what's been going on at its Goulamina operation in Mali.

What did Leo Lithium say?

According to the release, the company has made further progress at Goulamina, which is the world's fifth largest spodumene deposit.

Its mining contractor mobilised their main fleet to site during the quarter and 549,000 bulk cubic metres of material were mined.

In addition, construction and mining activities have progressed with a workforce of 1,800. The initial commissioning team is mobilised and operational readiness planning has been launched.

All in all, management estimates that the project is approaching 60% completion.

This is being supported by its partnership with Ganfeng, which is China's largest lithium producer. During the quarter, a US$137.2 million Equity Investment Deed (EID) was executed and the first US$12.4 million funds were received.

When will Leo Lithium shares return?

As a reminder, Leo Lithium shares have been suspended pending an announcement in relation to correspondence from the government of Mali and the application of the 2023 Mining Code to the Goulamina Lithium Project.

This mining code reportedly allows the military-led government to increase its ownership in projects across the country to as much as 35%.

Unfortunately, it remains unclear when the company's shares will return to trade. Leo Lithium's managing director, Simon Hay, revealed that the two parties remain in talks. He said:

Leo Lithium continues to actively engage with the Mali Government to reach a constructive resolution, and we appreciate our shareholders' patience and support as we navigate through this process.

Nevertheless, Hay remains positive on the project's future. He concludes:

We hold a strong relationship with Ganfeng and we are pleased to report on the operational progress made on the ground in the quarter. Leo Lithium and Ganfeng continue to work towards bringing the project into production to become West Africa's first spodumene producer and supply the growing lithium-ion battery industry.

The post When will Leo Lithium shares return to trade? appeared first on The Motley Fool Australia.

However, that won't be the case, with the lithium developer's shares being suspended indefinitely, this time by the ASX operator.

What's going on with Leo Lithium's shares?

Last month, the company's shares were slammed into another trading halt and suspension due to correspondence from the Malian junta government. It advised:

The Company requests a voluntary suspension pending an announcement in relation to correspondence from the government of Mali and the application of the 2023 Mining Code to the Goulamina Lithium Project.

The new mining code reportedly allows the military-led government to increase its ownership in projects across the country, with state and local investors to take stakes as high as 35% in mining projects compared with 20% now.

After agreeing to give 5% of the Goulamina Lithium Project to Chinese lithium giant and joint venture partner Ganfeng Lithium last month in exchange for project funding, Leo Lithium's stake reduced to 45%. Should the government now take a 35% stake in the project, this could reduce Leo Lithium's interest in the project to just 27.5%.

What's the latest?

As you might have noticed at the top, Leo Lithium's shares appear to have been blocked from returning to trade by the ASX operator this morning. The notice explains:

The securities of Leo Lithium Limited ('LLL') will be suspended from quotation immediately under Listing Rule 17.3, following a failure to respond to ASX queries adequately. The securities will remain suspended until the Company has responded to ASX's queries adequately.

This certainly is not a great look for the company and its management team.

Leo Lithium shares are down 55% over the last three months.

The post Leo Lithium shares suspension continues. Here's the latest 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.

However, as many readers may have suspected based on previous halts, the lithium developer's shares will not be returning as planned.

This morning, Leo Lithium has requested that its shares be suspended from trade until the start of October.

What's going on with Leo Lithium shares?

After being suspended for approximately a month and a half from 18 July, Leo Lithium was back on the ASX boards a couple of weeks ago on 4 September.

However, that return was short-lived, with management requesting a trading halt last week for the following reason:

The Company seeks the trading halt pending an announcement in relation to correspondence from the government of Mali. The halt has been requested until the earlier of the release of the announcement or the commencement of trade on Tuesday 19 September.

That request didn't give much away, other than the issue once again being correspondence from the Malian junta government.

However, today's suspension request adds a bit more colour to proceedings. It states:

The Company requests a voluntary suspension pending an announcement in relation to correspondence from the government of Mali and the application of the 2023 Mining Code to the Goulamina Lithium Project.

What's the 2023 mining code?

