The rare-metal fanbois aren't going to like me. There is already 30% overcapacity in primary lithium production worldwide. People have made good money speculating on rare metals and if you get out early enough, well done. The problem is the cash-for comments analysts just don't consider the likely reaction of competitors.
A simple exercise in truth, and I'm talking about coherent and correspondent truth here for those who fear the metaphysical.
Work out the size of the primary lithium market in $US (not the chemical or battery market that the promoters talk about - these newbies aren't making downstream products and they get paid for the primary mineral only)
Compare the market cap of the new entrant to the size of the primary lithium market.
If it seems proportionately really large - it is over valued. PLS has a market cap of more than half a billion bucks.
Now, what is the size of the primary lithium market again?
AGO Price at posting:
2.3¢ Sentiment: Sell Disclosure: Not Held
