European Lithium lists on Frankfurt Stock Exchange
Shares in European Lithium (ASX:EUR) were up more than 5% in afternoon trading after the company announced that it had listed its shares on the Frankfurt Stock Exchange, increasing the group’s exposure to European investors and potentially opening new doors should the company look to raise capital through debt financing or the issue of shares.
EUR’s Wolfsberg lithium project is situated in Austria, and it is quite customary and usually beneficial for companies with operations in the Northern Hemisphere to list on exchanges in close proximity to their business centres.
EUR’s non-executive Chairman, Tony Sage, summed up the development in saying, “This is a positive step for the company as we now have increased access to the European market which is very strong for critical commodities such as lithium”.
Tapping into northern hemisphere markets and money
There is good support for this argument given that burgeoning manufacturing hubs such as Germany are right on Austria’s doorstep. Not only is it a source of demand for lithium, but it also promises to be a ready market for some of Wolfsberg’s by-products that are used in the ceramics and glass industries.
Looking specifically at lithium and its applications in the electric vehicle and power storage markets it is important to bear in mind that Germany is a major automotive manufacturing country.
However, it is also worth noting that large corporates are considering Austria and nearby countries as potential sites for gigafactories that will be supplying components for the electric vehicle market.
Management reminded the market that the release of an upgraded resource model for Wolfsberg was anticipated by early November, and there appears to be a reasonable degree of confidence that this could elevate the profile of the project.
However, it is impossible to predict revised resource modelling and as such this along with previous share price trading trends should not form the basis of an investment decision. EUR is an early stage mining company and independent financial advice should be sought before investing in the group.