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Australians are cashed up and ready to spend big on travel, entertainment and cars this year, according to the latest data.

Commonwealth Bank of Australia (ASX: CBA) on Tuesday released its most recent Household Spending Intentions study results, showing the economy could be in for a massive post-COVID comeback in 2021.

“While the situation warrants some caution, we continue to expect solid household spending and economic growth for Australia through 2021,” said CBA senior economist Belinda Allen.

Combining December data from the bank and Google, the study found spending intentions for travel rebounded into the positive for the first time in 2020.

Big year-on-year jumps in spending were recorded for camping and outdoor-related goods and services. CBA senior economist Belinda Allen said this indicated Australians were looking for fun in rural areas in lieu of international travel.

“Travel spending intentions jumped solidly in December 2020 as state border restrictions were largely lifted,” she said.

Many state borders did close again late in the year after a resurgence of the coronavirus in Sydney and Melbourne. But card transaction data indicated these had a “modest impact” on spending.

The uplift in travel would be good news for ASX shares like Qantas Airways Limited (ASX: QAN), Regional Express Holdings Ltd (ASX: REX) and Webjet Limited (ASX: WEB).

We’re also up for entertainment and cars 

Both actual spending and Google search data showed Australians intended to spend more on entertainment. Health and fitness also showed a spike in spending.

Perhaps scared off public transport due to virus worries, Australians are also flocking to buy cars.

“Relative to the end of 2019, December 2020 saw strong increases in actual spending on new and used motor vehicles and an increase in loan applications to purchase a motor vehicle,” said Allen.

A busy car sector is positive for ASX shares such as Eagers Automotive Ltd (ASX: APE), Carsales.Com Ltd (ASX: CAR) and Transurban Group (ASX: TCL).

One spending intention that dipped was home buying.

Housing fervour actually jumped in November, but cooled off in December — perhaps reflecting the quiet Christmas holiday period for the real estate sector.

“We continue to expect the home buying market to be a key source of support for the Australian economy in 2021 – driven largely by the very low level of interest rates,” said Allen.

Allen added that a buoyant housing market would also support a boost in the motor vehicle sector.

CBA’s Household Spending Intentions study is performed monthly, with the bank’s actual spending data combined with Google search’s prospective purchase data to form a forward-looking view for the Australian economy.

More reading

• Risk vs uncertainty: why one is a lot worse
• ASX dividends: Are miners the new bank shares?
• Think you saw growth in 2020? Just wait for 2021: fundie
• Here are the 10 most shorted shares on the ASX
• Pendal (ASX:PDL) posts $5 billion increase in FUM

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited and Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The IOUpay Ltd (ASX: IOU) share price was a strong performer this morning until fading in afternoon trade.

The payments company’s shares were up as much as 11.5% to 19.5 cents at one stage.

In late trade, the IOUpay share price is up 3% to 18 cents.

Why did the IOUpay share price jump higher?

Investors were buying the company’s shares this morning after the release of a positive announcement.

According to the release, IOUpay has secured a Malaysian Money Lending Licence which is required to comply with Malaysia’s Money Lending Act 1951 and Financial Services Act 2013. This licence will be used for the provision of buy now pay later (BNPL) service offerings to consumers and merchants in Malaysia.

The company secured the licence by acquiring 100% of the ordinary shares in licence holder Sibu Kurnia Marine in exchange for RM4,300,000 (A$1,375,000).

Management advised that it engaged two independent valuation experts and obtained formal valuation reports to determine an equity valuation of holder Sibu Kurnia Marine before settling on a buy price. Pleasingly, both reports provided values in excess of the final agreed consideration.

What now?

IOUpay believes this is an important milestone in the company’s plans to launch BNPL services in the country and notes that it is ahead of schedule.

The company’s chairman, Mr Lee Chin Wee, explained: “The completion of this critical milestone ahead of schedule enables the Company to now accelerate its plans to capitalise on the significant market opportunities in the BNPL and digital payments sectors as highlighted in our Corporate Presentation and Investor Update last year.”

