Zimbabwe's Lithium transactions in the past two years

Zimbabwe is currently the World's 6th largest producer of lithium and holds the largest reserves in Africa. Annual output for Zimbabwe has been averaging 1600 tonnes with most of the product mined from the Bikita pegmatite. Oversupply and other market factors led to a downturn of the sub sector between 2018 and 2020. Renewed demand for EV batteries has driven average concentrate prices (spodumene) up 352% to US$2,700 with further upside foreseen in 2023. Additionally, battery grade lithium carbonate hit an all time high of US$74,475/tonne in 2022 triggering a rush to secure supply. In December 2022, the government of Zimbabwe banned exports of unprocessed ore to promote beneficiation. Infrastructure by large scale miners supports value addition up to concentrate level. Effective 1 January 2023, the royalty rate for Lithium was upped to 5%

Lithium transactions conducted in the past two years ~Acquisition of Bikita Minerals by China Sinomine Group for US$200mn ~Acquisition of Arcadia Lithium mine by Huayou for US$422mn ~Acquisition of 51% of Sabi Star mine by Chengxin Lithium Group for U$76.5mn ~Forward purchase of concentrate for US$35mn by Suzhou TA&A to be to Zulu Lithium and Tantalum project to be used to commission a large scale pilot plant near Bulawayo. SOURCE----ZIMBABWE EQUITY RESEARCH EQUITY STRATEGY 2023 JANUARY 2023