At the time of writing, the lithium explorer's shares are up 30% to 54 cents.

Why are Lithium Power International shares rocketing?

As some readers may be aware, Lithium Power International has been in takeover discussions with Chilean copper giant Codelco.

Last week, the company dismissed reports that it was close to agreeing a deal at 50 cents per share. It advised that "the price stated in the article in relation to a potential transaction with Codelco of about 50 Australian cents per share is incorrect." This had many fearing that a deal would be made for less than 50 cents per share.

Well, the good news is that Codelco is willing to pay far more than what was reported.

According to the release, the two parties have entered into a binding scheme implementation deed that will see Codelco acquire Lithium Power International for 57 cents per share.

This represents a 119% premium to the undisturbed closing share price of 26 cents for Lithium Power International's shares on 26 September.

It also values the company at $385 million on a fully diluted basis.

Unanimously recommended

The company's board unanimously recommends that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert's report.

Its largest shareholder, Minera Salar Blanco, intends to vote its 28.25% shareholding in favour of the scheme, subject to the same qualifications. As do all members of the company's board.

Commenting on the agreement, the company's CEO and Managing Director, Cristobal Garcia Huidobro, said:

We believe this transaction is a great outcome for LPI shareholders and for other stakeholders including employees, suppliers and the people of Chile, all of whom will benefit from the Maricunga Lithium Project being developed by a large, well-financed and experienced mine developer and producer as Codelco.

The Board believes this transaction reflects the hard work and achievements of the LPI team and the significant progress made in advancing the Maricunga Lithium Project to its current predevelopment stage

The post Lithium Power International shares rocket 30% on takeover 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:

Harvey Norman Holdings Limited (ASX: HVN)

The Harvey Norman share price is down 4% to $3.90. This has been driven by the retailer's shares going ex-dividend this morning for its fully franked final dividend of 12 cents per share. Eligible shareholders can now look forward to receiving this payout next month on 13 November.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price is down 3% to $1.30. This morning, this administration services company released an update on the proposed sale of its Link Fund Solutions business. Investors may be disappointed with how long the process is taking. Management now expects the scheme meeting to take place in two months.

Lithium Power International Ltd (ASX: LPI)

The Lithium Power International share price is down 5% to 39.5 cents. After the market close on Thursday, this lithium explorer reconfirmed that it is in takeover talks with Chilean mining giant Codelco. However, it dismissed speculation that a deal has been agreed valuing the company at 50 cents per share. It called this figure "incorrect."

ResMed Inc (ASX: RMD)

The ResMed share price is down over 2% to $21.65. Investors have been selling this sleep treatment company's shares following positive trial results for weight loss drug Ozempic in the treatment of chronic kidney disease. While kidney disease has no direct link to ResMed, investors appear concerned that the increased use cases of Ozempic could lead to government and health insurance companies offering better reimbursements or coverage. The high costs of Ozempic were expected to prevent true mass adoption.

The post Why Harvey Norman, Link, Lithium Power International, and ResMed shares are dropping today 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 pushing higher:

Breville Group Ltd (ASX: BRG)

The Breville share price is up 4% to $23.17. This appears to have been driven by a broker note out of Goldman Sachs. This morning, the broker upgraded the appliance manufacturer's shares to a buy rating with a $24.50 price target. It is "structurally positive on BRG's unique positioning in global coffee premiumisation trend."

Lithium Power International Ltd (ASX: LPI)

The Lithium Power International share price was up 19% to 41.5 cents before being paused from trade. This follows reports that the lithium explorer is close to agreeing to a takeover deal. Corporación Nacional del Cobre de Chile (also known as Codelco) is reportedly close to agreeing to a deal to acquire Lithium Power International for $315 million or 50 cents per share.

Redbubble Ltd (ASX: RBL)

The Redbubble share price is up 24% to 57 cents. This follows the release of an update from the e-commerce company. According to the release, Redbubble returned to positive underlying cash flow during the three months ended 30 September. It reported underlying cash flow of $0.7 million, which is up from a cash outflow of $17.6 million in the prior corresponding period.

