Thu Sep 12 01:32:02 UTC 2024: ## ASX Lithium Miner Mineral Resources Soars on Broker Upgrades and Supply Concerns
**Sydney, Australia – September 12, 2024** – Mineral Resources Ltd (ASX: MIN), a leading lithium and diversified resources producer, saw its share price surge today, closing up 9.2% after a 16% gain yesterday. This significant rally comes amidst a challenging year for the company, with its share price down almost 46% in 2024.
The jump is attributed to several factors, including a bullish outlook from JP Morgan, which upgraded Mineral Resources to an “overweight” rating with a $50 price target, representing a potential 30% gain from current levels. This optimism is fueled by the recent approval of the company’s sale of its 49% stake in the Onslow Iron haul road project to Morgan Stanley Infrastructure Partners for $1.3 billion. This deal will help Mineral Resources cancel its US$750 million undrawn bridge facility and generate positive cash flow from the project starting next month.
Adding to the positive sentiment is the potential for a lithium price rebound. Reports suggest that Chinese electric vehicle battery manufacturer CATL has suspended production at two of its lepidolite lithium mines. This could lead to a supply shortage and drive up prices.
Analyst Kate McCutcheon of Citi forecasts a 20% to 25% increase in lithium prices over the next three months, raising her three-month price target for lithium carbonate to US$14,000.
While the recent surge in Mineral Resources’ share price is encouraging, investors should remember that the company is still facing challenges, including the impact of falling lithium prices. However, with the potential for a lithium price rebound and a strong outlook from brokers, Mineral Resources is positioned for a potential recovery in the near future.
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