Missed out on the biggest trend of 2021?
Three Stocks That Could Make a ‘Lithium Comeback’
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The smart way to invest in lithium in 2023 and beyond. The strategies that netted investors substantial gains in 2021 and 2022 won’t work this time around. Ryan reveals a smarter yet overlooked approach that he believes you should use instead.
A stock that JP Morgan dubs as ‘a one-stop stock’ for EVs. Why? Because it currently produces three other EV battery metals besides lithium! With rising EV demand, you have far greater upside potential than betting on pure lithium stocks.
Why this mining powerhouse is your best bet for capitalising on the lithium surge right now. It’s currently one of the top five largest lithium producers globally, making it a smart buy right now. But with plans to triple its production by 2026, it’s also a potential long-term play.
Probably one of the most reliable lithium producers on the ASX. With a long, stable history as a lithium producer, it’s an attractive pick for investors. And with a potential 2024 net profit of $1.4 billion, it might also be a potentially lucrative one.
Dear Reader,
Is it too late for you to earn big money from the lithium boom?
It might seem that way.
Three of the biggest lithium stock winners from 2021 are now in an apparent free fall.
But we believe the lithium boom is far from over.
In fact, evidence suggests it’s stronger than ever.
Prices of lithium-rich spodumene were still 400% higher in early 2023 than they were in 2021.
The Australian Financial Review predicts ‘lithium stocks mania to extend into 2024’ as EV demand soars and lithium supply deficits to last until 2030.
And more importantly, the momentum on EVs — lithium’s primary demand driver — is starting to accelerate, as you can see below:
Clearly, the lithium story holds in 2023…and there are still great opportunities in the sector.
But if that’s the case, why are many lithium stocks in the red right now?
Well, here’s the thing…
Back then, realising big gains from lithium stocks was relatively easy.
The surging tide of interest in lithium lifted plenty of mining stocks with it. In fact, 80% of the performing stocks on the All Ordinaries [XAO] were lithium stocks.
Let me put it this way:
If you were to pick at random any stock with lithium to its name, there’s a good chance you would’ve seen decent gains.
But that strategy WON’T work this time around.
Because while lithium as a whole is still on a surge, not all lithium stocks will continue to rise with it.
As we showed earlier, most of the hot lithium stocks in 2021 are now way off their highs.
The big, easy gains have been made.
If you want to profit from the anticipated lithium wave in the next few years, you need to be smarter — and pickier.
Here’s what we think you should do that most investors overlook:
What many investors don’t realise is that most of the hot lithium stocks of 2023 haven’t sold a single ounce of lithium!
They’re all junior miners who aren’t set to produce for a couple of years.
For instance, Lake Resources (a 1,000% gainer in the last boom) won’t become operational until 2027.
Piedmont Lithium [ASX:PLL], another 2022 high-flyer, will start producing only in 2027.
And, according to its latest filing with the SEC, PLL recorded a $125 million deficit and will continue to operate in the red ‘until commercial production is achieved.’
Here’s the problem:
According to the Resources and Energy report by the Department of Industry, lithium production will hit 1,167,000 tonnes in 2024…while lithium demand will reach 1,169,000 tonnes.
That’s a deficit of only 2,000 tonnes by next year!
So, there’s a good chance that by the time these mines become operational, the lithium demand could’ve slowed down or stabilised.
Instead of investing in these junior miners…
Small-cap expert Ryan Dinse believes a handful of lithium producers should be on your watchlist.
He reveals three of them in his report:
Of course, like any mining venture, lithium miners are a risky proposition.
But these are relatively stable mining companies…with the track record, financing, experience, and management team to back them up.
And most importantly, they can ship lithium now.
In fact, one of these stocks is set to produce 90,000 tonnes of lithium in 2023, putting it in the top five largest lithium producers globally.
If you want the opportunity to capitalise on the rising lithium prices right now, we suggest taking a good look at these three stocks.
To get a free copy of ‘Three Overlooked ASX Lithium Stocks for 2023’, subscribe to Fat Tail Daily by entering your email address and hitting ‘Subscribe Now’.
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We’re confident in saying this because it isn’t the first time Ryan Dinse has predicted a lithium boom.
He wrote a report way back in January 2020, noting that ‘it could be time to look at lithium stocks once again’.
History shows he was spot on.
Also, look at what’s happening in the EV market.
The US plans to spend US$4 trillion building an EV charging network across the country.
China — the world’s biggest auto market — targets 20% of its auto sales to be EVs by 2025.
And Bloomberg estimates that 2023 is the year when EVs will finally become cost-competitive with conventional gas vehicles.
All of that could spell a pivotal year for EVs, battery tech and lithium stocks.
So if you’re a smart investor who wants the opportunity to capitalise on the anticipated boom…while it’s still on a roll…
Download Ryan’s FREE report below and access his three stock picks.
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Cheers,
 |
Ryan Dinse,
Editor, Fat Tail Daily
All advice is general advice and has not taken into account your personal circumstances.
Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.
Calculating Your Future Returns: The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in this report are forecasts and may not be a reliable indicator of future results. Any potential gains in this do not include taxes, brokerage commissions, or associated fees. Please seek independent financial advice regarding your particular situation. Investments in foreign companies involve risk and may not be suitable for all investors. Specifically, changes in the rates of exchange between currencies may cause a divergence between your nominal gain and your currency-converted gain, making it possible to lose money once your total return is adjusted for currency.