Latin Resources Ltd (ASX: LRS) stock is up 1.35% on Friday to 38 cents and up 29.3% over the past four weeks.
The ASX lithium stock is a rising star among the listed mineral explorers and miners today.
Indeed, Latin Resources was among the top 5 ASX All Ords stocks of FY23, with 408% share price growth.
It ranked no. 2 out of the 500 companies within the All Ords index.
As you can see in the chart above, the pivot point for Latin Resources stock was an announcement in May.
The miner released an update on its flagship Salinas Lithium Project in Brazil that sent the stock soaring.
In late June, Latin Resources confirmed the discovery of a "district scale lithium corridor" at the site.
This week, the company released its first price-sensitive announcement for FY24. That was its quarterly activities and cash flow report for the June 2023 quarter.
Released on Wednesday, investors were pleased with the Latin Resources stock rising 3.8% on the news.
Let's take a look at the details.
Image source: Getty Images
Latin Resources stock lifts on positive quarterly report
Here are the financial highlights for the June quarter:
- $10.89 million net cash spent on operating activities, such as exploration costs and wages
- $70 million net cash spent on investing activities, such as plant and equipment
- $35.97 million net cash generated from financing activities, including an institutional placement
- Cash and cash equivalents on hand at the end of the quarter $46.4 million
- 4.2 quarters of estimated funding available
The big news during the quarter was that extension drilling at Salinas "dramatically extended the footprint of the Colina Deposit". The pegmatite swarm looks to be more than 2km in length and 1km wide.
This is much larger than Latin Resources expected for the site.
The mineral resource estimate (MRE) for Colina increased by 241% during the quarter to a total of 45.2Mt at 1.32% Li2O, reported above a cut-off of 0.5% Li2O.
This upgraded resource of 45 million tonnes represents a Lithium Carbonate Equivalent of
1,477,000 tonnes.
Almost 40,000 metres of drilling has been completed at the project to date, including 26,000 metres of the planned 65,000 metres in the company's 2023 budget.
The updated MRE reflects higher lithium tonnage and grade with 67%, providing strong support for a positive Preliminary Economic Assessment in the third quarter of 2023.
The 65,000m drilling campaign is continuing, with all eight drilling rigs testing the Colina extension and new regional targets.
What else happened during the quarter?
Latin Resources invested an additional $3 million into Solis Minerals CDI (ASX: SLM) stock at 55 cents per share. This increased its interest by 4.66% to 17.79%.
The total investment is worth $8.8 million.
What did management say?
Latin Resources executive director, Christopher Gale commented:
This has been an impressive quarter for Latin Resources, as we have once again exceeded our expectations for the Salinas Lithium Project in Brazil.
Our 65,000m 2023 drilling program commenced on site, with assay results confirming the growth potential of the Colina West Prospect.
Our previously announced Mineral Resource Estimate is set to be re-evaluated in the near term as we have gained confidence on the growth opportunity based on results received.
We are also thrilled to have announced the new tenement package for the project, which increases our
holdings in the area by 367%, with a new total of 38,000 hectares.
Latin Resources also signed a non-binding memorandum of understanding with the government entity Invest Minas.
Gale said:
This agreement will facilitate the fast tracking of the Company's approvals and licensing, whilst we support the development of the lithium sector and employment opportunities in Minas Gerais.
What's happening with lithium prices?
According to dailymetalprice.com, the per-kilogram price for lithium is $39.529, up from the mid-$20s in May but down significantly on the $80 range seen in December.
