Lithium stocks have propelled north over the last 12 months as the battery metal soars to record heights on commodities markets.
In fact, lithium carbonate prices have only just taken their first backward step in more than a year. The commodity is now fetching 482,500 Chinese Yuan per tonne, down from 497,500 last month.
Despite the slight pullback, its climb has managed to blitz the benchmark S&P/ASX 200 Index (ASX: XJO) this year to date.
A new debutant?
Lithium carbonate remains up by 436% over the 12 months to date, outpacing nearly all other commodity baskets.
So with whispers of a potential lithium newcomer to the ASX, it’s no wonder that investor circles are murmuring with excitement.
“Tesla supplier Yahua International will take a cornerstone investment in Oceana Lithium, which is looking to raise up to $6 million ahead of a listing next month,” The Australian reports today.
“A pair of former Galaxy Resources executives are on board at Perth-based Oceana, which will be looking to advance lithium projects in Brazil and the Northern Territory.”
According to reports, Oceana could release up to 30 million ordinary shares on a valuation of 20 cents apiece, hoping to raise $5-6 million in the process.
Based on these and other valuation inputs, this would value Oceana at $12.7 million, The Australian notes.
In its prospectus, Oceana said it will allocate more than 50% of the raised funds to its Brazilian project with less than $1 million budgeted for its Napperby project in the NT.
Here’s what the company had to say (as quoted by The Australian):
Both Solonopole and Napperby are considered highly prospective for lithium and associated minerals, given their locations within known pegmatite and lithium provinces in Ceara state, Brazil and the Northern Territory.
Both projects have undergone previous mineral exploration including geological mapping and geochemical sampling and, in the case of Solonopole, small scale artisanal mining by previous owners.
The public offering is reportedly set to finalise on April 22, after which a potential listing is scheduled for May 27.
With global commodity markets still reeling amid the volatility of 2022’s geopolitical storms, it remains to be seen if the listing has come at the right time or not. Ultimately, the market will decide.
The post This lithium miner is set to list on the ASX next month following its IPO, and counts a Tesla supplier among its key investors. appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- Here are the 3 most heavily traded ASX 200 shares on Wednesday
- Why is the A2 Milk share price outperforming today?
- ASX 200 midday update: AVZ and EML shares jump
- Top broker warns this ASX 200 share may be next to issue a profit warning
- 5 things to watch on the ASX 200 on Wednesday
Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/8FUdXAe
Leave a Reply