Webjet Limited (ASX: WEB)

The Webjet share price is up 2% to $6.63. This also appears to have been driven by a broker note out of Goldman Sachs. The broker has upgraded the online travel agent's shares to a buy rating with an $8.30 price target. Goldman believes "the recent sell off [is] overdone."

The post Why Breville, Lithium Power International, Redbubble, and Webjet are pushing higher appeared first on The Motley Fool Australia.

The ASX All Ords lithium stock was up 19% to 42 cents before being paused.

Why is this ASX All Ords lithium stock on fire?

Investors were scrambling to buy the lithium explorer's shares this morning amid reports that a takeover deal is imminent.

According to Bloomberg, Corporación Nacional del Cobre de Chile (Codelco) is close to agreeing to a deal to acquire Lithium Power International for $315 million or 50 cents per share.

Codelco is a Chilean state-owned miner and the world's biggest copper producer.

Last month, the company confirmed that it was in discussions with Codelco regarding a potential transaction and had granted it due diligence access. However, it warned that these discussions were incomplete and no agreement on terms has been reached.

That all appears to have changed, with Bloomberg reporting that sources claim a deal could be announced as soon as next week. However, the same sources have warned that "negotiations could still be delayed or even fall apart."

Is it a good deal?

While the speculated offer is a sizeable 100% premium to where its shares were trading this time last month, longer-term shareholders may feel a little short-changed.

For example, for the majority of the second half of last year, the ASX All Ords lithium stock traded beyond the 50 cents mark.

And before that, in the first half of 2022, it was trading as high as 91 cents at one point. All in all, it could be argued that the potential offer is opportunistic.

The post Up 19%! Is this ASX All Ords lithium stock about to get a takeover offer from a mining giant? appeared first on The Motley Fool Australia.

For example, the two lithium stocks listed below are up at least 25% during today's session. But why are they on fire today? Let's find out.

Lithium Power International Ltd (ASX: LPI)

The Lithium Power share price is up 27% to 33 cents. This follows the company's response to speculation that it is in discussions with Corporación Nacional del Cobre de Chile (Codelco) about a potential transaction.

Lithium Power confirmed that it is in talks with Codelco but these discussions are incomplete and no agreement on terms has been reached. Nevertheless, Codelco has been granted due diligence and is continuing to undertake its investigations. Management also warned that there is no certainty that the discussions with Codelco will lead to a transaction.

Metalstech Ltd (ASX: MTC)

The Metaltech share price is up 55% to 26.5 cents. Investors have been buying this Canada-based ASX lithium stock after it announced a key appointment. Metalstech advised that it has appointed Robert Sills as its non-executive technical director to the board, effective immediately.

The release notes that Sills has an extensive global network and a distinguished 28-year career in critical materials, actively engaging with global downstream processors seeking to bolster supply chain resilience and enhance ESG credentials within their respective lithium-ion battery supply chains.

He has previously held senior operational roles at Essential Metals Ltd (ASX: ESS), Core Lithium Ltd (ASX: CXO) and Rio Tinto Ltd (ASX: RIO). At Core Lithium, he was responsible for the development and establishment of cornerstone offtake partners. Sills also drove the establishment and execution of Core Lithium's Direct Shipping Ore (DSO) tender.

The post 2 ASX lithium stocks rocketing 25% to 55% on Thursday appeared first on The Motley Fool Australia.

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

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is down 5% to $6.05. Investors have been selling this regional bank's shares after a few brokers responded negatively to its half-year results. One of those was Morgan Stanley, which has downgraded the bank's shares to an underweight rating with a $6.00 price target.

Lithium Power International Ltd (ASX: LPI)

The Lithium Power share price is down 16% to 33 cents. This appears to have been driven by news that Chile plans to nationalise its lithium industry to create a state-owned lithium company. This could potentially mean that control of Lithium Power's Maricunga Lithium Brine Project in Chile is transferred to the government.

