It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Allkem Ltd (ASX: AKE)

According to a note out of Goldman Sachs, its analysts have initiated coverage on this lithium miner’s shares with a buy rating and $15.20 price target. With the broker expecting lithium prices to fall materially in the coming years, it feels investors should be very selective with where they invest. It likes Allkem due to its attractive valuation at 1x NAV and its plan to grow production 4x by FY 2027. The Allkem share price is trading at $13.02 on Friday.

Qantas Airways Limited (ASX: QAN)

Analysts at Morgans have initiated coverage on this airline operator’s shares with an add rating and $8.50 price target. Following Qantas’ latest update, the broker believes the discount being applied to its shares is unwarranted. Its analysts feel that solid value exists in Qantas’ shares given their expectation for further EBITDA growth over FY24/25 and pent-up travel demand underpinning a healthy demand environment for some time. The Qantas share price is fetching $6.21 this afternoon.

Rio Tinto Ltd (ASX: RIO)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this mining giant’s shares with an improved price target of $125.00. This follows an increase in spot commodity prices in recent weeks, which has led to an upgrade to its earnings estimates for the miner. The Rio Tinto share price is trading at $117.50 on Friday afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today
• Forecast for ASX 200 iron ore shares in 2023: bull vs bear
• Is this the beginning of a beautiful green hydrogen friendship between Fortescue and Rio Tinto?
• Why are ASX 200 lithium shares taking another beating on Friday?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has positions in Allkem. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a solid gain. At the time of writing, the benchmark index is up 0.5% to 7,210.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is down 18% to 59 cents. This follows the company’s strange decision to raise capital while it is the subject of a takeover approach. Bigtincan has raised $30 million from institutional investors at 60 cents per new share. SQN, which is aiming to acquire Bigtincan for 80 cents per share, described the decision as “value-destructive” for shareholders. Investors appear concerned it could now withdraw its offer.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 2.5% to $1.15. Investors have been selling this lithium developer’s shares this week after it was the subject of a bearish note out of Goldman Sachs. The broker initiated coverage on Core Lithium with a sell rating and $1.00 price target. Goldman is expecting lithium prices to tumble materially from the second half of next year.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The Pinnacle share price is down 4.5% to $8.38. This morning, this investment management company released an update on its performance fees. According to the release, for the 12 months ended 31 December, Pinnacle expects its net share of performance fees from affiliates to be potentially less than $1 million. This compares with $6.4 million for the corresponding period.

Warrego Energy Ltd (ASX: WGO)

The Warrego Energy share price is down 2.5% to 29.75 cents. Investors have been selling this energy explorer’s shares after Beach Energy Ltd (ASX: BPT) withdrew from the race to acquire the company. This leaves Hancock Energy in pole position to complete the deal.

The post Why Bigtincan, Core Lithium, Pinnacle, and Warrego shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today
• Why is ASX tech share Bigtincan crashing 20% on Friday?
• Why are ASX 200 lithium shares taking another beating on Friday?
• Warrego Energy share price slides as Hancock takeover offer trumps Beach
• Has the Core Lithium share price ‘run ahead of fundamentals’?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bigtincan and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Bigtincan and Pinnacle Investment Management Group. 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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Investing in small-cap ASX shares can increase the likelihood of realising greater returns. Conversely, snapping up smaller stocks can increase the risks involved in investing.

So, do small-cap ASX shares deserve a place in your portfolio? Well, I can’t speak for you. Personally, however, I would consider including a few small-caps in my holdings.

What is a small-cap?

Before we get too involved, let’s break down the definition of a small-cap.

As the name suggests, they are listed companies with smaller market capitalisations – often referred to a valuation – than the ASX’s giants.

As a rule of thumb, they have a market cap of a few hundred million to $2 billion. The S&P/Small Ordinaries Index (ASX: XSO) is often thought to be the benchmark index for small-caps.

As small-caps are small, they are also often growth shares. And therein lies the reason I would consider them for my portfolio.

Small caps can double as growth stocks

While S&P/ASX 200 Index (ASX: XJO) giants have plenty of cash and competitive advantages banked away to help them weather tough times, their potential growth is also generally limited.

Small-cap ASX shares, meanwhile, are often up-and-comers. That means investors can get in on quality companies before they make it big.

Many of the ASX’s biggest players were once tiny shares.

Fortescue Metals Group Limited (ASX: FMG) was just a penny stock in 2003, as my Fool colleague Sebastian reports. Today, it’s worth around $66 billion.

