BIG PICTURE!!, page-46

There are self-anointed Li experts popping up all over the place at the moment. Lots of naysayers and 'atodasoas'. I posted this on the LKE thread earlier today in response to someone bragging about how his broker had predicted the demise of Li spec. stocks.

I tend to believe experts in their field rather than 'legends in their lunchbox'. Joe Lowry knows a thing or two about the lithium market. This is what he had to say on the supply-demand balance and pricing a couple of days back. It's well worth reading:

https://www.linkedin.com/pulse/lithium-bad-analysis-rumors-joe-lowry/

Excerpt:

'Pundits with limited knowledge are making a big deal of the potential for oversupply based on: the soon to be announced SQM – Corfo agreement, new projects in Australia coming online and the recent Orocobre announcement of plans to expand and Toyota Tsusho’s equity investment. These items along with the fact that price in China as reported by one media outlet dropped a few percent are taken as evidence that the days of high pricing and tight market are coming to an end. Don't bet on it. The tight market will remain into the next decade. That doesn't mean China prices won't fluctuate wildly at times. Let me spout some lithium heresy: the price in China isn't that important, focus on the price in Japan, Korea and ROW. Before most of you were interested in the lightest metal, we have seen widely disconnected prices before.'

I must admit I've been disappointed by PNN management recently, but I like the company's projects and Li fundamentals have not changed substantively despite SQM's announcement. I bought some more PNN today.