3 ASX lithium shares hammered after quarterly updates on Tuesday

The S&P/ASX 200 Materials Index (ASX: XMJ) closed 0.76% lower today, but three ASX lithium shares fell much harder.

The IGO Ltd (ASX: IGO), Leo Lithium Ltd (ASX: LLL), and Loyal Lithium Ltd (ASX: LLI) share prices all finished well in the red today.

For perspective, multiple ASX 200 lithium shares also closer lower. For example, Core Lithium Ltd (ASX: CXO) lost 5.69%, while Pilbara Minerals Ltd (ASX: PLS) shares shed 5%.

Let’s take a look at what three ASX lithium shares reported to the market today.

IGO

IGO shares closed down 7.08% today despite the company reporting record earnings before interest, taxes, depreciation and amortisation (EBITDA) in today’s half-year financial report.

The company’s EBITDA soared 269% on the prior corresponding half to $834 million. The company also delivered a record net profit after tax (NPAT) of $591 million, a 549% increase on H1FY22.

The board declared a 14 cents per share fully franked interim dividend for FY23, another record for IGO shareholders. The record date of the dividend will be 17 March 2023 and payment is planned for 31 March.

Commenting on the results, IGO acting CEO Matt Dusci said:

Strong lithium prices combined with a growing production profile at Greenbushes, generating outstanding financial returns for shareholders, while the team continues to focus on expanding the mine and processing capacity to deliver on future production growth.

Leo Lithium

Leo Lithium shares tanked 9.63% today to 61 cents apiece. This lithium company has a goal of becoming West Africa’s first lithium producer.

Today, Leo Lithium reported a cash balance of $70.8 million as of 31 December.

The resource base at the company’s Goulamina Lithium Project in Mali lifted by 33.8 Mt to 142.3 Mt. The Goulamina joint venture held US$108.5 million in cash at the end of the quarter.

Leo Lithium reported that early revenue from the export of direct shipping ore is forecast for the second half of 2023.

Its first spodumene concentrate product is targeted for the second quarter of 2024.

Commenting on the results, managing director Simon Hay said:

The December quarter was a transformational one for Leo Lithium. Only a few weeks ago we received the results from a considerable resource upgrade which exceeded our expectations, confirming the large-scale, high-grade resource at Danaya, and creating new drilling targets for the team. The results also support the possible extension of the current 23-year mine life of the Goulamina Project.

Loyal Lithium

Loyal Lithium shares lost 8.26% on Tuesday. The lithium explorer reported it holds about $6.57 million cash as of 30 December. The company has executed a $4.5 million placement to boost lithium exploration.

Loyal Lithium said it is continuing to execute its strategic business plan, with a focus on North American lithium.

Loyal reported strong lithium and boron results at the Scotty Lithium project. Exploration work is continuing at the project.

At the Brisk Lithium Project, an inaugural field program was completed, revealing more pegmatite outcrops than expected.

At the Triest Lithium project, the company is planning to conduct field mapping in Spring 2023. This project is located 14km east of Winsome Resources’ Adina Lithium project, which recently showed a “significant mineralised intercept”.

A highlight for the company during the quarter was the formal name change and launch of the company’s website www.loyallithium.com in November 2022.

The post 3 ASX lithium shares hammered after quarterly updates on Tuesday appeared first on The Motley Fool Australia.

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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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