Its a little confusing reading posts, only to realize they are replying to trolls. My head hurts when things get complicated.
If I can't KISS (keep it simple stupid), I don't like it.
Shorting of lithium stocks began with the oversupply story and Australia was flooding the world....sure.
Australia miners do not produce lithium. They produce spodumene.
Greenbushes is a location in WA.
Talison (Tianqi 51% chinese own)/ Rockwood ( ALb 49% own). The aim is to produce lithium chemicals. Yet to start.
Min- sold DSO. Now building a spodumene mine. Alb and Ganfeng as partners.
A40 (taw) half singapore ownership. CATL is customer.
Nmt- spodumene, min major owner.
AJM- spodumene. Jianxi Ganfeng customer.
PLS- spodumene. Ganfeng, posco. etc.
GXY - spodumene, aim battery grade carbonate.
ORE- australia company, mine in Argentina. Carbonate. Less than half is battery grade ($14k/t), technical grade carbonate ( $9k/t).
Agy- carbonate (pilot) at this stage. Lpd the same.
KDR- Sqm partner.for lithium chemicals.
Nothing else is coming from Australia.
China spot carbonate fell because chinese mine produced low quality (technical) carbonate, unusable for batteries.
Battery grade prices remained high, higher cost are involved, otherwise they explode.
Hydroxide cost an additional $2k to produce from carbonate. Plus profit margin. Hence its higher.
A small volume of non contract spodumene out of spec was sold for $620/t on spot, the customer bought because they were desperate for supply. The banks jumped on claiming all spodumene was to fall. The tracked contract price for known australian spodumene in 2019 are above $700/t.
China asked ALB for lower price carbonate, the chinese lost a supplier. Alb sold outside of china at a higher price. They got the sparrow.
The oversupply stories benefited the shorting bankers. China use the mirage of oversupply story to buy lithium products cheap. China doesn't have quality supply nor volume, so they buy from the world.
Repeat a lie enough time and people believe it. The industry and investors know its BS( brown sugar) coated. Demand is growing 15 -20% for lithium products. The trolls try to convince people otherwise. Many have listened and sold at a loss.
For investors, the P/E 4 is all you need to care in a growing industry. This made warren a billionaire.
Which other lithium stock have this.
