Insights

Why the European Lithium (ASX:EUR) share price is rocketing 9%

What did the miner announce?
The post Why the European Lithium (ASX:EUR) share price is rocketing 9% appeared first on The Motley Fool Australia. –

The European Lithium Ltd (ASX: EUR) share price is surging during early afternoon trade on Wednesday. This comes after the company announced it has agreed to pursue a cooperation and offtake partnership with an international commodities merchant.

At the time of writing, the lithium miner’s shares are up a sizeable 9.52% to 11.5 cents. It’s worth noting, however, that despite the strong gains, its shares are still down 14.8% in a month.

Why is European Lithium shooting for the stars?

Investors are driving up the European Lithium share price following upbeat sentiment on the company’s potential commercial opportunities.

According to its release, European Lithium advised it has signed a multi-tiered non-binding memorandum of agreement (MOA) with Traxys.

This sets up the future supply of lithium hydroxide (LiOH) from European Lithium’s Wolfsberg Project in Austria.

Under the terms, Traxys will retain exclusivity until the end of the first quarter of 2022. This will allow it to finalise the offtake agreement with the miner.

Traxys will also provide support in securing working capital and other project financing facilities for the development of the Wolfsberg Project. So far, the physical commodity trader and merchant has introduced European Lithium to financial institutions in relation to project finance. This has led to the opening of direct communications between European Lithium and the potential lenders.

Furthermore, discussions are being scheduled regarding a potential investment by Traxys for the commercialisation of the Wolfsberg Project.

European Lithium chair Tony Sage said:

Finalising an offtake agreement is another key milestone for the Company and will add to recent developments at the Wolfsberg Project. In the current high lithium price environment, partnering with Traxys and leveraging their expertise will achieve the best result for shareholders while the company retains flexibility.

About the European Lithium share price

In the past 12 months, the European Lithium share price has boasted a gain of around 140% from continued positive investor sentiment. The company’s share price charged higher in early November following a resource re-estimation of the Wolfsberg Project.

Based on today’s price, European Lithium has a market capitalisation of around $124.25 million, with roughly 1.08 billion shares outstanding.

The post Why the European Lithium (ASX:EUR) share price is rocketing 9% appeared first on The Motley Fool Australia.

Should you invest $1,000 in European Lithium right now?

Before you consider European Lithium, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and European Lithium wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

What happened to the European Lithium (ASX:EUR) share price today?

European Lithium (ASX:EUR) share price sinks after listing in US

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!