Thanks for the constructive criticism.
I do agree with you assessment on multiple levels
1) I believe that the Petro industry is manipulating supply and demand numbers talking about potential oversupply in order to spread fear, and possibly to slow down EV so that can make their investments and diversify some of their oil assets
2) Investment banks are getting it completely wrong, and just recently Citi changed it's tune completely on lithium, and in the short-term there will be definitely be a much tighter supply than previously expected.
3) I don't necessarily believe in the big banks demand levels, however, like you mentioned, I feel as shareholders, we are all dependent on their thinking, as they have the resources to manipulate share prices on extreme levels. Hence, why its important to use their own numbers to show how brilliant GXY is diversified.
4) In the more bullish scenarios, GXY will be thriving at Mt. Cat and SDV and maintaining profit margins, yet I tend to play's devil advocate when investing, and if there are unforeseen problems, that stall the EV and battery storage revolution, it will be important to weather the storm thru having the low-cost SDV up and running.
2018 is tough to predict at the moment, because there should be increased supply coming from other miners, and whether demand stays or changes, no one knows. Optimistically, yes, pessimistically, there could just be a temporary slow down or step back, based on political, and economic factors in China, the US, and in Europe (ie these 'populist' movements as a guise by the oil industry to keep emerging and developed countries dependent on oil, and kill governmental EV incentives) Ultimately, the driving factor will be the economics of battery storage and the continued decreased in cost/kwh to $100/kwh, which will force the inevitable shift, and allow the middle class to purchase EVs and have access to battery storage.
The time frame is what is important, weathering of these temporary setbacks that I envision will happen will be important and GXY is well diversified to combat these different realities.
GXY Price at posting:
50.5¢ Sentiment: Hold Disclosure: Held
