Even as the price of lithium fell and small-cap stock prices dipped on the ASX, miners have kept reaping eye-watering profits, typified in the wake of the global energy transition.
For instance, Western Australian lithium monolith Albermarle has shown mega earnings of $3.2 billion, towering over last year’s respectable $224.9 million for its freakishly large Greenbushes Lithium Mine in the state’s south.
And in a time of relative market softness, a US$23.44 billion market cap chemical producer had tried to up its stake in Australian lithium, presenting a takeover bid to Liontown, who scoffed at the notion and promptly rebuked the US giant’s opportunistic lowball.
Liontown shares amid a swarm of Aussie lithium small cappers shot up in the wake, with Albermarle’s 1322.85% increase supporting the notion that Australian lithium is not only as profitable as ever but primed to keep gaining momentum in accord with ever-rising demand.
While some in the market saw an excess of lithium projects joining the fray to capitalise on all-time high prices, the forecast demand has continued to outpace discoveries— the latest forecasts predict a fivefold growth in demand by 2030, outstripping past estimates by 64 per cent and set to cause a supply deficit — driving higher lithium prices for longer.
It is a tailwind for a sector that hardly needs one, the list of the world’s most valuable mines excludes lithium operations to remain attractive, but profits like these dawning after takeover bids is just another sign from the big players that exploration assets are as crucial and lucrative as they ever were.
