During the first quarter of 2022, the S&P/ASX 200 Index (ASX: XJO) managed to carve out a small gain despite the high level of market volatility. Over the period, the benchmark index rose 0.7% to 7,499.6 points.
One area of the market that thoroughly outperformed the ASX 200 index was the lithium sector. Thanks to sky high prices, a number of lithium stocks recorded very strong gains.
Here's why these were the best performing lithium stocks on the All Ordinaries during the quarter:
Core Lithium Ltd (ASX: CXO)
The Core Lithium share price was the best performing lithium stock during the quarter with a whopping 119% gain. The main catalyst for this was the announcement of a binding agreement with electric vehicle giant Tesla. The two parties have signed an agreement for the supply of 110,000 tonnes of lithium spodumene concentrate across a four-year period from Core's Finniss Lithium Project near Darwin. In addition, drilling results from the Carlton deposit of the project got investors excited. Management advised that eight of the nine holes intersected spodumene bearing pegmatite mineralisation. It expects this to underpin an upgrade to the mineral resource of the project.
AVZ Minerals Ltd (ASX: AVZ)
The AVZ Minerals share price was some way behind as the next best performing lithium stock. It recorded a quarterly gain of 59.4%. Its shares were given a boost by their addition in the illustrious ASX 200 index. In addition, there were a number of positive developments at its Manono Lithium and Tin Project in the Democratic Republic of the Congo. Investors appear to believe these developments and sky high lithium prices will make the impending final investment decision on the project an easy one for management.
Calidus Resources Ltd (ASX: CAI)
The Calidus Resources share price was on form and raced 52% during the quarter. While Calidus has made progress with its gold operation this year and expects production to commence imminently, it appears to have been its lithium potential that has got investors most excited. In March, Pirra Lithium, which is 50:50 owned by Calidus and Haoma Mining, identified a "substantial lithium-bearing pegmatite with a mapped strike length of more than 1km" in the Eastern Pilbara. Management commented: "It is already clear that we are in the early stages of an exciting lithium discovery with both scale and strong grades."
Piedmont Lithium Inc (ASX: PLL)
The Piedmont Lithium share price was a strong performer and charged 27% higher over the period. This was driven largely by the release of its 2022 development plans. The lithium stock revealed that it expects to double its US lithium hydroxide production to 60,000 tonnes per year. All in all, the company plans to produce or have offtake rights to an estimated 500,000 tonnes per year of SC6 production in the future. Management believes this leaves the US-based lithium miner well-placed to meet demand for the white metal in North America.
