3 bargain lithium stocks I'm keen on for April

Given the commercial uses for lithium, demand for lithium-related stocks has been growing over the past few years. Even though shares in this area have risen in value when I look at long-term performance, there are still some stocks that I feel are very good value. When I consider what this sector could be worth in the next decade, here are some ideas I like and am considering.

A fully-funded mine project

Kodal Minerals (LSE:KOD) is a lithium exploration and development company focused on projects in West Africa.

The share price is up 34% over the past year. It caught my attention recently due to securing £117.5m in funding from a Chinese business. With £65m allocated to the flagship Bougouni lithium project, it means that costs are covered.

This takes away a key risk for many exploration projects, which is that money can run out before it’s finished. There’s still the obvious risk that lithium can’t be viably mined from the project for some unknown reason. But I feel the stock is a bargain because the market cap is only GBP63m at present.

The life-of-mine forecast revenue is GBP1.62bn!

A positive ESG contender

Another UK-listed lithium company is CleanTech Lithium (LSE:CTL). It’s a small business like Kodal, with a market cap of GBP62m. The share price has jumped by 52% over the past year.

It currently has three projects ongoing in Chile, which is seen as a good source of lithium for the future. It also attracts ESG investors, given that it states that it plans “to be the greenest lithium supplier to the EV market.” Net zero commitments are great, but if the company can’t monetise the projects, it won’t count for much.

Another concern I have is that the four largest shareholders alone hold almost 39% of the total shares. I think there’s value here when comparing the current company size versus the net present value of some of the projects. For example, the Laguna Verde value is estimated to be in the billions alone.

If one takes off, there’s clear room for the stock to outperform.

Taking advantage of a fall

Finally, a hot lithium stock getting attention right now is Atlantic Lithium (LSE:ALL). Some would say it’s a bargain, down 48% in the past year. Most of this fall came recently due to a negative short seller report, criticising the company.

I feel that there isn’t much basis for some of the accusations and that the share price should shake it off over coming months and years. The business’s flagship project is Ghana’s first lithium-producing mine, which has good potential. A report I saw estimated the life-of-mine revenue at GBP3.9bn.

Granted, there are plenty of hurdles to overcome before the cash comes rolling in, but it certainly has caught my eye.

Given the high-risk nature of these type of stocks, I’m keen to invest but will only do so with a small amount of money.

Tags:

ask listed on couponmatrix.ukbattersea-park-zoo listed on couponmatrix.ukhargroves-cycles listed on couponmatrix.ukiconic-lights listed on couponmatrix.ukcurrys-partmaster listed on couponmatrix.uksock-shop listed on couponmatrix.uk
ask listed on couponmatrix.ukIf you’re looking to enjoy food you know you’ll love in a buzzing atmosphere, ASK Italian has the menu and restaurants for you. Featuring delicious Italian pastas, thin crust pizzas, salads and more, ASK will ensure your meal is one to remember. Don't forget to make use of one of our ASK vouchers and your family will thank you for reducing the bill! With restaurants in locations all over the UK, you’re bound to find an ASK nearby.
battersea-park-zoo listed on couponmatrix.ukHome to cute wildcats and terrifying tarantulas alike, Battersea Park Zoo provides a beautiful bastion to endangered animals of all varieties. Whether you come to catch a glimpse of the iguanas or simply to take a breather from the busy London streets, a Battersea Park discount code is a surefire way to enjoy some exotic animals without breaking the bank. With dozens of weird and wonderful residents to light up your day, there’s never a dull moment or mammal when visiting Battersea Park Zoo.
hargroves-cycles listed on couponmatrix.ukHargroves are a household name among the cycling community, thanks to their unbeatable one-stop service that lets you choose, order and receive a hand-built, fully set-up bike of any type. This kind of specialist service may sound like something that'll hit your wallet hard, but the Hargroves Cycles discount code will raise your spending power up a few gears, making it easy to get your hands on a professional-standard bike that'll give you year upon year of trouble-free, memorable rides.
iconic-lights listed on couponmatrix.ukWant to upgrade your space? Lighting is the crucial finishing touch for any room, and when you shop with Iconic Lights, you’ll find stylish picks at affordable prices. Create warmth, highlight room accents and create zones in an open-plan living space with well-placed lamps and wall lights. With an Iconic Lights discount code from us, you can save big on a new addition to your home - shop the range and elevate your space today!
currys-partmaster listed on couponmatrix.ukWith more than one million parts and accessories in stock for your convenience, Partmaster is the UK’s leading supplier of electronic spares. If your home appliance, computer or gadget is in need of repair, don't fork out for a replacement - make the most of a Partmaster discount code to save on affordable parts to get you back up and running.
sock-shop listed on couponmatrix.ukGive your feet, ankles and calves a nice warm cotton hug with the huge range of socks available at Sock Shop. With everything you could need to keep your feet toasty all year round, use your Sock Shop discount code for money off the smartest suit socks or naughty knee-highs. With self-confessed “sock nerds” founding the store, you can rest assured your feet are in safe hands, whatever the occasion.