Though, not all small shares are future winners. Investing in small stocks can be riskier than investing in the big end of town, particularly as smaller companies may struggle more than their larger counterparts during hard times.

And, of course, picking future goliaths when they’re nothing but seedlings is notoriously difficult, but you’ve got to be in it to win it, in my opinion.

Beyond the growth potential on offer by small-cap ASX shares, I would consider a handful for diversification purposes.

Using small-cap ASX shares to diversify

Building a diverse portfolio can be key to navigating risk.

While risk is near-synonymous with investing, buying quality business in a variety of sectors – and sizes – can help protect one against single sector downturns and make the most of the good times.

That may mean a bit of stock picking. Though, I think the time and attention it takes to pick stocks I believe in is a small price to pay for a diverse portfolio.

However, if that were to sound like too much work, there are many ASX exchange-traded funds (ETFs) and index funds that provide exposure to many small-caps.

The post Should you invest in small-cap ASX shares? appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today
• Beat the All Ordinaries with this unstoppable ASX dividend share
• Seeing stars: ASX 200 casino operator hit with another blow
• ASX lithium newcomer Patriot Battery Metals dumps 28% on third day of trade
• Why is ASX tech share Bigtincan crashing 20% on Friday?

Motley Fool contributor Brooke Cooper 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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The S&P/ASX 200 Index (ASX: XJO) has followed the lead of Wall Street and is pushing higher. In afternoon trade, the benchmark index is up 0.4% to 7,203.5 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up 2.5% to $1.69. Investors appear pleased that Beach has decided to withdraw from the race to acquire Warrego Energy Ltd (ASX: WGO). Beach will instead expand its current active exploration drilling program in the Perth Basin. It believes the bidding war demonstrates that the area is one of the most exciting gas plays in Australia.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up 4% to $6.56. Investors have been buying this mineral exploration company’s shares this week following the release of promising drilling results from the Julimar Complex in Western Australia. Drilling at the greenfield Hooley Prospect, ~5km north of the current Gonneville Resource, has intersected a significant PGE-nickel-copper-cobalt-gold mineralisation.

Nitro Software Ltd (ASX: NTO)

The Nitro Software share price is up 2.5% to $2.11. This morning the company revealed that Potentia has increased its takeover offer by 10% to $2.00 cash per share. However, this is still lower than where Nitro’s shares trade today. This could be a sign that investors expect a further bid to be made.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is up almost 3% to $117.59. This follows another rise in the benchmark iron ore price overnight to beyond US$110 a tonne. Not even news that Morgans has downgraded this mining giant’s shares to a hold rating has been able to stop its ascent. Morgans said: “Despite stable fundamentals, reduced value upside leaves us neutral on the large iron ore miners.”

The post Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today appeared first on The Motley Fool Australia.

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More reading

• Forecast for ASX 200 iron ore shares in 2023: bull vs bear
• Is this the beginning of a beautiful green hydrogen friendship between Fortescue and Rio Tinto?
• Warrego Energy share price slides as Hancock takeover offer trumps Beach
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro 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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Beating the All Ordinaries Index (ASX: XAO) is a hard ask for most investors. Index investing is a highly efficient process, and if an investor wants to beat the index, they need to have the right temperament, be patient, and of course, find the right individual shares.

So let’s talk about one ASX dividend share that I think can help any investor beat the All Ords.

It’s Washington H. Soul Pattinson and Co Ltd (ASX: SOL). Soul Patts is one of the oldest companies on the ASX. Its roots go back to pre-Federation days. But today, Soul Patts is a rather unique ASX share.

It is a conglomerate running a massive and diversified portfolio of investments, which includes large chunks of other top-quality ASX shares.

These include Brickworks Ltd (ASX: BKW), TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC). But Soul Patts doesn’t just own other ASX shares. It also has large stakes in unlisted assets. These include farms, swim centres, corporate credit and water rights.

An unstoppable All Ords dividend share?

Apart from this impressive diversification, there are two more reasons why I think Soul Patts has what it takes to be an unstoppable investment and crush the All Ordinaries Index going forward.

The first is its unrivalled dividend track record. Soul Patts is the only ASX dividend share that can boast a 21-year streak of raising its dividend payments.

Since 2003, this company has delivered an 8.5% per annum compounded annual growth rate for its shareholder payouts.