“Notwithstanding the regional COVID-19 environment including the revised Movement Control Order (MCO) implemented by the Malaysian Government last week, the market conditions and demand for our product offerings remain strong which is consistent with the continued increased uptake in online purchases and payments across the South East Asia region last year,” he concluded.

More reading

• Why the Bingo (ASX:BIN) share price is shooting 18% higher
• Leading brokers name 3 ASX shares to sell today
• IOOF exec says she was sacked for mental illness
• Why the European Lithium (ASX:EUR) share price is rocketing 50% today
• Here’s why the Novonix (ASX:NVX) share price is surging 17% higher

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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Bingo Industries Ltd (ASX: BIN) shares are rocketing higher today following the company’s response to media reports of a potential acquisition proposal. At the time of writing, the Bingo share price is trading at $3.23, up 17.9% from yesterday’s closing price.  

What’s driving the Bingo share price?

The Bingo share price is on the move today after the company released a response to media reports that it had received a takeover offer from CPE Capital. Describing the offer as an “unsolicited, highly conditional, non-binding, indicative proposal”, today’s announcement used a really good collection of words to let everyone know the acquisition is definitely not set in stone. 

The offer presented by CPE Capital comes with an indicative cash price of $3.50 per share, as well as a potential scrip alternative, and is currently being considered by a Bingo independent board committee.

According to Bingo, the proposal will be subject to several conditions, including due diligence and financing, if it proceeds.

Bingo’s latest investor presentation

During its latest investor presentation to UBS Group in November last year, Bingo claimed it had identified a five-year growth plan, invested in a strategic network of waste infrastructure, and strengthened the company’s overall financial position. 

Bingo also highlighted its capability to navigate through the COVID-19 pandemic and maintain solid momentum regardless of the associated lockdown restrictions.

During the presentation, Bingo further advised that all its FY20 development milestones had been reached and the company was now “utilising these assets to increase returns and cash flow”.

According to Bingo, the company is in a strong position with a well-developed pipeline of work spanning at least the next five years. 

Financial performance and sustainability

For FY20, Bingo finished up with underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $152.1 million. The company also gained a 21% boost to its revenue bringing it up to $486.7 million.

In addition to its key financial reports, Bingo also produces an annual sustainability report. According to the report, the company added value to society through various activities such as its school education program and donations to the Cancer Council. 

Bingo share price snapshot

Based on the current Bingo share price, the company has a market capitalisation of $1.8 billion with 654.3 million shares outstanding. Bingo shares reached a 52-week high of $3.47 in February last year just prior to the coronavirus-induced bear market.

The Bingo share price is currently trading a little over 8% lower than where it was this time last year.

More reading

• ASX 200 up 1.2%: Bingo rockets, Rio Tinto update, Domino’s jumps
• Why Bingo, Creso Pharma, Domino’s, & Tyro shares are zooming higher today
• These were the best performing ASX 200 shares last week
• ASX 200 rises 0.7% on Friday
• ASX 200 up 0.4%: Afterpay & Zip charge higher, NAB rises, Harvey Norman hits new high

Motley Fool contributor Gretchen Kennedy 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 Bruce Jackson.

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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

Bendigo and Adelaide Bank Ltd (ASX: BEN)

According to a note out of Goldman Sachs, its analysts have downgraded this regional bank’s shares to a sell rating but with an improved price target of $9.24. The broker made the move due to net interest margin risks and on valuation grounds. In light of this, it sees better value on offer elsewhere in the banking sector for investors. Goldman is also currently forecasting FY 2021 earnings that are notably lower than consensus estimates. The Bendigo and Adelaide Bank share price is trading at $9.66 on Tuesday.

Blackmores Limited (ASX: BKL)

Analysts at Citi have retained their sell rating and $60.60 price target on this health supplements company’s shares. According to the note, the broker’s research indicates that its rivals have been winning a greater share of the Chinese market. In addition to this, it sees difficulties from increased competition in the ANZ market and disruption in the daigou channel due to COVID-19. The Blackmores share price is trading at $72.03 this afternoon.

