butcherboy...there is no secret about why all of the lithium producers are being hammered upon. If you look at the strategy of the major oil companies, it has been to discourage investment in lithium production for obvious reasons. The price of oil has dropped precipitously over the past few years and the large producers look at lithium as a long term threat to their cash flow. I recently posted some information garnered from friends in the financial and banking business. The large oil companies i.e. BP, Shell, Chevron, etc. have been making a concerted effort through their proxies to short shares of lithium processors and release negative press articles through paid 'analysts' (if you can call them that). I see this as a losing battle for them, because ultimately, as China converts more and more of their transportation and energy needs into lithium power and storage it will become a tidal wave of change. After the 'Paris Accord', things were looking very positive for lithium....apparently to much so for the oil producers. Assuming Trump is relegated to the dust bin of history in a few months, the oil industry in the US will continue to be stunted by further regulations on fracking and refinery regulations. The thumbs down vote on the Keystone pipeline by the Obama administration laid down the gauntlet with the oil producer in the US and Canada.
My read...while they pursue a scorched earth policy to cripple the lithium industry...they are also posturing to buy into the industry ultimately. They are certainly better financed and have the experience in taking minerals from the ground and processing them. For them...spending a few billion dollars to damage the burgeoning lithium industry is chump change. If they can discourage investors it will be easier to buy in. I don't believe they quite took the EV business seriously until Tesla started building the GigiFactory in Nevada. Since then, the gloves have come off for the 'carbon barbarians'.
ORE Price at posting:
$3.73 Sentiment: Buy Disclosure: Held
