Which company to look into for Lithium?

Discussion in 'Stocks & Derivatives' started by bloomst, May 12, 2016.

  1. bellinvest

    bellinvest New Member

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    I seriously don't think you have comprehended just yet that the world is moving away from coal/oil/gas energy sourced and into renewables. It's waving in front of your face... :rolleyes: EV's are here and will be expanding their presence into the future. As I have stated previously... nothing can beat lithium on the cost-curve basis which is commercially available yet. That said, lithium explorer's/miners will continue to do well with ups/downs along the way like all markets. I've spread my risk across several and free carried on others so my risk profile is now nothing. It's all profit from herein... a bright few years ahead indeed.

    All the best champ...
     
  2. trew

    trew Active Member Silver Stacker

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    Serious question -

    if the price of lithium has recently doubled and keeps rising, won't that make electric vehicles more uneconomical ?

    what else will bring the price of batteries down if lithium is going up ?
     
  3. Dabloodymess

    Dabloodymess Active Member

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    Well I would say in the short term the price for lithium will rise, due to low supply. The supply side will increase to meet the demand over time and the price will reach an equilibrium. We are already seeing this with the number of miners/exploration companies racing into the lithium space.
     
  4. kramer

    kramer Member

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    the cost of lithium is a very small part of the cost of the battery. so no. cobalt / nickel prices will raise the costs
     
  5. bellinvest

    bellinvest New Member

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    Even if lithium prices stayed exactly where they are today... for the next say 5 years... company's like PLS/GXY/AJM etc. would all still be running 50-60% margins which are indicated in their most recent reports (producing concentrate). Supply/Demand will drive things but that said, i would be very content if the price didn't move for years.

    Cheers,
    B
     
  6. southerncross

    southerncross Well-Known Member Silver Stacker

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    I have to wonder if the people saying Lithium is a bubble, have actually really had a good look at what is occurring on the Lithium front.

    Lithium 101 Deutsche Bank: http://www.belmontresources.com/LithiumReport.pdf

    Just ten Pure EV manufacturers:
    1 - Renault-Nissan
    2 - Tesla
    3 - Mitsubishi
    4 - Geely Group
    5 - Chery
    6 - BMW
    7 - Daimler
    8 - Volkswagen Group
    9 - BAIC
    10- BYD

    And that does not include the generic Chinese brands, the truck's, the mining equipment, buses, bikes, boats or the hybrids.

    And then there is the coming tsunami of electricity storage, some one above said that Lithium is being conflated with EV's, Ummm, you can't have an EV without Lithium ,ergo more demand for Lithium, ANY sort of competition for the Li battery, even if it was proven tomorrow would be a decade away at the bare minimum. Lithium can not be beaten for weight V storage capacity at this stage, and there is NOTHING out there that can beat this aspect yet.

    http://reneweconomy.com.au/2016/brief-look-global-demand-lithium-62981

    http://www.greentechmedia.com/articles/read/The-Plug-and-Play-Grid-Is-Not-That-Far-Off


    [​IMG]
    Source: http://cleantechnica.com/2016/05/12/market-opportunity-energy-storage-uk/


    At the very least watch this video for just a taste of what is coming in the very near future.

    [youtube]http://www.youtube.com/watch?v=Kxryv2XrnqM[/youtube]


    Unlike Gold, Silver, Oil etc there is no paper market for Lithium as yet, just plain old supply and demand between producer and supplier and for now the people who are buying acknowledge that they need and will need more and more of it. Gangfen a Chinese group are grabbing as much as they can to secure supplies
    http://www.neometals.com.au/lithium.php

    Now people might say "yeah but look, there is huge amounts of Lithium in the brine lakes of South America" and they are right, but to produce the refined product suitable for energy storage you need to purify it first and no two brine chemistry's are the same , and on top of that to increase output at one of these brine lakes you need to first construct more evaporation ponds, and then wait at least 18 months to get your first product. You are looking at least 3-4 years before any new product can come on line, and that is if it does not rain in the meantime, you don't have problems with the Gov't or your competition, and you can satisfy environmental regulations such as water and wildlife impacts in what are quite fragile environments.
    Or you can go to a hard rock spodumene source, Which the Chinese prefer, which is easy to purify, easy to mine, can be scaled up quickly, and covers a lot smaller footprint than massive evaporation ponds.

