Why the Galan Lithium (ASX:GLN) share price is up 50% in a month

The Galan Lithium Ltd (ASX: GLN) share price has been soaring lately. Let's take a look at what's been happening for the company.

| More on:
A mining worker wearing a hard hat, orange high vis vest and blue long-sleeved shirt raises his fists in celebration with an excited expression on his face

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Galan Lithium Ltd (ASX: GLN) shares have been soaring lately, surging by 50% over the past month.

On 18 March, Galan Lithium entered a trading halt. At the time, the company's shares were swapping hands at 47 cents each. By today's market close, the Galan share price was trading at 73.5 cents after having risen 6.5% today.

So, what's been driving the Galan Lithium share price since 18 March? Let's take a look.

Lithium, lithium and more lithium

Galan Lithium broke its trading halt on 22 March with exciting news, leading its share price to close 12.8% higher than the previous session.

Just prior to the market's open on 22 March, the company announced test results had found the brine evaporation process at its Hombre Muerto West (HMW) project was capable of producing 25% more lithium than was previously predicted.

According to the release, HMW's lithium chloride concentrate increased to 6% lithium. This represented a significant increase from the original measure of the process which found 4.8% lithium.

HMW is located in Argentina, in the area known as the South America Lithium Triangle. The HMW project has a low carbon footprint with comparable results to other lithium miners in the area.

Galan Lithium stated it's still running tests to optimise lithium chloride solutions to deliver the best chemical solution in the shortest amount of time.

What else has been happening for Galan?

After the HMW news in March, we hadn't heard anything more from Galan.

That was until this morning when the company announced it had finished a review of historical CSIRO data and had found improved prospects at its Greenbushes South Lithium Project.

A CSIRO study from 1987 defined geochemical anomalies with the laterite soils across the Greenbushes region. Galan Lithium stated this study confirms the feasibility to explore for a concealed deposit of mineralised Li-Sn-Ta pegmatites – a rock type that may host spodumene.

Now, Galan is repeating some of the soil sampling done in the original study to validate the results and plan its next move at the project.

The Greenbushes South Lithium Project is located around 3 kilometres south of the Greenbushes Lithium Mine. The Greenbushes Lithium Mine is the largest hard-rock lithium mine in the world.

Galan Lithium share price snapshot

Galan Lithium is having a cracking time on the ASX this year. At the time of writing, the company's share price is around 90% higher than it was at the beginning of 2021.

It's also up by almost 360% over the last 12 months.

The company has a market capitalisation of around $165 million, with approximately 240 million shares outstanding.

Should you invest $1,000 in Berkshire Hathaway right now?

Before you buy Berkshire Hathaway shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

More on Resources Shares

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Did you catch what happened with the big 3 ASX 200 mining stocks in April?

BHP, Rio Tinto, and Fortescue all reported their latest mining results in April.

Read more »

Miner looking at a tablet.
Resources Shares

After its earnings result, what's Macquarie's price target on Fortescue shares?

Let’s dig into what Macquarie thinks of Fortescue after its quarterly update.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

The Mineral Resources share price is down 72% in a year. Time to pounce?

Two top experts ran their slide rules over Mineral Resources shares. Here’s what they found.

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price shoots 15% higher on third-quarter report

The ASX 200 iron ore and lithium giant has released its 3Q FY25 activities report.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why Macquarie says this ASX 200 mining stock could rocket 67% in a year

Macquarie forecasts a big potential rebound for this diversified ASX 200 miner.

Read more »

Female miner smiling at a mine site.
Resources Shares

3 reasons why the Fortescue share price could still be a buy

Here’s why I view Fortescue as an opportunity.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Here's the latest earnings forecast out to 2029 for Rio Tinto shares

Let’s unearth what this mining giant is predicted to achieve.

Read more »

Female miner smiling in front of a mining vehicle.
Resources Shares

Is the BHP share price a buy? Here's UBS' view

Let’s dig into what an expert thinks of this mining giant.

Read more »