In 2003, the company gave its investors a total of 17 cents per share in dividend income. In 2022, that had grown to 72 cents per share. I see no reason this streak will end anytime soon.

The second is this company’s track record of destroying the All Ordinaries Index’s returns over decades.

In its recently-held 2022 annual general meeting, Soul Patts confirmed that its shares have delivered a total shareholder return (including capital gains and dividends) of 12.5% per annum over the past 20 years (to 20 November 2022).

That compares rather well against the All Ordinaries Accumulation Index, which averaged 9.1% per annum over the same period. Soul Patts told investors that its shares have given investors a cumulative return of 945% since 2002, more than double the All Ords’ 461%.

Here’s a look at the Soul Patts share price against the All Ords since the turn of the century:

So it’s Soul Patts’ diversified portfolio of investments, unbeatable dividend track record, and market-crushing performance over two decades that leads me to believe this ASX All Ordinaries share is an unstoppable market beater.

The post Beat the All Ordinaries with this unstoppable ASX dividend share appeared first on The Motley Fool Australia.

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More reading

• 3 high-yielding ASX dividend shares that have surged more than 50% this year
• 3 passive income ASX 200 dividend shares that can help make you richer
• 10 ASX shares to buy in 2023
• Here are the top 10 ASX 200 shares today
• Why Domino’s, New Hope, PolyNovo, and Telstra shares are pushing higher today

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson And. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia has recommended Tpg Telecom. 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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The hits keep on coming for S&P/ASX 200 Index (ASX: XJO) casino operator Star Entertainment Group Ltd (ASX: SGR).

Star Entertainment shares went into a trading halt at the company’s request shortly after market open this morning.

The ASX 200 casino operator’s share price was up 0.6% for the day, at $2.55 per share when trading was paused.

Why is trading in the ASX 200 casino operator paused?

Star Entertainment requested the trading pause after the company was hit with yet another $100 million fine. This one coming from Queensland.

Star noted, “The trading halt is necessary as otherwise trading in securities may take place in an uninformed market.”

Queensland’s Attorney-General and Justice Minister, Shannon Fentiman, announced the penalty today after Star’s operating practices in the state’s casino were deemed unsuitable.

The ASX 200 casino operator faces a 90-day licence suspension should it fail to improve its practices by 1 December next year.

“Essentially, this means that Star has 12 months to get their house in order if they do not want to see a 90-day suspension of their licence,” Fentiman said (quoted by News.com).

Star was found to have enabled gamblers who had been banned interstate to gamble in its casinos in Queensland. Concerns were also raised over deficiencies in the company’s anti-money laundering/counter-terrorism financing program.

According to Fentiman:

These penalties have been considered very carefully following the damning findings of the Gotterson Review as well as considering the responses by Star as part of the show cause process…

Like many Queenslanders, I was appalled at the extent of the actions of The Star in welcoming excluded persons to their casinos and the exorbitant incentives on offer for questionable gamblers.

Star Entertainment share price snapshot

The Star Entertainment share price, pictured below, has taken a beating this year, down 33% in 2022. That compares to a year-to-date loss of 5% posted by the ASX 200.

The post Seeing stars: ASX 200 casino operator hit with another blow appeared first on The Motley Fool Australia.

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More reading

• Why PolyNovo, Smartgroup, Star, and WiseTech shares are falling
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX 200 shares that could be too cheap to ignore: fund manager

Motley Fool contributor Bernd Struben 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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ASX lithium share Patriot Battery Metals Inc (ASX: PMT) is having a tough run today following a flying start since its debut on the market.

This ASX lithium share is down 28% and is currently fetching $1.27. For perspective, the S&P/ASX 200 Index (ASX: XJO) is climbing 0.14% today.

Let’s take a look at what is going on at Patriot Battery Metals.

What’s going on?

Patriot Battery Metals is not the only ASX lithium share in the red today. The Core Lithium Ltd (ASX: CXO) share price is down 4.24% today, while the Sayona Mining Ltd (ASX: SYA) share price is falling 2.27%. Loyal Lithium Ltd (ASX: LLI) shares are down 9% today, while Lithium Plus Minerals (ASX: LPM) shares are falling 8.91%.

This follows Goldman Sachs predicting that lithium prices will start to decline from the second half of next year.

Patriot listed on the ASX at noon on Wednesday following an initial public offering (IPO). This raised $4.2 million.

Despite today’s falls, Patriot shares are still fetching more than double the listing price of 60 cents per share.

