G1A 0.00% 5.9¢ galena mining limited

Lithium is not rare and there is a deluge of supply coming....

  1. 10,813 Posts.
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    Lithium is not rare and there is a deluge of supply coming. Given all the players involved and the long lead times (sorry for the pun) it is going to take a miracle to not hit an oversupply situation at some point in the next few years that will wipeout your investment.

    High quality lead resources in tier 1 locations are not common. While lead is the most boring of the base metals, this is a good thing from an investment perspective. The price is relatively stable and bankers are much more comfortable lending to develop a mine. A resource with low production costs and high quality ore like Abra will be relatively impervious to the commodity cycle. You are not going to make 20x from G1A, but at the same time you are unlikely to lose money. Anything above 2x and I will be happy.
    Last edited by Davisite: 01/12/18
 
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