Piedmont Lithium Inc (ASX: PLL)

The Piedmont Lithium share price is down almost 5% to 80 cents. This is despite the company releasing an update on the definitive feasibility study (DFS) for the Tennessee Lithium Project. The DFS affirmed the potential for Piedmont Lithium to develop an American-based lithium hydroxide business.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down 3% to $116.97. This may be due to a lukewarm response to the miner's quarterly update from brokers. For example, analysts at Morgans responded by retaining their hold rating and trimming their price target to $116.00. Over at UBS, its analysts retained their sell rating and $95.00 price target. Whereas Macquarie held firm with its neutral rating with a slightly reduced price target of $122.00.

The post Why Bank of Queensland, Lithium Power, Piedmont Lithium, and Rio Tinto are falling appeared first on The Motley Fool Australia.

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

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

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

Which ASX lithium shares are joining the All Ordinaries index?

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

Anson Resources Ltd (ASX: ASN)

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

Atlantic Lithium Ltd (ASX: A11)

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

Latin Resources Ltd (ASX: LRS)

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

Lithium Power International Ltd (ASX: LPI)

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

Red Dirt Metals Ltd (ASX: RDT)

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

The post 5 ASX lithium shares being added to the All Ordinaries in the latest rebalance 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:

Life360 Inc (ASX: 360)

The Life360 share price is up almost 11% to $5.41. Investors have been buying the location technology company's shares following the release of a business update. As well as achieving guidance on key metrics in FY 2022, the company announced a restructure that is expected to accelerate its path to profitability.

Lithium Power International Ltd (ASX: LPI)

The Lithium Power share price is up over 6% to 50 cents. This morning the lithium explorer revealed that it has commenced its inaugural drilling program at its East Kirup lithium prospect located in the Greenbushes region of Western Australia. In addition, the company advised that its Western Lithium business is to be demerged during the first half of 2023, subject to market conditions and shareholder approval.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is up 4% to $26.42. This appears to have been driven by a broker note out of Canaccord Genuity. According to the note, its analysts have lifted their price target on this fashion jewellery retailer's shares by a massive 22% to $27.75.

Santos Ltd (ASX: STO)

The Santos share price is up over 3% to $7.36. Investors have been buying Santos and other energy shares on Friday following another rise in oil prices overnight. This was driven by optimism that global demand for oil could strengthen. At the time of writing, the S&P/ASX 200 Energy index is up approximately 2%.

The post Why Life360, Lithium Power, Lovisa, and Santos shares are storming higher today appeared first on The Motley Fool Australia.

Before being placed on the back-burner, the Lithium Power share price has been enjoying a recent market resurgence of ASX lithium shares, rebounding to a three-month high of 69.5 cents apiece.

The lithium explorer's returns are plotted below for the 12 months to date.

Lithium Power trading halt

In its request to the ASX, the company noted it was set to raise capital by issuing new shares and was meeting compliance regulations in writing.

On that basis, the company is likely to post a price-sensitive announcement regarding the capital raise, either as plans or after the fact.

"[Lithium Power] requests a trading halt in respect of its securities with immediate effect," it said in correspondence to the ASX posted today.

The ASX responded swiftly and granted the company's request, noting that its securities will remain in a halt until next Monday unless the company makes an announcement sooner.

The capital raise was set to be for $20 million to fund work at its Maricunga lithium brine project in Chile, The Australian Financial Review reported. The offer was priced at 60 cents a share.

Canaccord Genuity is the sole book manager and reportedly called for bids from those participating before 4pm today.

Meanwhile, the Lithium Power share price is up more than 131% over the past 12 months and up 51% this year to date.

The post Why is the Lithium Power share price on ice today? appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) is also up a respectable 0.7% on the back of positive investor reaction to the US Federal Reserve's 0.75 interest rate hike.

But three ASX lithium stocks leading the charge today are up 13%, 19% and 17% respectively.

ASX lithium shares charging higher

First up we have Neometals Ltd (ASX: NMT).

The Neometals share price is up 13% today. The miner closed yesterday trading for $1.04 per share and is currently trading for $1.117 per share. That gives it a current market cap of some $625 million.

