The S&P/ASX 200 Index (ASX: XJO) is on form on Thursday and charging higher. At the time of writing, the benchmark index is up 0.8% to 7,366.1 points.
However, as positive as this is, this gain pales in comparison to one area of the market – the lithium industry.
Lithium stocks race higher
In afternoon trade, a number of ASX lithium stocks are on course to record very strong gains. Here’s a summary of how they are performing:
- The Allkem Ltd (ASX: AKE) share price is up 5%.
- The Core Lithium Ltd (ASX: CXO) share price is up 7%.
- The Lake Resources N.L. (ASX: LKE) share price is up 6%.
- The LionTown Resources Limited (ASX: LTR) share price is up 7%.
- The Pilbara Minerals Ltd (ASX: PLS) share price is up 6.5%.
- The Sayona Mining Ltd (ASX: SYA) share price is up 11%.
- The Vulcan Energy Resources Ltd (ASX: VUL) share price is up 5%.
Why are they rising?
Today’s gain appears to have been driven by the release of an impressive result from lithium giant Livent overnight.
The NYSE-listed lithium miner saw its shares hurtle 30% higher after reporting a 17% increase in revenue to US$143.5 million and a 94% quarter on quarter jump in EBITDA to $53.2 million. This was well-ahead of the market’s expectations.
In addition, Livent’s CEO, Paul Graves, spoke very positively about current trading conditions, which seems to have given investor sentiment a big boost.
Strong lithium demand growth has continued in 2022. Published lithium prices in all forms have increased rapidly amid very tight market conditions and Livent continues to achieve higher realized prices across its entire product portfolio.
In light of this positive outlook, Livent has upgraded its full year revenue guidance by over US$200 million and its EBITDA guidance by over US$130 million.
It now expects revenue of US$755 million to US$835 million and EBITDA of US$290 million to US$350 million. The midpoint of this guidance implies year on year growth of 89% and 360%, respectively.
It certainly is a boom time for lithium stocks.
The post Here’s why ASX lithium stocks are rocketing higher today appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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 Scott Phillips.
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