When will Leo Lithium shares return to trade?

This lithium developer's shares have been out of action for four months.

| More on:
Man on a laptop thinking.

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 now been over four months since Leo Lithium Ltd (ASX: LLL) shares last traded on the ASX boards.

But that doesn't mean the embattled lithium developer hasn't been busy behind the scenes.

This morning, the company released a quarterly update, which provided investors with an idea of what's been going on at its Goulamina operation in Mali.

What did Leo Lithium say?

According to the release, the company has made further progress at Goulamina, which is the world's fifth largest spodumene deposit.

Its mining contractor mobilised their main fleet to site during the quarter and 549,000 bulk cubic metres of material were mined.

In addition, construction and mining activities have progressed with a workforce of 1,800. The initial commissioning team is mobilised and operational readiness planning has been launched.

All in all, management estimates that the project is approaching 60% completion.

This is being supported by its partnership with Ganfeng, which is China's largest lithium producer. During the quarter, a US$137.2 million Equity Investment Deed (EID) was executed and the first US$12.4 million funds were received.

When will Leo Lithium shares return?

As a reminder, Leo Lithium shares have been suspended pending an announcement in relation to correspondence from the government of Mali and the application of the 2023 Mining Code to the Goulamina Lithium Project.

This mining code reportedly allows the military-led government to increase its ownership in projects across the country to as much as 35%.

Unfortunately, it remains unclear when the company's shares will return to trade. Leo Lithium's managing director, Simon Hay, revealed that the two parties remain in talks. He said:

Leo Lithium continues to actively engage with the Mali Government to reach a constructive resolution, and we appreciate our shareholders' patience and support as we navigate through this process.

Nevertheless, Hay remains positive on the project's future. He concludes:

We hold a strong relationship with Ganfeng and we are pleased to report on the operational progress made on the ground in the quarter. Leo Lithium and Ganfeng continue to work towards bringing the project into production to become West Africa's first spodumene producer and supply the growing lithium-ion battery industry.

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 holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Materials Shares

Down 39% in a year, why IGO shares still look overpriced

A leading expert doesn’t believe IGO shares are out of the woods just yet.

Read more »

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

This ASX 300 stock is surging 25% on US defence deal

The announcement of a 'a pivotal milestone' is getting investors excited today.

Read more »

A happy construction worker or miner holds a fistful of Australian dollar notes.
Materials Shares

$5,000 invested in BHP shares 5 years ago is now worth…

Will its shareholders be happy with their investment? Let's find out.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Materials Shares

Guess which ASX 200 stock is ending the week with a bang thanks to Rio Tinto

This stock has won a major contract from the mining giant.

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.
Materials Shares

Is it time to buy ASX lithium shares?

Lithium prices continue to sink. Has this created a buying opportunity?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Materials Shares

Mineral Resources shares sink on Onslow Iron blow

This miner is having a tough session. Let's find out why.

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Materials Shares

MAC Copper shares in trading halt as miner flags 'potential control transaction'

MAC Copper shares are frozen while Sandfire Resources shares are the fastest risers of the ASX 200 today.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Materials Shares

Bell Potter says this ASX lithium stock could rise ~50%

The broker has just put a buy rating on this lithium stock.

Read more »