    The technology is already here and is only going to improve exponentially in the next few years, the uptake of it is already happening, the demand for Lithium will increase fivefold at least over the next decade and similar to Gold mining, the easy to get to stuff will be the first off the line which at this stage is hard rock spodumene.

    Do yourself a favour and look into it a little more because at the moment you read like a bunch of people who in the early 1900's were looking at the first motorcars
    and saying "they will never take off". Lithium is the New Gasoline, and there will be new Exon's, Shell's and BP's arising in the near future as all this comes together.
     
  7. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    PLS has a trading halt today until Tuesday pending an announcement on "material contracts"

    Anyone holding PLS? I have a friend who is balls-deep and so I have been studying it a bit.
     
  8. scrooged

    scrooged New Member

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    Yep. Not balls deep, but pretty deep.
     
  9. Lunardragon

    Lunardragon Well-Known Member Silver Stacker

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    Read that pls and lit joint collaboration?
     
  10. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Looks more like a BOA (Binding Offtake Agreement) to me.

    Apparently one of the head honchos has been in China potentially negotiating a nice deal.

    The strong rebound in price the last couple of days since the Brexit shock suggests insiders know it's going to be good.....
     
  11. LovingtheSilver

    LovingtheSilver Active Member Silver Stacker

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    I only have 100,000 shares, should've bought more. Sold some a while back to take some profit off the table. Looking forward to announcement and my other Li stock AJM to start moving. Has been stuck in the mud lately, waiting for DFS.
     
  12. kramer

    kramer Member

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    Still holding psc / bgs. The suspense is killing me waiting for drilling results..
     
  13. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    PLS reversed a selloff this afternoon to bounce strongly from 0.443 up to 0.53 and closed on its high. Volume was an impressive 27 million shares traded which is the highest volume since the big run up in April 2016.

    Chart shows a triple bottom now with strong support in the 0.43-0.45 range (June 24, July 26 & August 16) all of which show volume spikes.

    All very strong technical indicators and with announcements due soon this could be a very interesting week for PLS. Take a look.
     
  14. Lunardragon

    Lunardragon Well-Known Member Silver Stacker

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    Do you think this time it will break .60 and stays above?
     
  15. Abossy

    Abossy Active Member Silver Stacker

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    Out of the current Lithium plays which one is close to actual production on the spec side? I hold PIO but am thinking of moving it into BGS as it shows a bit more promise.

    The market response to the latest drill results were a bit underwhelming though.
     
  16. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Talk is that there is a DFS due fairly soon. If that comes out and looks good then I could see it smashing .60 and staying above there. But that's purely a speculative play.

    From a short term TA perspective I think .60 is a decent target, but in the absence of any news (new fundamentals) then it'd probably be a good price to sell some if you're interested in trading the swings as I'd expect it to hit some resistance.
     
  17. southerncross

    southerncross Well-Known Member Silver Stacker

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    PLS will be a multi dollar stock in years to come if it is not taken over in the short term.
     
  18. scrooged

    scrooged New Member

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    Banga! Potentially the ultimate Blue Chip litho of all time.
     
  19. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Galaxy Resources (GXY) has been hammered this month. Down from a high of 0.49 on 1st Aug to touch 0.325 this morning is a drop of 34% in just over 2 weeks!

    Takeover announcement is out and volume is up heavily today. Looks to me like it could be bottoming here.

    I'm in at 0.34 but DYOR
     
  20. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    These lithium stocks are NUTS. GXY rallied back to 0.40 and I'm out again. 17% ROI in a couple hours. It's fkn heart attack material for long term holders.....
     

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