Pilbara Minerals Ltd (ASX: PLS)

A note out of Ord Minnett reveals that its analysts have retained their sell rating but lifted the price target on this lithium miner’s shares to 50 cents. According to the note, the broker has been looking into the resources sector and has lifted its price estimates for a number of commodities. And while the outlook for lithium is looking a lot more positive and Pilbara Minerals is performing well operationally, it believes the rise in its share price over the last three months has left its shares overvalued. The Pilbara Minerals share price is fetching $1.15 today.

More reading

• We have lift-off: Vulcan Energy (ASX:VUL) share price hits new heights
• 5 things to watch on the ASX 200 on Tuesday
• Why the Greenvale (ASX:GRV) share price surged 9% today
• Outage issues could weigh on growth for the Tyro (ASX:TYR) share price
• Does Xinja’s downfall mean neobanks are dead?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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IOOF Holdings Limited (ASX: IFL) has another legal battle looming with its own staff, after a former executive accused it of sacking her after it was informed she had a mental illness.

Ex-head of communications Dr Jane Rennie has claimed in court documents that the company dismissed her after she expressed a need to take personal leave or submit a WorkCover claim as a result of work stress, as first reported in the Australian Financial Review.

Rennie claims the company told her she would be redeployed, but she was made redundant less than a week after she reported her situation.

IOOF had not responded to requests for comment from The Motley Fool at the time of writing.

The finance company also allegedly didn’t consider her for any alternative positions after the redundancy, even though Rennie thought it was a “redeployment period”.

The former executive is requesting IOOF be ordered to return her to the job, plus reparations for loss of work, reputation damage and trauma.

IOOF has reportedly submitted in court papers that the redundancy was due to a corporate restructure. 

It also denies that Rennie had flagged she needed to take leave or apply for worker’s compensation. The company claims Rennie declined an offer to take personal leave.

The IOOF share price is up 1.50% on Tuesday afternoon, trading at $3.72.

IOOF’s culture in the spotlight

The serious allegations come just days after 2 male executives were accused of sexual harassment and discrimination.

In a separate court case, deputy chief investment officer Stanley Yeo was accused of inappropriate touching and remarks towards a female staffer.

Among many instances listed in legal documents, Yeo is alleged to have touched the woman’s breasts at her own wedding in front of family and friends.

The same woman accuses head of fixed interest assets Osvaldo Acosta of discrimination on the basis of gender.

When the alleged victim offered her input on a work matter, Acosta is accused of saying “You always give your opinion. Not only do I have a wife at home, I have you here in the office”.

The woman is asking the court to order IOOF to compensate her for loss of opportunity and loss of future income, plus provide damages for humiliation and distress.

The IOOF scandals come after fellow finance giant AMP Ltd (ASX: AMP) had a shocking 2020 dealing with the fallout from its promotion of Boe Pahari to CEO of AMP Capital. 

After details of serious sexual harassment allegations against Pahari became public, the company came under pressure from shareholders to reverse his plum appointment.

An investor campaign eventually forced two directors to fall on their sword and Pahari was returned to his old position.

More reading

• IOOF (ASX:IFL) execs accused of sexual harassment
• Does Xinja’s downfall mean neobanks are dead?
• The latest ASX “buy” recommendations from top brokers
• The ASX 200 stock facing a day of reckoning at the February reporting season
• ASX 200 drops 1.1%

Motley Fool contributor Tony Yoo owns shares of IOOF Holdings Limited. 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 Bruce Jackson.

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The European Lithium Ltd (ASX: EUR) share price is rocketing higher today. This comes after the company announced it has received commitments to fund its lithium exploration activities.

At the time of writing, the lithium miner’s shares are up an astonishing 42% to 0.099 cents. It’s worth nothing that during midday trade, the European Lithium share price reached an intraday high of 13 cents.

What’s shooting the European Lithium share price?

According to its release, European Lithium has welcomed the positive placement to raise $7 million through sophisticated investors. The offer price of 5 cents per share represents a steep discount on the current European Lithium share price. In addition to the take up offer, investors will also be issued one option for every 2 shares received. The exercise price for this option is 7.5 cents and will expire 3 years from the date of issue.