Late last month, according to Reuters, Mali's interim President Assimi Goita signed into law a new mining code.

This new mining code allows the military-led government to increase its ownership in projects across the country. The report reveals that it will allow the state and local investors to take stakes as high as 35% in mining projects compared with 20% now.

The government expects the move could more than double the sector's contribution to gross domestic product to around 20%.

Last week, Leo Lithium agreed to give 5% of the project to Chinese lithium giant Ganfeng Lithium in exchange for project funding. This reduced its stake to 45% and boosted Ganfeng Lithium's stake to 55%.

Should the government now take a 35% stake in the project, this could reduce Leo Lithium's interest in the project to just 27.5%. In the space of a matter of weeks, the company would have gone from joint ownership to a minority interest.

Not great news for shareholders, unfortunately. But once again, it highlights why investing in mining shares operating outside tier-one jurisdictions carries significant risk. Just ask AVZ Minerals Ltd (ASX: AVZ) shareholders who have not seen its shares trade in over a year due to a dispute over its lithium project in the Democratic Republic of Congo.

The post Why are Leo Lithium shares suspended for the rest of the month? appeared first on The Motley Fool Australia.

That's because the lithium developer's shares have been slammed into yet another trading halt.

As a reminder, Leo Lithium only emerged from its last halt on 4 September after being frozen from trade since 18 July.

Why are Leo Lithium shares in another trading halt?

Unfortunately, it appears that Leo Lithium is continuing to have issues with the Malian Government.

Today's trading halt has been requested for the following reason:

The Company seeks the trading halt pending an announcement in relation to correspondence from the government of Mali.

The halt has been requested until the earlier of the release of the announcement or the commencement of trade on Tuesday 19 September. Though, as we saw many times in the last couple of months, the company can extend its halts. As a result, don't be surprised if Leo Lithium shares are not trading again on Tuesday.

What's happening?

It's unclear what the latest halt relates to exactly. But we have a few things to go on thanks to recent announcements. Earlier this month, it said:

The Company received correspondence from the Malian Ministry of Mines on 17 July 2023, covering a number of topics including direct shipping ore (DSO), status of the Government free carry stake and overall status of progress at the Goulamina Lithium Project (Goulamina or the Project). The Government has formed a commission to examine these items as well as issues surrounding the Morila Gold Mine in Mali (Commission), which is the subject of announcements by Firefinch Limited (Firefinch).

Stay tuned for more next week.

The post Why are Leo Lithium shares frozen again? appeared first on The Motley Fool Australia.

In morning trade, the lithium developer's shares are up 8% to 53.5 cents.

Why is the Leo Lithium share price jumping?

Investors have been buying the company's shares this morning after it announced the execution of an agreement with Ganfeng Lithium.

According to the release, Leo Lithium and Ganfeng Lithium have signed a binding agreement that implements a previously announced investment structure.

Under the agreement, Ganfeng Lithium will solely fund US$137.2 million of the capital costs for the Goulamina project in Mali via direct cash injection. This will see Ganfeng Lithium earn an additional 5% interest in the project, bringing its ownership to 55% and reducing Leo Lithium's to 45%.

In addition, Leo Lithium has commenced the drawdown of its US$40m Ganfeng debt facility, which was put in place in July 2022 to fund the Goulamina joint venture.

The sum of the above is that the Goulamina joint venture is now fully funded through to its first production. After which, Leo Lithium will be responsible for 45% of all remaining ongoing costs.

The release notes that the equity investment amount of US$137m is equivalent to A$0.81 per share, which is a big premium to the current Leo Lithium share price.

In addition, Leo Lithium remains operator and manager of the Goulamina joint venture and retains customary minority shareholder protections. However, Ganfeng has agreed to assist with those pesky Mali Government relations.

'Important milestone'

Leo Lithium Managing Director, Simon Hay, commented:

We are extremely pleased to have executed the Equity Investment Agreement with Ganfeng, which cements our solid relationship with China's largest lithium producer, and the direct project investment is set to facilitate regulatory approvals in China. Our Cooperation Agreement is meant to deliver a range of key strategic benefits, including a commitment to expand the capacity at Goulamina Stage 2, as well as a framework for further cooperation on a downstream conversion facility and other business opportunities.

