Raiden Resources Limited (ASX: RDN / DAX: YM4) (“Raiden Resources” or the “Company”) published its quarterly activities report and progress made during the June 2024 quarter. Raiden Resources is gaining momentum in its exploration activities at lithium assets in Western Australia’s Pilbara region. The Company is moving ahead strategically, withholding interest in various lithium mining tenements across Western Australia.
For the quarter ending June 30th, 2024, cash flows used in operating activities were AUD 327,000, cash flows used in investing activities were AUD 1,400,000, and cash flows from financing activities were AUD 253,000. The net cash and cash equivalents increase for the quarter was AUD 5,710,000.
Positive Market Sentiment of Critical Minerals:
Raiden Resources’ growth strategy aligns with global efforts to promote strategic minerals like lithium, copper, gold, platinum, palladium, and nickel, essential for clean energy and digitalisation. These minerals are also vital for renewable energy and EV batteries. The hydroenergy sector, responsible for three-quarters of greenhouse gas emissions, is crucial in mitigating climate change. Achieving net-zero CO2 emissions by 2050 is vital to limit global warming to below 1.5°C, requiring an accelerated transition to clean energy and rapid deployment of efficient energy technologies worldwide.
Figure 1: Global EV Adoption Rates, 2020-2040
Global investments in energy transition technologies reached USD 1.3 trillion in 2022.
Solar growth is expected to be sustained by the declining prices of photovoltaic cells and the increasing global demand for electricity.
According to another study, global sales of EVs are anticipated to account for half of the worldwide vehicle sales by 2035, amidst the drive towards achieving net-zero carbon targets.
Due to the industrial capacity built up over the decades, EV battery production is concentrated mainly in China. However, globally, Governments are aligning towards shifting their EV value chain to their respective countries to reduce excess Chinese dependency. As the world works on alternatives to China for the battery value chain, minerals exploration companies like Raiden Resources have the opportunity to contribute to the growing demand for critical minerals.
Raiden Resources’ Exploration Activities
Andover Lithium Project
The Andover Lithium Project (North & South) is Raiden Resources’ flagship asset. It is located in the Pilbara region, adjacent to Azure Minerals’ Andover Lithium discovery, which was recently subject to an AUD 1.7 billion takeover for a 60% stake. The project is anticipated to be one of the world’s most significant lithium pegmatite discoveries.
Andover South Project
- The heritage survey was completed, and no areas of cultural significance were identified.
- Discussions are ongoing with contractors about commencing the drilling program as soon as regulatory approval is obtained.
Andover North Project
- The heritage survey was completed with ongoing planning for further target definition work.
Mt Sholl Nickel-Copper-Platinum Group Elements Project
The Mt Sholl Project is 22 kilometres southeast of Karratha in the Pilbara region. It is 100% owned by Raiden Resources’ wholly-owned subsidiary, Pilbara Gold Corporation. The property is 10 kilometres northeast of the Radio Hill nickel-copper-PGE historical mine and its processing infrastructure.
- The Company’s ongoing activities and planning with Canada-based First Quantum Minerals Ltd. were undertaken over the quarter. Drilling will commence next quarter and will be funded by First Quantum Minerals Ltd.
Arrow Gold Project
The Arrow Gold Project is 110 kilometres southwest of Port Hedland in the Pilbara region. It consists of two exploration licenses (E47/3476 and E47/3478) covering an area of 377 km². Raiden Resources’ wholly-owned subsidiary, Pilbara Gold Corporation, holds a 100% stake in both licenses.
- Over the quarter, Raiden Resources entered into a 100% binding agreement with Mallina Co Pty Ltd, a private exploration company. Under this agreement, Raiden Resources will retain 100% of the Lithium-Caesium-Tantalum project and its associated mineralisation.
Bulgaria Exploration Activities
Vuzel Gold Project
- Raiden Resources undertook planning activities for a limited drilling program. The primary objective was to provide further structural and orientation information for further targeting and drilling. Approximately 250m of diamond drilling has been completed to date.
- Further work will be based on the results of the completed work.
Zlatusha Copper and Gold Project
- Throughout the quarter, the Company and Canadian-based Velocity Minerals amended their agreement, which was announced on January 24th, 2023. The amendment’s objective has been to extend the terms of the Zlatusha Project by an additional two years.
Long-Term Favourable Lithium Pricing Fundamentals:
Lithium prices have stabilised since the start of 2024, after the spike observed in 2022 and 2023. The price increase resulted from the high demand-low supply scenario worldwide. The price stabilisation has resulted in existing mine production cuts and consumers’ end of lithium destocking. The slowdown of production has primarily resulted in a significant levelling of prices over the second quarter of 2024. Additionally, the auctioning of lithium by several producers has helped rebound prices more quickly.
Figure 2: Global Lithium Prices, 2023-2024YTD
The long-term pricing fundamentals of critical minerals remain strong owing to the demand anticipated by the renewable energy segment. EVs, in particular, are expected to boost prices in the long term.
Leveraging Raiden Resources’ key projects’ strategic location and robust infrastructure, the Company is keen to develop these assets to meet the growing demand for critical minerals. Moreover, in its Critical Mineral Strategy 2024-2030, the Australian Government has committed USD 3.9 billion to accelerate strategically significant projects and strengthen the country’s metallic ore mining capabilities.
Investor’s Outlook
Raiden Resources is strategically accelerating its flagship assets under the strong leadership of Managing Director Mr Dusko Ljubojevic, a geologist with 18 years of industry experience. His work experience with key mining companies emphasises his capabilities to spearhead the Company and position itself as a market leader. Raiden Resources strategically holds greenfield and brownfield lithium tenements in Western Australia, which are considered one of the world’s best mining jurisdictions, with drilling activities anticipated in the near term. Future lithium demand, driven by electrification efforts in the automotive industry, will benefit players like Raiden Resources, who are discovering new resources.
As of July 31st, 2024, Raiden Resources Limited’s shares traded at AUD 0.024 per share, with a 52-week range of AUD 0.008 – AUD 0.080. The Company’s market capitalisation is AUD 62.53 million, with 2,718.86 million shares issued.
