Weekly | Is $PLS 30% Five-Day Rally a Sign of a Lithium Comeback?

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,634.50 on Friday, down 1.79% in the past 5 days.

1. $PILBARA MINERALS LTD(PLS.AU)$ +30.38%

• The price of Lithium has risen significantly, increasing by about 21% over the past month to approximately US$1,001 per tonne, directly boosting the company's revenue prospects .

• The company's latest quarterly results showed exceptional cost control, with mining costs falling 13% and a 20% increase in the average realised sales price, leading to a 30% jump in quarterly revenue .

• China's new royalty framework for lithium has increased production costs for local miners, lifting the global cost floor for lithium and benefiting established Australian spodumene producers like Pilbara Minerals .

• Growing global demand for batteries, particularly from the energy storage sector which is expected to see demand surge by 45% in 2026, is creating a more optimistic long-term outlook for lithium .

2. $MINERAL RESOURCES LTD(MIN.AU)$ +19.22%

• The company signed a $1.2 billion (US$765 million) agreement to sell a 30% stake in its lithium assets to South Korea's POSCO, a deal that was viewed very positively by the market and significantly strengthened its balance sheet .

• The company's Onslow iron ore project achieved a significant de-risking milestone by consistently hitting its nameplate production capacity, which is expected to generate substantial annual operating profit and support further deleveraging .

• Mineral Resources Ltd's share price has surged over 100% in six months, with potential for further growth highlighted by experts.

3. $NORTHERN STAR RESOURCES LTD(NST.AU)$ +8.87%

• The Australian gold sector experienced a broad uplift, with Northern Star's shares rising as the gold price surged, partly due to a weaker US dollar and positive market sentiment . This rally was also fueled by expectations of U.S. Federal Reserve interest rate cuts and sustained central bank purchasing .

• The company is involved in ongoing exploration, including through its Egina Joint Venture. Positive high-grade drilling results from partners like Novo Resources in the same Pilbara region highlight the potential of the assets Northern Star is exploring .

4. $EVOLUTION MINING LTD(EVN.AU)$ +8.54%

• The Australian gold sector experienced a broad uplift, with Evolution Mining's shares rising as the gold price surged . This rally was fueled by market expectations of U.S. Federal Reserve interest rate cuts .

• The Australian share market posted solid gains amid growing expectations that the record-breaking U.S. government shutdown would end soon, lifting overall investor confidence and risk appetite .

5. $NEWMONT CORP-CDI(NEM.AU)$ +7.89%

• The price of gold surged to record highs, driven by a weaker U.S. dollar and investor concerns over a potential government shutdown, which boosted the entire gold mining sector .

• Several analysts, including Scotiabank and UBS Group, raised their price targets on the stock following the strong earnings report, contributing to positive market sentiment .

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