Lithium is So hot currently, this results in many junior mining companies turn to join this big party, also, the existing giant lithium companies want to expand their production capacity.
From the past several years, lithium price surged 2 to 3 times of 2015's price. With so many new entries and the planning expantion of current production, Morgan Stanley predicted lithium price would droped 45% by 2021. This is So risky for the junior companies who seek to produce lithium only.
ASN has multiple minerals, which diversified the risk and can generate multiple revenue as well.
Lithium market might be stuck for a couple of years, for the juniors or the new entries, especially for the companies who still use evaperation pond and old technology, might face a difficult situation to survive, as the profit margin is So low (cost high), also, the high cost for building plant.
Oppositely,
1. the Bromine and Iodine demand are predicting to increase 3% per year till 2025 (I posted a couple days ago), so, ASN has more safe situation and competitive advantage comparing the junior rivals and new entries from my own opinion.
2. The cutting age tech can save a lot of time, money and space for ASN.
DYOR
ASN Price at posting:
8.2¢ Sentiment: Hold Disclosure: Held