The company stated that the monies raised from the institutional placement will complement its proposed share purchase plan. The latter which is due to close this Friday, 22 January.

The funds will be allocated towards its exploration and development on its Wolfsberg Lithium Project in Austria. In addition, the company will seek to search for gold through its West Australian strategic tenement. Recent gold discoveries have been made by a number of companies within the North West Western Australian region.

European Lithium advised that the issuance of shares from the placement will be done without shareholder approval.

Words from the chair

European Lithium chair, Mr Tony Sage, touched on the company’s prospects, saying:

We are excited by the huge support in the Placement shown by institutional and high net worth investors in Australia, Asia and Europe. We believe this reflects the positive market sentiment for battery metals. After a very challenging year we now see demand for lithium chemicals to support a very strong EV market which led to the recent lithium price rally.

The funds will also be used to explore our recently acquired gold project in the hottest region in Australia with De Gray, Azure, Artemis and Novo all finding success.

More reading

• Here’s why the Novonix (ASX:NVX) share price is surging 17% higher
• ASX stock of the day: Hazer Group (ASX:HZR) share price surges 14%
• We have lift-off: Vulcan Energy (ASX:VUL) share price hits new heights
• Why the Lake Resources (ASX:LKE) share price jumped 16% to a 52-week high
• Top fundie Hyperion to launch new growth ETF

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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The Novonix Ltd (ASX: NVX) share price has been a strong performer on Tuesday.

In afternoon trade the shares of the integrated developer and supplier of high-performance materials, equipment, and services for the lithium-ion battery industry are up 17% to $1.83.

Why is the Novonix share price surging higher?

Investors have been buying the company’s shares today following the release of an announcement.

According to the release, the company has appointed Professor Jeff Dahn as its Chief Scientific Advisor, effective July 1.

Prof. Dahn is a leading researcher in the field of lithium-ion batteries and materials and currently holds the title of NSERC/Tesla Canada Industrial Research Chair with Dalhousie University. He has co-authored 730 papers and has 73 inventions with patents issued or filed. These include some of the early patents related to Lithium-Nickel-Manganese-Cobalt-Oxide cathode material in 2001.

The release explains that Prof. Dahn will provide advice with respect to Novonix initiatives across its battery materials and research businesses, as well as key customer and business development projects.

In addition to this role, Prof. Dahn and the Dalhousie University research team in Halifax, Nova Scotia will continue to work alongside electric car giant Tesla.

Novonix’s Chief Executive, Dr. Chris Burns, commented: “We are extremely excited to have Prof. Dahn join the Novonix team and become involved in our initiatives to develop and supply world-leading materials to the lithium-ion battery sector. I am personally pleased to have the opportunity to work together with Prof. Dahn again as his insights, industry contacts and experience will be a huge asset for our business.”

Prof. Dahn revealed that he was very pleased to be working with Novonix.

He said: “I have always wanted to be able to help local Nova Scotian businesses in the battery space and I’m happy to be taking on this advisory role. The Novonix team is comprised of creative scientists and engineers who are doing exciting and novel work. I am thrilled to have this opportunity.”

More reading

• These 3 ASX shares all posted massive gains today

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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The Hazer Group Ltd (ASX: HZR) share price is surging today, up 14.07% at the time of writing to $1.23 a share. That represents a market capitalisation of $177.8 million.

Hazer shares closed at $1.07 yesterday and opened at $1.13 today before climbing as high as $1.27 soon after. These levels are a new all-time high for the company. It also puts Hazer up more than 80% in the past month, and more than 200% over the past 12 months.

So what is the Hazer Group? And why is the Hazer share price rocketing today?

Lazer, blazer, Hazer?

Hazer Group is a company that, in its own words, is “pioneering a low-cost, low-emission hydrogen and graphite production process [the Hazer process]”. Hazer says this process enables the effective conversion of natural gas and similar feedstocks into hydrogen and high quality graphite, using iron ore as a process catalyst.

Using this technology, the company aims to “play a significant role across three multi-billion dollar global markets” by producing hydrogen at a lower cost than alternative methods.