Satisfaction of all the conditions precedent to the Ganfeng debt facility is an important milestone with drawdown of funds now underway. We look forward to continuing to build on our strong relationship with Ganfeng and deliver value with our Goulamina project.

The post Leo Lithium share price jumps 8% on Gangfeng Lithium deal appeared first on The Motley Fool Australia.

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

IGO Ltd (ASX: IGO)

The IGO share price is down over 6% to $13.29. This has been driven largely by the battery materials producer's shares going ex-dividend this morning for its final and special dividends. Eligible shareholders can look forward to receiving its fully franked final dividend of 44 cents per share and special dividend of 16 cents per share later this month on 28 September.

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price is down 4.5% to 49.2 cents. Investors have been selling this lithium developer's shares this month due to concerns over regulatory risks in Mali. This has seen the Leo Lithium share price drop 60% over the last two months.

Medibank Private Ltd (ASX: MPL)

The Medibank share price is down almost 3% to $3.49. This has also been driven by the private health insurer's shares going ex-dividend this morning. Eligible shareholders can look forward to receiving its fully franked 8.3 cents per share final dividend on 5 October.

Novonix Ltd (ASX: NVX)

The Novonix share price is down 5% to 71 cents. This means that the battery materials technology company's shares have now given back all of yesterday's gains and dropped to a new 52-week low. Novonix's shares are down a very disappointing 70% over the last 12 months. Investors don't appear to see the company becoming profitable any time soon.

The post Why IGO, Leo Lithium, Medibank, and Novonix shares are dropping today 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:

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price is down 9% to 51 cents. This morning, the embattled lithium developer was forced to respond to questions from the Australian stock exchange operator following a sharp decline. While Leo Lithium appears to have answered them fairly well, it hasn't been enough to stop some investors from hitting the sell button. The company's shares are now down 59% since this time two months ago.

Megaport Ltd (ASX: MP1)

The Megaport share price is down 9% to $10.69. This appears to have been triggered by some insider selling. After the market close on Friday, the network services company revealed that its director, Michael Klayko, had sold all his 25,000 Megaport shares for a touch over $300,000. Six months ago, those same shares would have been worth just under $120,000.

Sims Ltd (ASX: SGM)

The Sims share price is down 10% to $13.86. This follows the release of a disappointing trading update from the scrap metal company. Management warned that trading conditions have remained difficult since its last update. As a result, it only expects its first-quarter earnings before interest and tax to be breakeven.

Tietto Minerals Ltd (ASX: TIE)

The Tietto Minerals share price is down 8% to 34 cents. Rather awkwardly, this morning this gold miner retracted two recent announcements. Tietto Minerals explained: "[The announcements] contain an updated seven-year production schedule based upon an updated 2023 resource model that has not been released to market and therefore the Company does not have a reasonable basis to make the statements contained therein." Not a great look for management.

The post Why Leo Lithium, Megaport, Sims, and Tietto Minerals shares are sinking 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 dropping:

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is down 8% to 19.75 cents. Investors have been selling this lithium developer's shares after it was dumped out of the ASX 200 index at the quarterly rebalance. The Lake Resources share price is now down a whopping 82% over the last 12 months. Concerns over the viability of its Kachi project are largely to blame.

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price has crashed 50% to 56.5 cents. This morning, this lithium developer's shares returned from a lengthy suspension. Leo Lithium revealed a number of disappointing items such as the cancellation of its direct shipping ore plans, the possible loss of equity to the Mali government, and significant unforeseen tax charges.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is down 15% to $1.85. Investors have been hitting the sell button after the casino and resorts operator revealed that New Zealand's Department of Internal Affairs is looking to temporarily suspend its casino operator's licence for a period of ~10 days. A decision is not expected to be made for several months.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is down 4% to $1.38. This follows news that the payments company has commenced proceedings in the Supreme Court of New South Wales against Kounta Pty. It alleges that Kounta has breached its legal obligations to Tyro by offering a competing product to Tyro merchants. This is at a time that Kounta is Tyro's agent, as well as being an authorised representative under Tyro's Australian Financial Services Licence.

