Mineral Resources (ASX:MIN) shares were down as much as 4.3% in the morning before regaining some ground by midday. The stock fell after the company dismissed media speculation that it had already locked in a decision to build a lithium processing plant at its Wodgina mine.
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Mineral Resources, also called MinRes, provides mining services and operates mines for various partners. The Wodgina mine is a joint venture between MinRes and Albemarle. MinRes clarified that it has not yet made a decision to build a lithium hydroxide facility at the Wodgina mine, as had been reported in the media.
It was reported in the Australian Financial Review that during a recent investor tour, MinRes reportedly said it can build a 50,000 tonne lithium hydroxide plant at the Wodgina mine.
Mineral Resources share price forecast
MinRes shares have climbed about 60% in the past three months, with many investors flocking to lithium stocks. Lithium is in high demand and its price has risen sharply in recent times. The metal is a key material in the making of batteries that power electric vehicles and used to store energy from solar and wind.
According to TipRanks’ analyst rating consensus, Mineral Resources stock is a Strong Buy based on seven Buys and two Holds. The average Mineral Resources share price forecast of AU$79.93 indicates over 12% upside potential.
Final thoughts
Regardless of any decision on the lithium processing plant, the demand for lithium has provided strong advances in Mineral Resources’ stock this year – a trend its investors hopes will continue in the months ahead.