Guess which ASX lithium share has exploded more than 500% in a year

Investors in ASX lithium share Global Lithium Resources (ASX: GL1) have made significant gains in the past year.

The company’s shares have soared 538% since market close on 21 October 2021 and are currently trading at $2.65.

Let’s take a look at this ASX lithium share in more detail.

What’s going on?

Global Lithium Resources is exploring the Marble Bar and Manna lithium projects in Western Australia.

The company’s share price appears to have soared on news from these projects and lithium sector momentum.

On 23 December, Global Lithium advised it had acquired lithium rights at the Manna Lithium project. Shares in Global Lithium soared 17% on this day.

Shares surged nearly 112% between 25 February and 4 April alone. On 3 March, the company signed a 10-year spodumene concentrate offtake agreement with Suzhou TA&A Ultra Clean Technology Co.

Then on 14 March, the company advised a $29.9 million capital raise had attracted Mineral Resources Limited (ASX: MIN) as a foundation investor with a 5% interest in the company.

Between 5 and 15 September, Global Lithium shares soared another 73% to a yearly high of $2.93.

On 13 September, the ASX lithium share released drilling results from the Manna project. Drilling at the site returned the “highest ever grade” of lithium-bearing pegmatite in the project’s history.

Global Lithium has recently signed an MOU with Korean battery maker SK On. The companies will explore a range of potential business ventures, including developing downstream lithium assets.

Looking ahead, a recent Industry Department report predicts lithium prices to rise in 2023 and 2024 before pulling back in 2024.

Global Lithium share price snapshot

Global Lithium Resources shares have leapt around 130% in the year to date, while they have gained 5% in the past month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed 12% in the year to date.

This ASX lithium share has a market capitalisation of about $425 million based on the current share price.

The post Guess which ASX lithium share has exploded more than 500% in a year appeared first on The Motley Fool Australia.

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More reading

• Charging up: Here are the 3 top performing ASX lithium shares of Q1
• Why did the Galan Lithium share price drop 7% on Monday?
• These were the 3 best performing ASX lithium shares in September
• Here are the big ASX lithium share winners and losers on Friday
• Why Cogstate, Global Lithium, Premier, and Woodside shares are charging higher

Motley Fool contributor Monica O’Shea 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 Scott Phillips.

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