Close menu




August 20th, 2021 | 13:36 CEST

Standard Lithium, Aztec Minerals, Orocobre - Take advantage of trading opportunities!

  • Gold
Photo credits: pixabay.com

Raw materials are a prerequisite for any kind of production. The more there is produced, the more raw materials are needed. Precious metals are also suitable as an investment. Historically, they are always in demand when inflation rises. Commodity prices are thus subject to many factors. Some of which can neutralize each other, and some of which can reinforce each other. For example, the persistently high inflation of over 5% in the USA speaks for an increasing flight of investors into precious metals and, thus, rising commodity prices. While at the same time, the semiconductor crisis, which is currently occurring, is causing production cutbacks and idle assembly lines. That means that fewer raw materials are needed, which in turn puts pressure on prices. What is the best strategy now and which share has the greatest potential?

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: STANDARD LITHIUM LTD | CA8536061010 , AZTEC MINERALS CORP. | CA0548271000 , OROCOBRE LTD | AU000000ORE0

Table of contents:


    Standard Lithium Ltd. - Price roller coaster

    A good example of the mixed opinion of investors on commodity price development is the share price performance of the Canadian Company Standard Lithium. Investors currently seem to be uncertain that the demand for lithium will decrease due to factors such as the chip crisis and falling demand for battery-powered end devices (laptops, etc.). In addition, the (temporary) loss of one of the largest mining areas for lithium in Afghanistan is a burden. On the other hand, the lithium price is likely to rise due to the high demand in the wake of the energy and mobility transition.

    The share price fluctuated very strongly in the last few days. From a level of around CAD 10, the stock dropped to CAD 7.40 in a few days. It is now trading at just under CAD 9, around 15% below its all-time high. It should not be forgotten that Standard Lithium is currently not yet extracting lithium from the ground. Instead, the Company is working on its first demonstration plant in the US state of Arkansas. Here, its proprietary LiSTR technology will extract lithium directly from brine without the need for water evaporation. Both from a technical point of view and for dealing with the capital markets, the Company recently secured the expertise of ex-BASF manager Dr. Volker Berl.

    As the semiconductor crisis comes to an end, demand for lithium should also pick up strongly again. Although research is currently being conducted into alternative battery concepts (solid-state accumulators, etc.), lithium will remain the most important raw material for producing efficient energy storage systems in the foreseeable future.

    Aztec Minerals - Phase 2 of the drilling program starts in Q4

    Canadian junior explorer Aztec Minerals recently announced exciting news. The Vancouver-based company is committed to discovering large, polymetallic mineral deposits in the Americas. The Canadians have reported successful results from the first phase of the surface exploration program for its Cervantes core asset in Sonora, Mexico, which targets prospective porphyry gold-copper deposits. The project, which is operated as a joint venture with Kootenay Silver Inc. (Aztec's share: 65%), is located near the operating mines of Alamos Gold and Agnico Eagle.

    The Company announced that additional gold-copper-molybdenum soil and rock geochemical anomalies have been discovered in the Estrella, Brazil, California Norte and Estrella Norte areas. In addition, grades of up to 21.3 g/t gold have been found in various rock chip samples. Based on these results, the JV partners have announced the implementation of a Phase 2 RC (reverse circulation) drilling program. The drill program of up to 5,000m is expected to commence in the fourth quarter of 2021. In doing so, the JV partners will immediately begin the process of securing financing.

    Having already announced the successful completion of its 20-hole drill program at its historic Tombstone property in Arizona in July, this new campaign could bring the Company a good deal closer to its goal of becoming an exciting acquisition candidate for a major player.

    Orocobre Limited - Merger will now be implemented

    The Australian Orocobre Limited, headquartered in Brisbane, is another company that is struggling, albeit to a much lesser extent, with investors' uncertainty regarding the price development for the raw material lithium. While the share price reached a new all-time high of AUD 9.97 just under a week ago, it has fallen back somewhat in recent days. And this despite positive news.

    Thus, the Company, one of the world's most important lithium producers, received the green light last Friday for its merger plans with Galaxy Resources, which were already published in April. Already at the close of trading on Monday, the share swap began for their shareholders. For each Galaxy share, there are 0.569 share certificates of Orocobre. The exchange is expected to be completed on August 25. On that day, Orocobre also plans to publish its financial results for fiscal 2020/2021, which ended June 30. Regular trading in the new Orocobre shares will then begin on August 26. Analysts are formulating price targets for the stock of up to AUD 11.00.


    Lithium shares are currently under pressure. At the same time, the long-term scenario should not have changed. For the foreseeable future, lithium will remain one of the most important raw materials for the energy transition and electromobility. Therefore, an investment in an established producer like Orocobre should be associated with low risk. More speculative are the shares of Standard Lithium. The best risk-reward profile is certainly the share of Aztec Minerals. The Company has good projects and excellent results and is a potential takeover target with a market capitalization of about CAD 17 million.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Carsten Mainitz on June 29th, 2022 | 10:06 CEST

    BASF, Globex Mining, Barrick Gold - Stock pickers, beware!

    • Gold
    • Commodities
    • chemicals

    Price increases, inflation, rising interest rates and geopolitical risks - As an investor, one can get nervous. Despite all the challenges and uncertainties, depressed stock price levels offer an inviting risk-reward ratio. The big picture continues to favour commodity investments. Potential is not only to be found in the top dogs. Looking at the second tier is often more rewarding than one might think.

    Read

    Commented by Nico Popp on June 28th, 2022 | 11:47 CEST

    What comes after inflation: BYD, Desert Gold, Barrick Gold

    • Gold
    • Electromobility
    • Inflation

    The course of time cannot be stopped. A resourceful investor should try to find something good in every development. That is particularly easy with green trends such as renewable energy and e-mobility. But even the current crisis holds long-term potential. Below, we outline what that potential is and how investors can position themselves right now.

    Read

    Commented by André Will-Laudien on June 27th, 2022 | 11:08 CEST

    The solution is here: BASF, Nordex, Barsele Minerals - Energy disaster across Europe

    • renewableenergies
    • Gold

    Europe's energy supply cannot be managed from its own resources; many components of the energy mix have been imported for years. However, Germany is one of the leaders in the field of alternative energies. In the first four months of 2022, 174 TWh of electricity was generated here in Germany. The share of renewable energies in electricity generation was a high 52%. With 90 TWh produced, solar, wind & co. are the most important sources. The picture is rather gloomy in the case of fossil primary energy sources, which are important for industry. After the end of hard coal mining in 2019, Germany as an industrial location is 95% dependent on imports of crude oil and natural gas from abroad, 40% of which have so far come from Russia. A disaster from the current perspective. Which shares are worth watching out for now?

    Read