The post Why Lake Resources, Leo Lithium, Skycity, and Tyro shares are dropping today appeared first on The Motley Fool Australia.

In early trade, the lithium developer's shares sank a whopping 48% to 59 cents.

Why is the Leo Lithium share price being crushed?

Investors have been hitting the sell button in a panic today after the company finally revealed what its discussions with the Malian government entailed.

According to the release, the company received correspondence from the Malian Ministry of Mines on 17 July covering a number of topics. This includes direct shipping ore (DSO), the status of the Government free carry stake, and the overall status of progress at the Goulamina Lithium Project.

The Mali Government has formed a commission to examine these items, as well as issues surrounding the Morila Gold Mine in Mali, which is the subject of announcements by Leo Lithium's former parent, Firefinch Ltd (ASX: FFX).

DSO issue

The release notes that the Ministry of Mines has directed Lithium du Mali SA (A Malian incorporated company jointly owned by Leo Lithium and Ganfeng Lithium that holds the Goulamina Project) to suspend the DSO component of activities whilst discussions are pending.

Management stresses that the directive does not delay any other aspect of the project. Mining continues as per the pre-existing plan and mined ore is being stockpiled ahead of first spodumene concentrate production in the second quarter of 2024.

Government stake

Leo Lithium also revealed that it continues to progress the standard Malian requirement for a 10% project free carry for the Mali Government in the Goulamina Project.

However, the government has the right to acquire up to a 20% interest in the company that holds the project.

Initial documents have been provided to the Government to effect the 10% project free carry stake. As part of this, the Government can appoint two directors to the project's board, with Leo Lithium and Ganfeng appointing up to three representatives each.

Taxes

Also weighing on the Leo Lithium share price is news that the government has not made the company exempt from certain taxes, as expected.

The company is attempting to resolve this matter. However, so far, the project has paid approximately US$4 million in import duties and taxes since mid-July. And if the matter is not resolved, it expects to pay a further US$16.1 million this quarter.

After which, total exposure in the capital phase of the project for unplanned import duties and taxes is US$45 million to US$50 million.

New mining code

The release also highlights that a new Mining Code Act was announced on 29 August by the President of the Transition and President of the Republic of Mali.

The company has commenced a review of the code and will advise of any impact on the project in due course.

Management commentary

Leo Lithium's Managing Director, Simon Hay, commented:

Goulamina remains a technically and financially robust world-class lithium project and continues to represent the next lithium project of significant scale to enter production globally, without the addition of early DSO product.

While Leo Lithium had a preference to bring Goulamina DSO product to market in advance of our expected spodumene concentrate production in the first half of 2024, it is not necessary for a successful project, and we did not consider a DSO opportunity in our feasibility studies.

We will continue to engage with the Ministry of Mines and advance our world-class spodumene project. We anticipate further positive developments with the latest Mineral Resource setting the foundation for an updated Ore Reserve estimate later this month.

All in all, quite a messy situation for Leo Lithium and another reason why investing in mining shares outside tier-1 jurisdictions carries a lot of risk.

The post Why is the Leo Lithium share price crashing 48% today? appeared first on The Motley Fool Australia.

The lithium developer's shares have been suspended from trade since 18 July.

What's going on with Leo Lithium shares?

Leo Lithium shares were suspended last month at the company's request while it has discussions with the Malian government.

While the company hasn't revealed what is going on, there are a couple of potential reasons for the suspension.

The first could be the company's plans to start exporting direct shipped ore (DSO).

A number of African countries have recently banned DSO exports. They want miners to process ore in their country to support jobs, rather than have them dig it up and throw it on a boat to be processed elsewhere.

In addition, there were reports last month that the Malian government wants to change mining laws. The Reuters report claims that the government is aiming to take a direct 10% stake in mining projects once a permit has been issued.

