DRC ELECTION TODAY AVZ concerns, page-105

As a result of increased supply from Chinese lepidolite producers, as well as contribution from Chinese-backed African spodumene producers, and against a backdrop of “weaker demand”, UBS has downgraded their price forecasts for lithium prices by 45% in 2024, 35% in 2025, and by 23% in 2026.

According to UBS, lower lithium minerals prices will likely result in a potential halving in ASX lithium company profits in FY2025. In terms of overall share price impact, ASX listed lithium company valuations need to be pared back by “8-19%”. UBS provided specific analysis on Pilbara Minerals, IGO, and Mineral Resources:

https://www.marketindex.com.au/news/still-more-downside-in-lithium-ubs-downgrades-pilbara-minerals#:~:text=As%20a%20result%20of%20increased,and%20by%2023%25%20in%202026.