ARL 0.00% 36.5¢ ardea resources limited

Well, people are emotional...:) They get very excited when the...

  1. 159 Posts.
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    Well, people are emotional... They get very excited when the prices go up,and they get very pessimistic if prices are in down trend,and this can go on for a long period of time, but those who can stay rational, and do their reseach can reap the opportunities these extremely bullish and extremely pessimistic behaviors presents.

    There was probably no better time to buy into this company shares than these days, unless at the first month, at or close to the first listing price, out of that by far the best time to buy shares in this company is in these very days.

    The project advanced a lot since the beginning of 2017 we know a lot more,we derisked a lot around the project, and what is the most important the EV market boomed forward a good two year since this company started. All the mayors commited a lot of money to build EV-s,Giga factories been build,and planed in enormous numbers. Mayor countries and regions declared War against climate change and so on combustion engine.

    So ask anyone honestly the question does our investment trully worth the same What in 2017 Marc did?! If you think long term the answer is absolutelly not.

    Every month as EV push further forward rapidly and more and more crystalize the obvious on the walls that we are in a great transition,so will worth our project more and more. This trend will end up having no internal combustion cars within 30 years on the roads.

    As soon as people understand that there is not much way around for the next decade,but NCM and NCA Li ion battery EV development, and we will need at least another 1 million tons of Class 1 nickel until 2030(but probably more), and another 150 000 Tons of cobalt compared to todays demand, and Ardea with its respectable size 2.25MTPA mine would only feed in 18 000 tons of Class1 Nickel and 2150 tons of Cobalt. Than will it dawn on the people that we are super far to meet the inpending demand growth with supply. I dont think that Class 1 nickel, and cobalt will ever experience greater demand growth in absolute terms than what is coming.

    In fact i am keep asking myself whetever there will be enough raw material for this coming demand growth, and i always come to the conclusion that it wont be easy if it happend but surelly both metal prices will see substantially higher prices and those higher prices will stay there for many years , Nickel sulphate probably will have to go up to 25-30 000/ton,and need to stay there for sustainable amount of time sometimes during the next decade to incentivise the enormous risk capital to build in such speedy manner so many new Class 1 nickel projects.Cobalt prices will be also high but fluctuate, thanks to artisanal mining which can be switched on and off as the prices would get too crazy, which will serve as a control agent to avoid too crazy prices for the next 5 year later on probably their impact will be much smaller on the market. Of course i dont think these prices are the story for next year, but rather it all tied to the cost parity event when will that happend, from that year we will have the jump point in demand.

    The estimated ~70 Billion USD price tag for needed Nickel project investments until 2030 is very real it only takes time to dawn these facts on the investments community, and pessimism be taken over by optimism.
 
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