The laws apparently would also give the state the option to buy an additional 20% within the first two years of commercial production.

What's the latest?

This morning, the company has extended its suspension until Monday of next week. It said:

The Company requests an extension to its voluntary suspension pending an announcement in relation to ongoing incomplete discussions with the government of Mali on correspondence that it has received. The Company anticipates that the voluntary suspension will end upon the Company releasing the above announcement, which is anticipated to occur on or before Monday, 28 August 2023.

Whether or not we will see Leo Lithium shares resume trade on Monday, is hard to say. After all, its shares were expected to return to action today after the release of the promised announcement, but that didn't happen.

The post Leo Lithium shares remain suspended. Here's the latest 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.

Leo Lithium shares have not traded since 18 July when the company requested a trading halt after receiving correspondence from the military-led Mali Government.

The correspondence relates to Leo Lithium's plans to export direct shipped ore (DSO) from the Goulamina Lithium Project.

Two days later, Leo Lithium asked for a voluntary suspension until 27 July, revealing its discussions with the government were incomplete and it needed more time.

Today's request for a second extension contains similar wording.

Leo Lithium says it will make an announcement in relation to the matter on or before 21 August.

Nervous wait for Leo Lithium shares investors

As my Fool colleague James has previously reported, a number of African countries have banned DSO exports recently. They've done this because they want the ore processed locally to create jobs.

There have been media reports about potential changes to mining laws in the West African country. 

Reuters recently reported:

[T]hree sources close to the talks, shows the government aims to take a direct 10% stake in mining projects once a permit has been issued, entitling it to 10% of dividend payments.

It would give the state the option to buy an additional 20% within the first two years of commercial production, possibly through a newly created state mining entity.

The post Why are Leo Lithium shares still not trading? appeared first on The Motley Fool Australia.

This morning, the lithium developer has asked for its suspension to be extended.

Its request reveals that its discussions with the military-led Malian government are incomplete and that it needs more time. The company said:

The Company requests an extension to its voluntary suspension pending an announcement in relation to ongoing incomplete discussions with the government of Mali on correspondence that it has received.

Management has requested that its shares remain suspended until 7 August.

What's going on with the Leo Lithium share price?

We don't really know what's going on, which makes this a nervous time for anyone holding Leo Lithium shares.

The discussions with the Malian government appear to have been triggered by Leo Lithium's plans to start exporting direct shipped ore (DSO).

A number of African countries have banned DSO exports recently. Instead of just letting miners dig up ore and throw it on a boat to be processed elsewhere, they want them to process the ore in the country. This is understandable given that it would likely support job creation.

It is also worth noting that there were media reports in the days before Leo Lithium was contacted by the Malian government about potential changes to mining laws in the West African country. Reuters reports:

T]hree sources close to the talks, shows the government aims to take a direct 10% stake in mining projects once a permit has been issued, entitling it to 10% of dividend payments. It would give the state the option to buy an additional 20% within the first two years of commercial production, possibly through a newly created state mining entity.

It is possible that the country's government wants a stake in the company's Goulamina Lithium Project.

However, for now, this is purely speculation and investors will have to wait and see what happens when Leo Lithium finally releases its announcement.

The post Leo Lithium share price remains frozen. Here's why appeared first on The Motley Fool Australia.

But get the popcorn ready, because this lithium stock is scheduled to return to trade on Thursday.

Will Leo Lithium shares return to trade tomorrow?

As things stand, Leo Lithium shares are due to start trading again on 27 July.

However, as we have seen with fellow Africa-based lithium developer, AVZ Minerals Ltd (ASX: AVZ), suspensions can be extended indefinitely.

AVZ Minerals shares have been suspended from trade for over a year due to a dispute over the ownership of its Manono Lithium Project.

What's going on?

At present, it remains unclear what is causing the hold-up with Leo Lithium's shares. However, a lengthy suspension like this rarely brings good news.

What we do know, is the reason for the request. It stated:

The Company seeks the trading halt pending an announcement in relation to correspondence from the government of Mali relating to plans to produce Direct Shipped Ore.