There's been no fresh market-sensitive news out from the company since it announced a shakeup in its battery recycling project schedule on 14 July. But investors are continuing to favour the ASX lithium share, which is now up 24% over the past month.

Also charging higher today is Africa-focused battery minerals explorer Prospect Resources Ltd (ASX: PSC).

Prospect Resources finished the day yesterday trading for 8.3 cents and is currently trading for 9.9 cents per share, an intraday gain of 19.3%.

If you've been following along with Prospect Resources, you'll have noticed that the ASX lithium share appeared to crash yesterday, tumbling from $1.01 to close at 8 cents, down 92.1% for the day.

But as The Motley Fool reported yesterday, this crash wasn't actually bad news for shareholders. It came after the company distributed most of the proceeds from the sale of its holdings in the Arcadia Project for the tidy sum of US $342.9 million "by way of a 96 cents per share distribution".

Yesterday Prospect Resources traded ex-capital return, seeing the share price drop 93 cents as new investors will no longer be eligible for the 96-cent share distribution.

Rounding off today's leaders list

Rounding off the ASX lithium shares going gangbusters today we have Lithium Power International Ltd (ASX: LPI).

Lithium Power shares closed yesterday at 46 cents and are currently trading for 54 cents, up 17.4% in intraday trading. That gives the explorer a market cap of $185 million.

The last market-sensitive news from the company came out more than a month ago.

But as with Neometals, Lithium Power has had a tremendous month, with shares up 31% since 28 June.

That momentum looks to be carrying on today as investors broadly reward ASX lithium shares amid a strong demand outlook for the critical battery metal.

The post 3 ASX lithium shares going gangbusters on Thursday appeared first on The Motley Fool Australia.

The Lithium Power share price has since settled at 59.5 cents, up 2.59% at the time of writing.

The price movement comes as the miner announced plans to demerge from its Western Australian lithium assets.

Let's take a closer look…

Lithium demerger

Lithium Power has announced it will spin-out both its Greenbushes and Pilgangoora hard rock lithium assets in WA.

Instead, these interests will be held by DemergeCo, a wholly-owned subsidiary of Lithium Power, which will now seek to be listed on the ASX.

Lithium Power has announced its shareholders will receive DemergeCo shares on a pro-rata basis via a capital reduction and in-specie distribution, subject to both shareholder and regulatory approvals.

The company now intends to focus on its Maricunga Lithium Brine Project in northern Chile.

Just last week, Lithium Power reported positive advancements and surveying of its WA projects.

The sites are located immediately along strike from the major Talison lithium mine and adjacent to the assets owned by Pilbara Minerals Ltd (ASX: PLS).

What does the company say?

Lithium Power reasons the split will unlock the "strategic value" of the assets and leave the company to focus on developing its flagship site within Chile's so-called 'Lithium Triangle'.

The board believes the decision will compensate existing shareholders, in that it will give "the opportunity to create long term value via a new ASX-listed company" and will allow a "direct level of participation" in these assets.

Lithium Power CEO Cristobal Garcia-Huidobro said:

LPI has a number of highly prospective assets located in WA that are at an exciting stage of exploration.

These assets deserve their own time, attention and resources, and LPI's Board believes that it is the best outcome for LPI shareholders to create a dedicated, WA-focused company that has the technical, human and financial resources to advance these exciting assets.

Lithium Power share price snapshot

The Lithium Power share price has skyrocketed in the last 12 months, up 143%.

The company hit its previous 52-week-high of 60 cents a share on Monday, before breaking through the 60 cents barrier in reaching its new high this morning.

The company has a market capitalisation of $208 million.

The post What's driving the Lithium Power (ASX:LPI) share price up today? appeared first on The Motley Fool Australia.

Lithium Power shares have been on the upward trajectory for over a week now, having come off a low of 28 cents on 8 August.

Whilst there's no market-sensitive information out of the lithium pure-player's corner today, it's worthwhile investigating what's fuelling this latest run on its share price.

