Prospect, “one of the cheapest lithium producers on the planet”

Prospect, "one of the cheapest lithium producers on the planet"

Date of Report 03/08/2021
ASX: PSC

Price A$0.02

52 Week Range: A$0.09 - $0.34

Market Cap: A$115.05m

Sector: Mining

Every second week we invite a leading fund manager to present at The Insider: Meet the Fund Manager. Shaun Cartwright from Viriathus Australia selected Prospect Resources (ASX: PSC) as one of his 3 favourite stocks as he believes they are poised to benefit from surging lithium prices.

March 26th, 2021

April 28th, 2021

The Insider: Meet the Fund Manager sessions are a great way to hear directly from leading funds managers. They share their approach to investing, favourite companies and their market view for the year ahead.

The Insider: Meet the CEO sessions feature a selection of company leaders who provide a succinct overview of big things their companies are doing. 

Prospect Resources is an ASX-listed battery minerals company primarily focused on lithium, with a 70% stake in the Arcadia Lithium project in Zimbabwe.

The company successfully opened its Arcadia Project pilot plan in the June quarter of this year and is on track to complete its optimised feasibility study in the next 3 months.

With battery metal prices surging to two-year highs, Viriathus Capital’s Shaun Cartwright said Prospect Resources could be a big winner.

Speaking at Reach Markets’ The Insider: Meet the Fund Manager webcast, Mr Cartwright said low-cost lithium producers like Prospect will be able to “command whatever price they want” for the sought-after metal.

Although Prospect produces their lithium from hard rock, a process which is typically more expensive, the company’s costs are reduced by selling petalite, a by-product from the production process and a key ingredient in ceramics and glass.

According to Prospect’s Managing Direct, Sam Hossack, utilising both materials creates a “massive reduction” in costs.

To view more videos from Shaun Cartwright’s Meet the Fund Manager session, click here or to view the full Insider – Meet the CEO’s Session, click here.

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