Leo Lithium shares remain suspended. Here's the latest

Leo Lithium shares are out of action until at least Monday.

| More on:
A corporate man crosses his arms to make an X, indicating no deal.

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

It has been a while since we saw Leo Lithium Ltd (ASX: LLL) shares on the ASX boards.

The lithium developer's shares have been suspended from trade since 18 July.

What's going on with Leo Lithium shares?

Leo Lithium shares were suspended last month at the company's request while it has discussions with the Malian government.

While the company hasn't revealed what is going on, there are a couple of potential reasons for the suspension.

The first could be the company's plans to start exporting direct shipped ore (DSO).

A number of African countries have recently banned DSO exports. They want miners to process ore in their country to support jobs, rather than have them dig it up and throw it on a boat to be processed elsewhere.

In addition, there were reports last month that the Malian government wants to change mining laws. The Reuters report claims that the government is aiming to take a direct 10% stake in mining projects once a permit has been issued.

The laws apparently would also give the state the option to buy an additional 20% within the first two years of commercial production.

What's the latest?

This morning, the company has extended its suspension until Monday of next week. It said:

The Company requests an extension to its voluntary suspension pending an announcement in relation to ongoing incomplete discussions with the government of Mali on correspondence that it has received. The Company anticipates that the voluntary suspension will end upon the Company releasing the above announcement, which is anticipated to occur on or before Monday, 28 August 2023.

Whether or not we will see Leo Lithium shares resume trade on Monday, is hard to say. After all, its shares were expected to return to action today after the release of the promised announcement, but that didn't happen.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Materials Shares

a man in a hard hat and overalls raises his arms and holds them out wide as he smiles widely in an optimistic and welcoming gesture.
Materials Shares

Macquarie tips 18% upside for Pilbara Minerals shares

The broker has good things to say about this lithium giant.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Materials Shares

Why is this ASX mining stock crashing 25% today?

Let's see why investors are hitting the sell button on Friday.

Read more »

A man working in the stock exchange.
Materials Shares

Are Liontown Resources shares a sell according to Macquarie?

Let's see what the broker is saying about this lithium miner.

Read more »

Miner standing in front of a vehicle at a mine site.
Materials Shares

Rio Tinto shares sink on half-year profit decline and smallest dividend since 2018

Investors haven't responded positively to the miner's half year update.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Materials Shares

Are Pilbara Minerals shares a buy after its strong quarter?

Let's see what analysts are saying about this mining giant after its update.

Read more »

CSR share price rising asx share price represented my man in hard hat giving thumbs up
Materials Shares

Rio Tinto share price in focus on US$4.8b half year profit and dividend cut

Let's see how the mining giant performed during the first half.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Materials Shares

Is now a good time to buy Liontown shares?

Let's see what Bell Potter is saying about this lithium miner.

Read more »

Worker in hard hat looks puzzled with one hand on chin
Materials Shares

Guess which ASX 200 mining stock is crashing 12% on Wednesday

This miner is being sold off today. But why? Let's find out.

Read more »