When I commenced this review to compare ASX listed companies lithium type projects and share price performance dating back to 1st June 2015, there were supposedly over 90 ASX listed companies with Lithium projects. This has now already been reduced to 86 and I still have over 30% to complete each companies Lithium projects. To be included in this review, there must be ASX released documentation stating approval on tenement licence. I shouldn’t be surprised to see some companies possibly taking advantage of “Lithium” by simply stating they are either in discussions or exploring Lithium tenements. Since this will be a long process to complete the review, I am providing an update with what has been completed to date. The review will be completed by end of November or before and will be Part 3. 11 of the 86 companies have Lithium projects but too early to know what type of Lithium they have at this stage.
As we seen from “Lithium Comparisons Part 1” Lithium Spodumene stocks have had extraordinary highs since June 1, 2015. The growth percentage has dropped since my post on 24/10/2016 from 273% to just under 262% as of close today 01/11/2016.
While there are more companies to add to the spodumene watch list, I created a watch list for Other Types Of Lithium which include Brine & Mica. There are currently 12 companies on this watch list with 3 of them also involved with spodumene. Currently the growth percentage is just over 164%. When you take away the 3 companies that also have tenements for Spodumene the Growth percentage drops from just over 164% to just under 81%. This shows significance growth difference between Lithium spodumene and Lithium Brine/Mica/Other of nearly 200%.
This clearly demonstrates that the current demand is for Lithium Spodumene by a long way. I think to be fair with the comparisons, there are more spodumene projects closer to production, including 2 projects now in production or very close to it. Where as the Brine/Mica/Other projects are mostly in exploration with the exception of Orocobre Limited.
31 ASX listed companies exploring Lithium Spodumene with a total market cap of $4,886,657,153.36 with an average market cap of $157,634,101.72. 2 of the 31 are now in production, and only 2 more close to production, and maybe another 4 will make it to production all going well in the next 3 to 5 years.
13 ASX listed companies exploring Lithium “Other Types including Brine & Mica” have a total market cap of $1,481,222,892.56 with an average market cap of $160,089,002. Only 1 is in production and 1 other possibly in next 2 years. Maybe 2 others can make it.
Lithium spodumene watch list growth is at 234.68% as of close Friday 4th November 2016. 7 of the 31 companies are in the RED, leaving 24 in the GREEN.
Lithium “Other” watch list growth is at 127.30% as of close Friday 4th November 2016. 3 of the 13 companies are in the RED, leaving 10 in the GREEN.
Please Note! 3 Companies are on both lists, with spodumene being the current priority for all 3. If you take these 3 companies off the list the growth and market cap are significantly lower, sitting at around 30% growth.
Looking at some of the market caps, there are still good potential for day traders and short term traders to make some healthy profits with these high risk stocks. Long term traders, need to be selective with their choice.
My choice of Lithium stocks are PLS, AJM, BGS, CXO, GXY, KDR, MIN, NMT, ORE, then maybe another 3 or so. This is only my opinion, do your own research. FYI, I have holdings in ORN & GPP but their risk is higher with regards to Lithium at this stage.
It looks clear that Spodumene is the preferred choice for investors at this point in time. I look forward to your feedback.