Lithium pricing fetches record highs once again

Lithium is currently fetching US$28,359.68/tonne after breaking out in early August from previous lows of US$14,414.

Since that time, it has zoomed ahead more than 96%, breaking away once again on 8 October and gaining a further 3% on today's level.

In fact, the new-age battery element is commanding its highest prices on record in October. This reflects supply constraints and the demand for stable battery materials, driving the spot price and premium on lithium futures contracts towards the ceiling.

Further, the outlook for the lithium-ion battery market – the key catalyst in propelling lithium prices – is overwhelmingly bullish. This is likely driving Lithium Power's share price as well.

For instance, the lithium-ion battery market is projected to grow at a compound annual growth rate (CAGR) of 14.6% over the coming five years, reaching a total market size of US$96 billion by 2026.

That's more than double its current estimated size of around US$41 billion in 2021. Not surprisingly, this bodes well for the Lithium Power share price.

Why is this relevant to the company and investors? Perhaps most relevant is the fact that Lithium Power International is a lithium pure-play, meaning it derives the entirety of its revenue from lithium sales.

As it is an ASX resources share that produces a single commodity, it is considered a price-taker of whatever the market is offering on its product.

As such, the company's share price can and does fluctuate almost in unison with the spot price of lithium, as has been the case in recent weeks.

Not to mention Lithium Power provided an update last month that confirmed a 90% increase in the mineral resource estimate at its Maricunga lithium-brine project in Chile.

The pricing mechanism of the share market involves a culmination of past earnings history and future earnings expectations.

If lithium pricing looks bright on the horizon then the market, being relatively efficient, will be quick to price this sentiment into the company's shares.

In light of this relationship, and especially given the strengths in lithium prices of late, the picture starts to form as to what's driving the company's share price lately.

Investors appear to be speculating on the upward movement of lithium pricing or hedging against significant price swings in the silver-white metal. Purchasing lithium shares is a good way to get in on the action without having to buy risky derivatives contracts that involve the use of leverage and significant capital.

Lithium Power International share price snapshot

The Lithium Power share price has been an outsized winner this year to date, posting a return of 111% since January 1.

This extends its gains over the last 12 months to 138.5%, which is a galaxy away from the S&P/ASX 200 Index (ASX XJO)'s gain of around 19% in that time.

The post Why has the Lithium Power (ASX:LPI) share price rocketed 50% in a week? appeared first on The Motley Fool Australia.

Exploration activity recommences

The Lithium Power share price has risen today after the company announced it is recommencing exploration adjacent to the Greenbushes lithium mine.

The Greenbushes project is located in the south west of Western Australia. It is wholly owned by the lithium explorer and is located adjacent to the world's highest grade spodumene lithium mine.

Covid-19 placed its exploration efforts on hold for most of 2020. However, with the recent improvements in lithium prices, which are forecast to increase during 2021, it has been deemed worthwhile to resume activity.

Moreover, Greenbushes consists of two tenements covering more than 398km, which both have approved work and environmental plans. The mine is at the centre of a 20km zone with lithium deposits found nearby, outlined in published studies. Other elements that lie in close proximity to the mine include arsenic, tin, boron, and beryllium. Notably, the presence of arsenic in the soil is positive as this is a significant indicator element.

What did management say?

In this morning's announcement, CEO Cristobal Garcia-Huidobro welcomed the news, commenting:

With the increased market interest in lithium, we feel it is opportune to re-start our WA exploration activities. The recent move by IGO Limited to acquire a portion of the Greenbushes mine adjacent to our project reiterates the significant value of high-grade lithium pegmatites and the Greenbushes project in particular, in a secure global jurisdiction. We look forward to updating shareholders on our exploration activities as they advance to drilling.

Foolish takeaway

The Lithium Power share price has been unchanged since last year, recovering well after its March lows. Nonetheless, shares in the company have been slimly outperformed by the All Ordinaries Index (ASX: XAO), which rose 1% in the same period.

The post Here's why the Lithium Power (ASX:LPI) share price is up 7% today appeared first on The Motley Fool Australia.