Another thing we know is that around the same time, there has been speculation that the military-led Malian government is considering a change to regulations that could see it take stakes in mines. Reuters recently reported:

[T]hree sources close to the talks, shows the government aims to take a direct 10% stake in mining projects once a permit has been issued, entitling it to 10% of dividend payments. It would give the state the option to buy an additional 20% within the first two years of commercial production, possibly through a newly created state mining entity.

The company's recent announcement of plans to start producing direct shipped ore would likely be classed as the commencement of commercial production. Could this mean the Malian government is looking to take a 20% stake in Leo Lithium? Or perhaps even as much as 30%? This would of course have significant consequences for the company's valuation.

What else?

Alternatively, the government may simply be looking to get a slice of any revenue raised from direct shipped ore. It's possible the two parties are negotiating a fair royalty that makes the process worthwhile for both parties.

A third possibility is that the Mali government could follow the lead of other African nations by banning direct shipped ore exports. This would be a blow to Leo Lithium, which likely saw the direct shipped ore as a way to bridge its funding gap.

All should be answered tomorrow, so stay tuned for that.

The post Leo Lithium shares resume trading tomorrow. Here's what to watch appeared first on The Motley Fool Australia.

Earlier this week, the company requested a trading halt until the earlier of the release of an announcement or the commencement of trade this morning.

Unfortunately for shareholders, it has become apparent that two days was not enough time for the lithium developer to finalise its announcement.

As a result, the company has requested that its shares be suspended for a week until 27 July.

What's going on with the Leo Lithium share price?

As we covered here on Tuesday, Leo Lithium requested a halt after receiving correspondence from the government of Mali. This was in relation to its direct shipped ore (DSO) plans at the Goulamina Lithium Project in the West African country. It advised:

The Company seeks the trading halt pending an announcement in relation to correspondence from the government of Mali relating to plans to produce Direct Shipped Ore.

Today's suspension request has similar wording. It states:

The Company requests a voluntary suspension pending an announcement in relation to correspondence from the government of Mali. The Company anticipates that the voluntary suspension will end upon the Company releasing the above announcement, which is anticipated to occur on or before Thursday, 27 July 2023.

What's happening?

What is happening behind the scenes is impossible to say. But it is worth highlighting that Reuters recently reported that the Malian government was looking at bringing in a new mining law in the near future. It said:

The draft, dated June 17 and verified by three sources close to the talks, shows the government aims to take a direct 10% stake in mining projects once a permit has been issued, entitling it to 10% of dividend payments. It would give the state the option to buy an additional 20% within the first two years of commercial production, possibly through a newly created state mining entity.

Nothing has been confirmed as of yet. But, as they say, where there's smoke, there's fire.

And while giving up a stake to the government would be disappointing and have implications for its valuation, I'm sure shareholders would rather that than deal with the same debacle impacting fellow African lithium developer AVZ Minerals Ltd (ASX: AVZ). Its shares have been suspended for over a year.

Stay tuned for Leo Lithium's announcement next week.

The post Suspended! What's going on with the Leo Lithium share price? appeared first on The Motley Fool Australia.

That's because the lithium developer requested a trading halt prior to the market open this morning.

Why is the Leo Lithium share price out of action?

This morning, Leo Lithium requested that its shares be placed in a trading halt until either the release of an announcement or the commencement of trade on Thursday.

Unfortunately, at this stage, it is unclear whether the announcement in question will be good news or bad news.

However, the wording of the request is somewhat ominous, so shareholders can be forgiven for feeling a little nervous right now. Leo Lithium's request states:

The Company seeks the trading halt pending an announcement in relation to correspondence from the government of Mali relating to plans to produce Direct Shipped Ore.

What is direct shipped ore?

Last month, Leo Lithium revealed that it had produced its first direct shipped ore (DSO) at the Goulamina Lithium Project in Mali.

