Is it time to follow Rio Tinto's lead and buy ASX lithium shares?

MotleyFool10-18

Rio Tinto Ltd (ASX: RIO) recently launched an ambitious takeover bid for Arcadium Lithium CDI (ASX: LTM), which raises some interesting questions about ASX lithium shares. If a major player like Rio ...

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If a major player like Rio ...</p>\n\n<a href=\"https://www.fool.com.au/2024/10/18/is-it-time-to-follow-rio-tintos-lead-and-buy-asx-lithium-shares/\">Source Link</a>\n\n</div>\n","source":"motleyfoolau_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is it time to follow Rio Tinto's lead and buy ASX lithium shares?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\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\">\nIs it time to follow Rio Tinto's lead and buy ASX lithium shares?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-18 07:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com.au/2024/10/18/is-it-time-to-follow-rio-tintos-lead-and-buy-asx-lithium-shares/><strong>MotleyFool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Rio Tinto Ltd (ASX: RIO) recently launched an ambitious takeover bid for Arcadium Lithium CDI (ASX: LTM), which raises some interesting questions about ASX lithium shares. If a major player like Rio ...</p>\n\n<a href=\"https://www.fool.com.au/2024/10/18/is-it-time-to-follow-rio-tintos-lead-and-buy-asx-lithium-shares/\">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":"LTM.AU","symbol_name":"Arcadium Lithium plc","start_time":0,"source_url":"https://www.fool.com.au/2024/10/18/is-it-time-to-follow-rio-tintos-lead-and-buy-asx-lithium-shares/","article_id":"2476461227","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2476461227","pubTimestamp":1729208173,"sourceInfo":{"source_id":"motleyfoolau_stock","name":"MotleyFool"},"weMediaInfo":null,"summary":"Rio Tinto Ltd (ASX: RIO) recently launched an ambitious takeover bid for Arcadium Lithium CDI (ASX: LTM), which raises some interesting questions about ASX lithium shares. If a major player like Rio T","collect":0,"end_time":0,"defaultTopTitle":"fool.com.au","property":[],"viewcount":null,"language":"en","relate_stocks":{"LTM.AU":"Arcadium Lithium plc","BK7036":"特种化学制品","BK7507":"资源股","BK7504":"锂钴概念","PLS.AU":"PILBARA MINERALS LTD","BK7511":"ESG概念","FMG.AU":"FORTESCUE LTD","BK7095":"多种金属与采矿","LTR.AU":"LIONTOWN RESOURCES LTD","RIO.AU":"力拓","BK7129":"钢铁"},"translate_title":"是时候效仿力拓购买澳大利亚证券交易所锂股了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FMG.AU":1,"LTM.AU":1,"LTR.AU":1,"PLS.AU":1,"RIO.AU":1},"content_text":"Rio Tinto Ltd (ASX: RIO) recently launched an ambitious takeover bid for Arcadium Lithium CDI (ASX: LTM), which raises some interesting questions about ASX lithium shares. If a major player like Rio Tinto sees an opportunity with lithium stocks and is willing to pay a large premium for an ASX mining share, then it's probably worth considering whether the beaten-up sector is actually an opportunity for the long term. As a reminder, Rio Tinto's offer of US$5.85 per share has been accepted. This represented a premium of 90% to Arcadium's closing price of $3.08 per share on 4 October 2024 and 39% to Arcadium's volume-weighted average price since it was created on 4 January 2024. Rio Tinto said this takeover was a \"counter-cyclical\" expansion, increasing its exposure to a \"high-growth, attractive market at the right point in the cycle\". Consequently, broker E&P Financial has suggested that ASX lithium shares are just one deal away from a resurgence, with a shrinking number of miners to invest in, according to reporting by the Australian Financial Review. The broker mentioned Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Ltd (ASX: LTR) as opportunities. Expert views on ASX lithium share E&P Financial said that Rio Tinto's Arcadium Lithium deal could spark institutional investment in ASX lithium shares if investors speculate on the next takeover target. The AFR quoted E&P financial analyst Adam Martin, who said in a note to clients:  Rio's acquisition of Arcadium feels like bottom of the cycle M&A. We are conscious that one more M&A deal in the lithium sector would 'light up' equities given limited options to play this thematic globally.  However, Martin also warned that some ASX lithium shares were struggling to make a profit at the current spodumene/lithium price after factoring in capital expenditure growth. He said:  There is market to market downside risk to consensus earnings in the shorter term given spot lithium prices.  E&P has lowered its lithium forecasts over the next six months, according to the AFR. S&P Global Platts says the current spodumene price is approximately US$760 per tonne, and E&P Financial is forecasting the spodumene price could rise to US$850 per tonne in the second quarter of FY25 and reach US$1,000 per tonne in the third quarter. The broker suggested Pilbara Minerals and Liontown Resources as potential acquisition targets. E&P Financial said that Fortescue Ltd (ASX: FMG), due to its recent drilling activity, or another industrial company, could want to enter lithium mining. In the broker's eyes, Pilbara Minerals shares could be the best choice as a \"less risky option\". This is due to its \"strong\" balance sheet with a large cash pile, a competitive cost structure and potential for growth following a recovery of lithium prices, according to the AFR.  So, now may well be a good time to look at ASX lithium shares, if the lithium price and share prices keep rising from here.","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/2476461227"}