And rightly so .. The bank contagion will take time to play out .. We do have some things in our favour though.
Firstly, the GFC taught some crucial lessons on how to avoid another "Credit Crunch" .. Which led to the full scale destruction of assets ... Secondly, the whole greenie, no fossil fuel mantra will not go away now. The world needs to transition to a more sustainable energy production and storage which needs lithium as a key ingredient.
I would expect the U.S govt to dish out some bug money, even bigger than before you add a further kick start to the economic stability and the EV boom.
If anything, this whole market scare could actually be a positive long term for ASN. The lithium winter of years gone past put a lot of good projects on ice E.G ASN - Which resulted in a major lithium shortage. I can see a similar thing happening again. Poor macro conditions can halt the momentum of lithium projects in the pipeline creating the next lithium bubble again .. We know some projects like ASN, LTR will get off the ground, other good projects with other risks may not fare so well.
LKE is almost a write off, AVZ could be in suspension until 2024 according to AVZ management. VUL delays, GLN is in Argentina and LLL is in Mali ... The demand will keep coming but I highly doubt the supply will flow through as anticipated.
ASN Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
