Piedmont Lithium Share Price up on Expanded Drilling (ASX:PLL)

By Dr. Lachlann Tierney, Tuesday, 17 November 2020

At time of writing the share price of Piedmont Lithium Ltd [ASX:PLL] is up 10%, trading at 40.5 cents. For now, the PLL share price seems to have bounced strongly off of the 27.5-cent mark. We look at the announcement that has it moving upwards...

At time of writing the share price of Piedmont Lithium Ltd [ASX:PLL] is up 10%, trading at 40.5 cents.

You can see some key levels for the PLL share price on the chart below:

Source: tradingview.com

For now, the PLL share price seems to have bounced strongly off of the 27.5-cent mark. We look at the announcement that has it moving upwards.

Expanded drilling program helps PLL share price move higher

Here are the key details from today’s announcement:

More than double the current number of drilling rigs (three more for a total of five)
25,000 more metres
Resource update on track for Q12021

So depending on what the expanded drilling program finds, there is a potential catalyst out there for the PLL share price.

The initial hype around PLL was due in part due to an early announcement of a sales agreement with EV giant Tesla Inc [NASDAQ:TSLA].

Outlook for PLL share price

I suspect a Biden win in the US presidential race may be a long-term benefit for the company.

The US is increasingly looking to secure its resource supply chains.

This to go with the view that the lithium price bottom is in, at least as far as Canaccord Genuity is concerned.

I’ve noticed some big volume spikes of late on the chart for The Global X Lithium & Battery Tech ETF [LIT]:

Source: tradingview.com

LIT is in a steady uptrend, perhaps a leading indicator that investors think lithium and battery tech is back on the agenda in a big way.

We talk about LIT and three lithium stocks in this free report.

One of which has a special exposure to the European market, which is proving to be the EV epicentre.

It’s an intriguing lithium prospect, to be sure.

Regards,

Lachlann Tierney

For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe

0 Comments

Dr. Lachlann Tierney

Dr. Lachlann ‘Lachy’ Tierney is passionate about uncovering hidden opportunities in the microcap sector. With four years of experience as a senior equities analyst at one of Australia’s leading microcap firms, he has built a reputation for rigorous research, deep-dive due diligence, and accessible investor communications. Over this time, he has vetted seed, pre-IPO and ASX-listed companies across sectors, conducted onsite visits, and built strong relationships across the microcap space. Lachy holds a PhD in economics from RMIT University, where his research focused on blockchain governance and voting systems. His work was housed within the Blockchain Innovation Hub at RMIT, a leading research centre for crypto-economics and blockchain research. He also holds a Master of Science degree from the London School of Economics and an B.A. (Hons.) in Philosophy and Politics from the University of Melbourne. Born in New York and raised in California, Lachy grew up a few blocks from biotech giant Amgen and counts among his peers various characters in the overlapping worlds of venture capital, technology and crypto. When he’s not researching microcaps, he’s most likely sweating it out in a sauna or dunking himself in cold Tasmanian water.

Dr. Lachlann’s Premium Subscriptions

Australian Small-Cap Investigator

Fat Tail Microcaps

James Altucher’s Early-Stage Crypto Investor Australia

Remember the past to understand the future
By Greg Canavan

I know it doesn’t feel like it, but the ASX200 Total Return index nearly hit a new all-time high yesterday (see chart below).
David Jones: A Wake-Up Call for Australia’s Middle Class
By Brian Chu

David Jones entering into voluntary administration signals the further decline of Australia’s economy, particularly the middle class. However, this doesn’t have to continue if Australians make this decision to turn their destiny around…
ASX 200 chasing SP500…can small-caps be “defensive”?
By Dr. Lachlann Tierney

The ASX200 is clawing back ground on Wall Street, and a 494-page bill in Washington could hand ASX miners a gift. Back home, your pay packet tells a grimmer story.

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.