GXY 6.40% $3.51 galaxy resources limited

Looks like the "oversupply camp " is in control and winning over...

  1. 394 Posts.
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    Looks like the "oversupply camp " is in control and winning over the masses in the 2nd half of 2018 and probably early 2019.
    The huge demand for lithium is unquestionable and is getting bigger and bigger in 2 to 5 years time and beyond.
     The negative sentiment and lower price means 3 things - not all planned lithium mines will come on stream, only low cost producers will survive  and appetite for lithium investment will reduce.
    With almost all known planned development / expansion encountered delays, lack / short of funding, flood and lately, the funding saga at Nembuska will only means the lithium price will improve in the middle term.
    IMO, current depressed lithium market will bode very well for major lithium producers including GXY (high quality asset, low cost, no funding issues) in the longer term, unfortunately many newcomers (those will limited funding and marginal quality asset) will miss out. 
    I reckon the lithium tide will turn positive soon.
 
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