Why? 8mt is meagre and 0.3 grade cut off is unheard of; if not makes me feel like its a bit of smoke and mirrors
0.3 cutoff will make for a High AISC - still ample margin on offer in lithium, i assume AISC will be high 400's against selling prices of 6000, but what will margins be when supply catches up beyond 2025
Nothing in the measured category as yet - i imagine that narrows the funding opportunities and we know this is generally the orphan period in mining lifecycle
Market cap at 81m is quite appealing , Certainly reward on off and I would have held if not for better lithium opportunities elsewhere.
LCE price is falling , now at 550 yuan. Tesla getting smashed and we know lithium moves with Tesla headliners. This is going to make it hard to get a good risk premium on lithium stocks
Technical support being tested now for the 3rd time@ around 31c, failing this and we are in a bit of pain. Testing support three times in a year when lithium stocks are flying isnt that great, id agree it can happen on an explorer but nothing to soothe the risk nerves when we can test support even with new news being factored in
Overall its been a good trade but in light of other opportunities in lithium, I am afraid ESS does not stack up as the best place to put your limited cash to work.
IMO and I have been an ESS stock and option holder for some time now. My intention is to share my thinking and I wish everyone all the best
GLTAH
Note: if ess does come much lower - ~20c, I may re-enter as the market cap is appealing
ESS Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
