Here’s a top ASX lithium stock pick from a ‘commodity bear’

Analysts at Liberum Capital have listed ASX lithium stock Atlantic Lithium Ltd (ASX: A11) among the resources shares they are positive about for the future.

The Atlantic Lithium share price has dropped nearly 13% in the year to date. In Wednesday’s trade, the company’s share price finished flat at 54 cents.

Let’s take a look at the outlook for this ASX lithium stock.

What’s ahead?

Atlantic Lithium is exploring lithium at the Ewoyaa project in Ghana, West Africa. The company is aiming to take the project to production. Ewoyaa is funded via a deal with Piedmont Lithium Inc (ASX: PLL).

Atlantic Lithium says it is aiming to produce a “sustainable lithium supply” to support the global transition to a carbon-neutral future.

Recently, analysts at Liberum Capital named the share on its “preferred list”, the Australian Financial Review reported.

Among multiple global resources companies named by Liberum, Emmerson Resources Ltd (ASX: ERM) also made the cut.

However, among its “least preferred shares” were BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

Commenting on the commodities sector, Liberum said:

We expect most commodity prices to slide from their post-lockdown reflation highs towards fundamentally supported levels.

General demand growth across metals-energy steel remains broadly intact – and likely to remain so this year. Supply growth continues to slow, in response to the collapse in the sector’s capex cycle.

On Wednesday, Atlantic released an investor presentation to the market. Atlantic’s mineral resource estimate at the Ewoyaa mine is 35.3 Mt at 1.25% lithium oxide.

The company has a cash balance of $19.1 million as of 31 December.

Share price snapshot

The Atlantic Lithium share price has slid nearly 7% in the last 12 months. However, in the past week, it has climbed nearly 15%.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has descended about 5% in the past year.

This ASX lithium stock has a market capitalisation of about $327 million based on its last closing price.

The post Here’s a top ASX lithium stock pick from a ‘commodity bear’ appeared first on The Motley Fool Australia.

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More reading

• Why Atlantic Lithium, Pushpay, St Barbara, and Temple & Webster shares are rising
• Guess which ASX lithium share just rebounded 15%
• Why Atlantic Lithium, Life360, Neuren, and Whitehaven Coal shares are charging higher
• Why Atlantic Lithium, Arafura, Brainchip, and Core Lithium shares are falling
• Why Atlantic Lithium, CBA, Piedmont Lithium, and Pilbara Minerals shares are dropping

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.

from The Motley Fool Australia https://www.fool.com.au/2023/04/06/heres-a-top-asx-lithium-stock-pick-from-a-commodity-bear/