It does so by taking methane (a potent greenhouse gas) and breaking it down using the ‘Hazer process’ into its elements of hydrogen and carbon (in graphite form). It then is able to sell the hydrogen as a fuel and the graphite as a low-cost industrial input.

Hazer notes that hydrogen has a global market worth around US$100 billion. Hydrogen is used in many commercial applications such as ammonia production and in the petroleum industry. It is also touted as a potential fuel for zero-emission vehicles and electricity generation.

Meanwhile, graphite has many industrial applications as well. This includes (as Hazer points out) lithium-ion batteries that are found in electric vehicles. The company also notes that traditional graphite extraction is highly damaging to the environment as it usually involves large open-cut mines. It also necessitates the use of harsh petroleum products in the refining process. Hazer’s graphite requires none of these for production.

Why is this company’s share price surging today?

Normally a share price move like we’ve seen with Hazer today is spearheaded by a company announcement or some other big news. But strangely, there appears to be no obvious catalyst for the moves we are seeing today.

The company’s last announcement to the markets was back on 12 January. And that was just some fairly unnotable information regarding the company’s recent annual general meeting. We did also see a notice that one of  Hazer’s directors, Tim Goldsmith, had picked up a hefty parcel of shares. But that was back on 4 January.

As such, we can probably put today’s moves down to good old-fashioned buying pressure. ASX data shows that trading volume today hit 1.8 million shares, well above the company’s 5-day average of just under 1.5 million.

In fact, the volume has either been at, or exceeding, this average over the past 5 days. We could just be witnessing a classic momentum story here.

Electric car companies like Tesla Inc (NASDAQ: TSLA) are all the rage right now. Could it be guilt by association?  Maybe it’s because sometimes when investors see that a company is up 55.7% year to date (and it only 19 January), they just assume it will keep going up. Or maybe someone knows something we all don’t yet.

Sometimes the markets give us a curveball when things aren’t as obvious as we’d like. But that’s investing for you!

More reading

• We have lift-off: Vulcan Energy (ASX:VUL) share price hits new heights
• Why the Lake Resources (ASX:LKE) share price jumped 16% to a 52-week high
• Top fundie Hyperion to launch new growth ETF
• Top broker says you should buy these oversold ASX gold stocks now
• Here’s why the Rhythm (ASX:RHY) share price hit an all-time high today

Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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 Bruce Jackson.

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For their ninth consecutive trading session, Vulcan Energy Resources Ltd (ASX: VUL) shares are pushing higher. Upon opening this morning, the Vulcan share price raced to an all-time high of $14.20, up 57%. Vulcan is now catching its breath, with the company’s share price retreating to $10.36 at the time of writing, up 14.6% for the day.

The lithium focused mineral exploration company must have set a new year’s resolution – in true #newyearnewme fashion. It appears Vulcan is adhering to a strict, greens-only diet, with not a single red day of trading so far this year. Although, the abundance of green in 2021 is not exclusive to Vulcan.

Lithium glow up

It seems lithium is having its time in the sun. Continued demand for its use in electric vehicle (EV) batteries, a new Biden presidency, and government environmental mandates have all contributed to the lift in lithium prices of late.

China carbonate prices are at 14-month highs, as reported in Friday’s Fastmarkets Metal Bulletin global lithium wrap. Additionally, battery-grade lithium hydroxide gained 10.3% week over week as a result of the low availability of cheap materials.

Lithium miners regaining lustre

We have all seen the rapid growth in many EV shares abroad in the last six months. Tesla Inc (NASDAQ: TSLA) shares are up 655%, Nio Inc (NYSE: NIO) is up 339%, and Xpeng Inc (NYSE: XPEV) is up 125%. However, until recently many lithium mining shares lagged their offtake partners.

The weighing lithium price suppressed many lithium mining companies from achieving similar returns during this boom in recognition of the vehicle electrification trend.

However, now with the supportive commodity price, the market has rallied behind such companies. Other than the rise in the Vulcan Energy share price, there are also other examples of surging valuations among ASX lithium producers.

Vulcan share price, in good company

Although no other lithium miner/explorer/producer registers on quite the same level as the Vulcan share price performance, there are a few honourable mentions.

