How risky is buying ASX lithium shares right now?

MotleyFool07-18

Investing in ASX lithium shares certainly has not come without its fair share of risks. Most lithium producers and explorers rocketed higher in 2022 and into 2023 as the price of the battery critical ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow risky is buying ASX lithium shares right now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-18 02:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com.au/2024/07/18/how-risky-is-buying-asx-lithium-shares-right-now/><strong>MotleyFool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Investing in ASX lithium shares certainly has not come without its fair share of risks.\nMost lithium producers and explorers rocketed higher in 2022 and into 2023 as the price of the battery critical ...</p>\n\n<a href=\"https://www.fool.com.au/2024/07/18/how-risky-is-buying-asx-lithium-shares-right-now/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7504","symbol_name":"锂钴概念","start_time":0,"source_url":"https://www.fool.com.au/2024/07/18/how-risky-is-buying-asx-lithium-shares-right-now/","article_id":"2452193357","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2452193357","pubTimestamp":1721239200,"sourceInfo":{"source_id":"motleyfoolau_stock","name":"MotleyFool"},"weMediaInfo":null,"summary":"Investing in ASX lithium shares certainly has not come without its fair share of risks.Most lithium producers and explorers rocketed higher in 2022 and into 2023 as the price of the battery critical metal they dig from the ground hit all-time highs.But with demand growth slowing and supply growth ramping up, that trend reversed resulting in an 85% collapse in global lithium prices from those record prices.While prices have somewhat stabilised in 2023, many of the ASX lithium shares with higher costs have found themselves operating at a loss. Some have gone so far as to suspend production, awaiting the return of better market prices.As for the risk of investing in the lithium miners in the past year, here's how these top-name stocks have performed over 12 months:. I think those figures speak to the formidable risks on investing in ASX lithium shares.However, the fund managers are more optimistic about the outlook ofArcadium Lithium  after the ASX lithium share plunged 26% in June.Arcadi","collect":0,"end_time":0,"defaultTopTitle":"fool.com.au","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7504":"锂钴概念","CXO.AU":"CORE LITHIUM LTD","LKE.AU":"LAKE RESOURCES NL","LRS.AU":"LATIN RESOURCES LTD","BK7509":"中概股","SYA.AU":"SAYONA MINING LTD","BK7095":"多种金属与采矿","PLS.AU":"PILBARA MINERALS LTD","BK7036":"特种化学制品","LTM.AU":"Arcadium Lithium plc","BK7507":"资源股","BK7506":"金矿股","LTR.AU":"LIONTOWN RESOURCES LTD","PMT.AU":"Patriot Battery Metals Inc.","IGO.AU":"IGO LTD","MIN.AU":"MINERAL RESOURCES LTD"},"translate_title":"现在购买ASX lithium股票的风险有多大？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CXO.AU":1,"IGO.AU":1,"LKE.AU":1,"LRS.AU":1,"LTM.AU":1,"LTR.AU":1,"MIN.AU":1,"PLS.AU":1,"PMT.AU":1,"SYA.AU":1},"content_text":"Investing in ASX lithium shares certainly has not come without its fair share of risks.\nMost lithium producers and explorers rocketed higher in 2022 and into 2023 as the price of the battery critical metal they dig from the ground hit all-time highs.\nBut with demand growth slowing and supply growth ramping up, that trend reversed resulting in an 85% collapse in global lithium prices from those record prices.\nWhile prices have somewhat stabilised in 2023, many of the ASX lithium shares with higher costs have found themselves operating at a loss. Some have gone so far as to suspend production, awaiting the return of better market prices.\nAs for the risk of investing in the lithium miners in the past year, here's how these top-name stocks have performed over 12 months:\n\nPilbara Minerals Ltd (ASX: PLS) shares are down 40%\nCore Lithium Ltd (ASX: CXO) shares are down 87%\nIGO Ltd (ASX: IGO) shares are down 61%\nLiontown Resources Ltd (ASX: LTR) shares are down 66%\nSayona Mining Ltd (ASX: SYA) shares are down 82%\nLake Resources (ASX: LKE) shares are down 87%\nLatin Resources Ltd (ASX: LRS) are down 51%\nPatriot Battery Metals Inc (ASX: PMT) are down 67%\nMineral Resources Ltd (ASX: MIN) are down 20%\n\nI think those figures speak to the formidable risks on investing in ASX lithium shares.\nAt least for the year just past.\nBut what about the year ahead?\nAre ASX lithium shares still very risky?\nTo be clear, every investment comes with its own unique risks.\nAs for the particular risk of investing in ASX lithium shares, we'll defer to Blackwattle Investment Partners.\nHere's what the fund managers reported on Blackwattle's own investments and outlook for the Aussie lithium miners.\nIn June, the Blackwattle Small Cap Quality Fund lost ground on its Latin Resources and Patriot Battery Metals holdings. Blackwattle noted that the lithium commodity price continued to follow a volatile trading pattern over the month.\nAs for those risks, the fund manager added:\n\nPerversely, when considering investments in the resources sector, the risk is the lowest when commodity prices are falling toward the lower end of the cost curve for mining companies with tier-one assets.\nAt current spodumene lithium prices, few hard rock miners are generating much free cash flow today. As such, we continue to maintain modestly sized holdings in the lithium sector. In our view projects with superior economics like Latin Resources and Patriot Metals are well placed to ride out near-term volatility in the lithium price.\n\nNoting that it will take some time for the supply and demand dynamics in lithium markets to balance, Blackwattle said, \"At current prices, new projects, such as Pilbara Minerals' P2000, don't stack up.\"\nHowever, the fund managers are more optimistic about the outlook of Arcadium Lithium (ASX: LTM) after the ASX lithium share plunged 26% in June.\nArcadium, as you may know, started trading on the ASX in December, formed from the merger of the previously ASX-listed Allkem and US-listed Livent.\nAccording to Blackwattle:\n\nThe merger has created a quality, vertically integrated global lithium chemicals producer with a significant synergy opportunity & production growth upside.\nWe see significant upside for LTM outside any moves from the lithium price, as the new business looks to maximise the merger potential through synergies, driving cost & capex reductions as well as improved pricing.\nWe view a potential rebound in lithium prices at some point as option value.\n\nFoolish takeaway\nSo, is investing in ASX lithium shares right now risky?\nYou bet.\nBut could buying some of the beaten-down, low-cost producers also pay off handsomely over the longer run?\nI certainly think it could.\nJust don't invest more than you're prepared to lose.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2452193357"}