DSO is essentially a precursor to the production of lithium. While it may not be as lucrative as lithium spodumene, there is demand for the ore and it is expected to support Leo Lithium's working capital over the next 12 months. It will also allow the company to optimise its logistics solution and de-risk project development. Management commented last month:

First revenue from DSO is on track to be received during Q4 2023, and Leo Lithium anticipates the export of DSO ore for 6 to 9 months in advance of spodumene production. On an annualised basis, the Company is targeting 185,000 tonnes of DSO exports until spodumene production commences.

What's going on?

It's possible that today's halt could be an indication that the Mali government is wanting a slice of any of the proceeds from the DSO.

Alternatively, it is worth highlighting recent reports that a new mining law could come into force in Mali in the very near future. Reuters states:

The draft, dated June 17 and verified by three sources close to the talks, shows the government aims to take a direct 10% stake in mining projects once a permit has been issued, entitling it to 10% of dividend payments. It would give the state the option to buy an additional 20% within the first two years of commercial production, possibly through a newly created state mining entity.

In a couple of days, all will be clear. But whatever happens, this is a clear demonstration of the risks that investors are exposed to when investing in miners operating outside Australia.

The post Leo Lithium shares halted ahead of major government announcement appeared first on The Motley Fool Australia.

And while the index is trading way off its highs, that hasn't stopped some ASX All Ords stocks from hitting multi-year highs of their own today.

Here are five ASX All Ords stocks achieving this milestone:

Alpha HPA Ltd (ASX: A4N)

The Alpha HPA share price climbed to a multi-year high of $1.21 today. On Monday, this lithium-ion battery materials company released an update that revealed that production of high-purity Al-nitrate has continued with cumulative production having now reached 150 tonnes at its target rate.

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price hit a multi-year high of $1.65 today. This ASX All Ords gold developer's shares have been on fire since the release of an announcement last week which revealed cash flow generation plans.

Cettire Ltd (ASX: CTT)

The Cettire share price hit a new multi-year high of $3.66 earlier today before dropping into the red. Investors have been buying this online luxury retailer's shares after it delivered very strong growth in FY 2023 despite the cost of living crisis.

Latin Resources Ltd (ASX: LRS)

The Latin Resources share price reached a multi-year high of 38 cents today. Late last month, this lithium developer revealed that multiple spodumene pegmatites were intersected in reconnaissance drilling along strike south-west of the Colina Deposit in Brazil.

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price hit a new high of $1.29 today. The lithium developer recently announced the production of its first direct shipped ore (DSO) from the Goulamina Lithium Project in Mali. The first revenue from DSO is on track to be received during the fourth quarter of 2023. The ASX All Ords stock anticipates the export of DSO ore for 6 to 9 months in advance of spodumene production.

The post 5 ASX All Ords stocks smashing new multi-year highs on Tuesday appeared first on The Motley Fool Australia.

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

GQG Partners Inc (ASX: GQG)

The GQG share price is up 3% to $1.51. Investors have been buying this fund manager's shares on Monday following the release of its latest funds under management (FUM) update. GQG reported FUM of $104.1 billion at the end of June, which is up 5.7% since the end of May.

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price is up 3% to $2.04. This morning, this energy producer released an update on its Neon resource. Management revealed that successful control well drilling has reduced subsurface uncertainty and helped narrow its contingent resource estimates. This has seen 1C resources increase by 26% to 37.7MMbbl.

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price is up 9% to $1.23. This is despite there being no news out of the lithium developer. However, its shares have been on fire recently thanks to news that it has produced its first direct shipped ore (DSO) from the Goulamina Lithium Project in Mali. On an annualised basis, the company is targeting 185,000 tonnes of DSO exports until spodumene production commences.

Meteoric Resources NL (ASX: MEI)

The Meteoric Resources share price is up 9% to 26.7 cents. This morning, this mineral exploration company released an update on the Caldeira REE Project in Brazil. That update revealed a binding option agreement to acquire significant and strategic ionic clay rare earth element (REE) rights on licences that merge crucial areas identified in the recent maiden resource estimate for the project.

The post Why GQG, Karoon Energy, Leo Lithium, and Meteoric Resources shares are rising appeared first on The Motley Fool Australia.