Patriot is also trading in Canada on the TSX Venture Exchange as (TSX-V: PMET). This listing fell 2.95% overnight to CAD$9.55.

Patriot owns the Corvette Property in the James Bay region of Quebec. Patriot says this land hosts “significant lithium potential”.

The company is expecting to receive assay results from its exploration projects in the future. CEO Blair Way said on Wednesday:

With the ASX listing blackout behind us I look forward to getting back to our normal news flow providing progress updates and assay results.

Patriot share price snapshot

The Patriot Battery Metals share price has soared 112% since joining the ASX.

This ASX lithium share has a market capitalisation of about $8.9 million based on the current share price.

The post ASX lithium newcomer Patriot Battery Metals dumps 28% on third day of trade appeared first on The Motley Fool Australia.

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More reading

• Patriot Battery Metals share price rockets again, up 26% in 2 days
• Patriot Battery Metals share price rockets after IPO

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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The Bigtincan Holdings Ltd (ASX: BTH) share price is ending the week deep in the red.

In afternoon trade, the sales enablement automation platform provider’s shares are down 20% to 57 cents.

Why is this tech share crashing?

Investors have been hitting the sell button today for a couple of reasons.

The first is that this morning the tech share revealed that it has completed a $30 million institutional placement at a 16.7% discount of 60 cents per new share. Bigtincan will also seek to raise a further $5 million from retail investors through a non-underwritten share purchase plan at the same price.

Management advised that the proceeds will be used to execute on identified strategic mergers and acquisitions, future inorganic and organic growth initiatives, and working capital and offer costs.

Takeover in danger of collapsing?

Bizarrely, this capital raising has come despite the company being the subject of a takeover approach from SQN Investors. Last week, SQN tabled an 80 cents cash per share offer, which is still under consideration.

As you might expect, SQN didn’t respond positively to the news of the capital raising and believes shareholders are being short-changed. This appears to have sparked fears that it could withdraw its offer if the capital raising goes ahead, which is weighing on the tech share today.

In an open letter, SQN commented:

BTH’s decision to pursue this would seem hasty and value-destructive following your receipt of our bona fide acquisition proposal that would offer the Company and its shareholders a significant all-cash premium. We strongly object to this proposed transaction and obviously will not participate in it if it materializes.

To be clear, the Company is on record with its CEO, David Keane, stating on July 27, 2022 that “the company is well funded with its cash balance. Given the cash flow discussion we’ve had today, the company is not looking to make any new capital raising activities, and there are no acquisitions currently planned.” This disclosure is one that we and likely other shareholders have relied upon when making investment decisions.

And then suddenly you would choose to embark on this potentially dilutive and speculative capital raise? We would urge you to instead honor your fiduciary obligations and engage with the various parties that have approached you about a control transaction, including SQN Investors.

The post Why is ASX tech share Bigtincan crashing 20% on Friday? appeared first on The Motley Fool Australia.

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More reading

• Why Bigtincan, Bubs, St Barbara, and Warrego shares are charging higher
• 3 ASX shares soaring on takeover bids today
• Guess which ASX All Ords tech share is soaring 12% on takeover news

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bigtincan. The Motley Fool Australia has positions in and has recommended Bigtincan. 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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S&P/ASX 200 Index (ASX: XJO) iron ore shares have enjoyed a very strong month on the back of fast-rising iron ore prices.

On 2 November, the industrial metal was trading for US$82 per tonne. Today the iron ore price increased by another 3% to be trading for just under US$111 per tonne, offering some healthy tailwinds to the big iron ore miners.

Here’s how the ASX 200 iron ore shares have performed since 10 November:

BHP Group Ltd (ASX: BHP) shares have gained 14%.

The Rio Tinto Ltd (ASX: RIO) share price is up 19%.

And Fortescue Metals Group Limited (ASX: FMG) shares have leapt 25% in a month.

Now, there are numerous company-specific factors that will determine how well these ASX 200 iron ore shares perform heading into 2023. But the price of the steel-making metal is clearly one to watch.

With that said, below we look at two divergent forecasts to bear in mind.

Will ASX 200 iron ore shares enjoy higher or lower prices?

Sounding off for the bulls are analysts at Citi.

The broker believes iron ore prices will remain strong in 2023, in large part thanks to China. Citi believes China’s reopening from its COVID zero policies should help the world’s number two economy restart its growth engine.