The Galaxy Resources Limited (ASX: GXY) share price, for instance, has appreciated 136% in the last 12 months. Its $1.41 billion market capitalisation makes Galaxy one of the biggest lithium producers on the ASX. Reportedly, the miner is now even examining the potential to ramp up its Mt Cattlin lithium mine to full capacity to capture the value in the higher commodity prices.

Pilbara Minerals Ltd (ASX: PLS) has returned a sturdy 220% in the last year. The Australian lithium producer has taken advantage of its recent strength by seeking to acquire Altura Mining Limited (ASX: AJM). The company is eying off capturing the continued lithium demand by broadening its explorations through the acquisition.

Piedmont Lithium Ltd (ASX: PLL) has notched up an impressive one-year return of 317%. Prior to late September last year, the Piedmont share price was trading at around 10 cents, then it all changed with one announcement. The United States-based lithium miner obtained a supply agreement with Tesla for its spodumene concentrate. Since then, the company has gone on to pen a deal with the Canadian miner Sayona Mining Ltd (ASX: SYA) to acquire the greater of 50% or 60,000 tonnes per annum of spodumene concentrate from Sayona. 

Falcon 9 or Starship for this Vulcan share price rocket?

As we all know, when it comes to New Year’s resolutions, often they get broken after the first month. The question is, when will the green streak break for the Vulcan share price?

More pressing, when it does, will it make a gracious reverse onto a stable platform – primed for its next launch? Or will it starship – dropping out of the air to crash in fiery flames?

Only time will tell, as shareholders await the company’s definitive feasibility study, following the recent release of its positive Pre Feasibility Study.

More reading

• What does the Biden administration mean for ASX shares? 
• Why the Greenvale (ASX:GRV) share price surged 9% today
• Why the Vulcan Energy (ASX:VUL) share price is up 4,000% in 12 months
• The Vulcan (ASX:VUL) share price is hitting new highs today. Here’s why
• Here’s why the Sayona (ASX:SYA) share price has surged 235% higher this week

Mitchell Lawler owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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 Bruce Jackson.

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The Lake Resources N.L. (ASX: LKE) share price has continued its positive run on Tuesday.

Earlier today the lithium-focused mineral exploration company’s shares were up 16% to a 52-week high of 18 cents.

Why is the Lake Resources share price at a 52-week high?

This morning Lake Resources announced that shallow drill testing is underway on-site at its flagship Kachi Lithium Brine Project, Argentina. This is part of the development activities required for the Definitive Feasibility Study (DFS).

According to the release, geophysical studies have assisted the planning of the shallow wells. These will be followed by further geotechnical studies, in addition to recent works conducted on proposed sites for Lilac Solutions’ direct lithium extraction demonstration plant and for the future production plant.

Pleasingly, the company advised that it is well financed for the DFS and these activities. Late last year it raised ~$3.4 million through its controlled placement agreement with Acuity Capital. These funds will be used towards the Kachi DFS, further exploration, and working capital.

Novonix update.

In addition to this, the company provided an update on its work with Novonix Ltd (ASX: NVX).

The release explains that Novonix continues its test work on Lake’s high purity lithium carbonate.

If all goes to plan, this will be used together with commercial battery cathode precursor materials to form a NMC622 cathode that will then be processed into NMC622 lithium-ion batteries for testing.

Management notes that this will enable Lake and its potential customers to make direct comparisons of Lake’s lithium product’s performance in familiar battery chemistries. Initial indications are anticipated to be reported next month.

Lake’s Managing Director Steve Promnitz commented: “Lake has started 2021 on the front foot by formally launching our Kachi DFS, and ramping up engagement with investors and potential industry partners. Interest in the sector has never been stronger in environmentally responsible, direct lithium extractions.”

More reading

• Top fundie Hyperion to launch new growth ETF
• Top broker says you should buy these oversold ASX gold stocks now
• Here’s why the Rhythm (ASX:RHY) share price hit an all-time high today
• Here’s why the Newcrest (ASX:NCM) share price is underperforming
• Is the JB Hi-Fi (ASX:JBH) share price overvalued now?

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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