Hey
@Philley,
A lot depends on your expectations as an Investor. If you currently have a very short term time horizon, you could be tempted into cycling your capital into other segments - like Uranium for instance which is seeing a lot of interest (and liquidity) since Trump's Executive Orders last Friday.
The Lithium sector has been in a rut for quite some time and the slow grind downwards in the Spot Price is keeping a lot of the money inflow at bay for the time being. Having said that, the current Lithium price is unsustainable for the longer term and there aren't many producers that can make reasonable returns (or for some, any returns) at this level. This, in itself, will spur on curtailments for many projects on the supply side and that will serve to improve the picture - as they keep saying, "low prices are the cure for low prices".
When it comes to Vulcan specifically, I believe we have a top tier investment in the Lithium space and the current "lull" is purely a timing issue based around the current sector sentiment as well as the financing being completed "by the end of the year". Vulcan pushed back the closing out of the financing for the Lionheart project to allow them to be eligible for more Government grants that are being finalised over the next few months. Ultimately, Vulcan took the viewpoint that the more grant money that came in and contributed to the financing, the less debt and equity funding would be needed. Whilst adding a bit of a delay to the finalisation of the financing, this will ultimately benefit shareholders should they be successful in gaining that grant money.
So, we have a choice.....rotate investments out of the likes of Vulcan to take advantage of potential upswings in different sectors in the short term and then rotate back prior to year end - or sit tight and ensure we don't miss-time things when Vulcan release the financing announcement. I imagine there will be quite the positive reaction to the financing announcement when it comes so I'm choosing to sit tight.....and I don't want to subject myself to large capital gains obligations as well! So, we each have to ask ourselves, is the risk of shuffling around some investments for short term potential gains worth possibly missing the significant potential upside we are likely to see upon the release of the financing announcement? I'm a hard "no" on that one.....particularly if you have a diversified portfolio and already have some coverage in those sectors that have that short term appeal.
Also remember that for every one of those shares that were "dumped on the market" (as you put it) at the end of the trading day today, there was also a buyer!
(20min delay)