The broker is also bullish on its outlook for China’s embattled property sector following recent measures from the Chinese government to support the iron-ore-hungry sector.

Provided China moves forward with its reopening plans, and the government offers additional significant assistance to the nation’s real estate sector, Citi said the iron ore price could hit US$150 in 2023.

That price would certainly be welcomed by ASX 200 iron ore shares.

“China is making meaningful progress towards further reopening,” Citi’s analysts said. “We believe iron ore prices could rally towards $US150 a tonne if China rolls out meaningful credit easing in the next three [to] six months.”

But not everyone agrees with this forecast.

Sounding off for the bears is Vivek Dhar, mining and energy analyst at Commonwealth Bank of Australia (ASX: CBA).

CBA believes that some analysts have put too much positive spin on the impact China will have on iron ore prices in 2023. CBA is forecasting a peak of US$100 per tonne for the industrial metal in the third quarter of 2023.

If CBA has it right, that could put some pressure on the ASX 200 iron ore shares heading into 2023 following the recent rally.

According to Dhar (courtesy of The Australian Financial Review):

While we see upside risks to our iron ore price forecast over the next year, we think prices above US$120 a tonne are unlikely to be justified by China’s steel demand impulse next year…

While steel demand from China’s property sector is unlikely to decline in 2023 like it probably will in 2022, it’s still difficult to see steel demand in China’s property construction sector growing next year. In fact, the sector that is likely to underpin China’s steel demand growth in 2023 is infrastructure.

With CBA forecasting steel demand will grow at most 2% in 2023, Dhar said, “Such a view brings into question the sustainability of the recent rally in iron ore prices.”

How have the big iron ore miners been tracking over the year?

Over the past 12 months, the BHP share price has gained 17%, Fortescue shares are up 18%, and the Rio Tinto share price is up 23%.

All three of the ASX 200 iron ore shares have smashed the benchmark return, with the ASX 200 down 3% over the full year.

The post Forecast for ASX 200 iron ore shares in 2023: bull vs bear appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben 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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The Patriot Lithium Limited (ASX: PAT) share price has hit the ASX boards running this morning following the completion of its initial public offering (IPO).

In morning trade, the lithium explorer’s shares rose a whopping 120% from their IPO price to 44 cents.

If you’re getting a sense of déjà vu, you’re probably not alone.

Earlier this week, another similarly named lithium share, Patriot Battery Metals Inc. (ASX PMT), doubled in value after completing its own IPO.

What is Patriot Lithium?

Patriot Lithium is a United States based lithium explorer with a focus on the Black Hills region of South Dakota and the Pegmatite Belt region of Arizona.

Management notes that these two regions were selected as a high priority to achieve the company’s goals of acquiring, exploring, developing, and mining high grade hard rock lithium projects in North America following a systematic and technically driven prospectivity review of lithium projects in the United States.

The company raised $10 million from its IPO through the issue of 50 million shares at an issue price of $0.20 per share. Combined with other shares on issue, this gave it an indicative market capitalisation of $16.9 million. Though, following today’s gain, this has now increased to approximately $40 million.

Patriot Lithium’s non-executive chairman, Philip Thick, appears positive on the company’s future thanks to its experienced management team and increasing demand for lithium in North America. He said:

The US supplies only 1% of global lithium and imports have doubled since 2014. In terms of US Lithium demand, Ford and Volkswagen have formed a global alliance with a focus on North America, to build EV’s and EV Technologies.

With both these market dynamics, and government and industry strategies in mind, the Company set out to secure high grade hard rock (spodumene) projects based on a technically driven prospectivity review of lithium projects across the US and is now set to commence an aggressive exploration and development program across its projects in the Black Hills and Pegmatite Belt regions, seeking high grade hard rock (spodumene) mineralisation.

The Board has significant expertise and experience in the lithium industry and will aim to ensure that funds raised through the Public Offer will be utilised in a cost-effective manner to advance the Company’s business.

The post Patriot Lithium share price jumps 120% after IPO appeared first on The Motley Fool Australia.

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More reading

• Is this the beginning of a beautiful green hydrogen friendship between Fortescue and Rio Tinto?
• Is the iShares S&P 500 ETF (IVV) really down 95% today?
• Dividend darling becomes disappointment: What happened to Fortescue shares?
• Why are ASX 200 lithium shares taking another beating on Friday?
• Warrego Energy share price slides as Hancock takeover offer trumps Beach

Motley Fool contributor James Mickleboro 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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