Here's why the Latin Resources share price is on ice today

Latin Resources shares will be on close watch when the trading halt is lifted…

| More on:
A dollar sign embedded in ice, indicating a share price freeze or trading halt

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

Key points

  • Latin Resources has placed its shares in a trading halt pending an announcement in relation to a proposed capital raise 
  • A statement is expected to be made on or before Thursday 14 April 
  • The company’s shares have accelerated by 340% in a month as the price of lithium accelerates 

The Latin Resources Ltd (ASX: LRS) share price won't be going anywhere on Tuesday.

This comes as the company requested that its shares be placed in a trading halt.

As such, the lithium explorer's shares are frozen at 18.5 cents apiece.

Why is the Latin Resources share price halted?

Prior to the market opening, management requested that the Latin Resources share price be halted while it prepares an announcement.

According to the release, the company is planning to make an announcement in relation to a capital raising.

It's worth noting that Latin Resources shares have powered ahead to astonishing levels. In a month, its shares are up 340%. It appears that the company is looking to take advantage of the share price acceleration to fund its lithium projects.

Latin Resources has requested that the trading halt remain in place until Thursday 14 April or following the release of the announcement, whichever comes first.

More on Latin Resources and lithium

Australian-based mineral exploration company, Latin Resources has projects in both Australia and South America.

In Australia, Latin Resources operates the Cloud Nine Halloysite-Kaolin deposit located 300 kilometres east of Perth in Western Australia.

On the other hand, the company is developing two lithium projects situated in Brazil and the other in Argentina.

Almost all everyday technology such as mobile phones, laptops, cameras, toys, and clocks are widely used from lithium.

However, one of the biggest markets for the battery making ingredient is electric vehicles. The reason for this is the huge difference in battery sizes. As an example, a Tesla car is fuelled by up to 90 kWh of lithium-ion compared to 5-6 kWh for an iPhone 11 that would last an entire year.

Lithium is mainly sourced from either spodumene or brine. Australia is home to the majority of the hard rock (spodumene) mines, while brine production is concentrated mainly in South America, particularly Chile and Argentina.

In contrast, it's about 3-5 years for spodumene mines to go into production, whereas brine can take up to 7 years.

With the lithium revolution continuing to keep pace, Latin Resources is looking to get in on the action.

About the Latin Resources share price

Over the past 12 months, Latin Resources shares have surged by 260% following strong investor hype in the lithium space.

Although, when looking since the start of the year, its shares have recorded a wild uptrend, gaining more than 530%.

Based on valuation grounds, Latin Resources has a market capitalisation of roughly $305.1 million, with approximately 1.65 billion shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Female miner smiling at a mine site.
Resources Shares

Up 60% this year, this ASX 200 mining stock just smashed production records

Production surge headlines quarterly results.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Resources Shares

After lifting its price target, Macquarie now expects 36% upside from this ASX mining stock

The precious metals producer released better-than-expected production guidance.

Read more »

A miner in a hardhat and high visibility clothing makes a thumbs up symbol.
Resources Shares

4 reasons to buy Rio Tinto shares today

A leading expert forecasts strong growth potential for Rio Tinto shares.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Why Macquarie expects this ASX All Ords copper stock could surge 38%

With costs coming in below expectations, this ASX All Ords copper stock could rocket higher over the coming months.

Read more »

Iron ore price Vale dam collapse ASX shares iron ore, iron ore australia, iron ore price, commodity price,
Resources Shares

Major miners up as China announces new mega project

Can a new mega-dam absorb iron ore oversupply?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Resources Shares

3 reasons why the BHP share price could be a buy

Here are my optimistic thoughts on BHP.

Read more »

mining asx shares represented by miner writing report on clipboard
Resources Shares

This ASX 200 miner is ramping up copper output as prices reach all-time highs

Copper production leads quarterly update.

Read more »