As lithium steals the spotlight today with UBS estimating Pilbara Miners to realise spodumene prices of $3,360 per tonne on sales of 162,000 tonnes in the June quarter. The broker also sees IGO contract pricing for its September quarter to be $4240 per tonne, 12% above the current estimate.
Ben Richards shares that his top choice in the sector is IGO (IGO), which holds a 25% stake in the low-cost, producing Greenbushes mine in Western Australia. Ben also says Leo Lithium’s (LLL) Guillermina project in Mali, recently received a resource upgrade but advises investors to consider the company’s risk profile due to its West African jurisdiction. And Ben warns about optimism in the energy sector, specifically oil producer Santos.
He views the company as undervalued compared to peers such as Woodside and points out catalysts, like a possible sale of a 5% stake in their core Papua New Guinea LNG project. He also expects increased shareholder pressure and the potential for higher capital returns to positively impact Santos’ share price in the future.
Watch the interview: Ausbiz – Ben’s top picks in oil & lithium