Zinc, if anything, highlights exactly why short term thinking is pointless when investing in mining. Yes, there will be some easy money made by shorting stocks, or run-ups. Lithium demand has barely started, and like most things there were many thinking they'd get rich in the first couple of years of expansion. Where the real profits lie is sustainable long term production. Look at iron ore, and the players that have had long term sustainable production. Have you seen the current BHP and RIO annual dividend yield? Over 4% fully franked from a mining company that you could have almost DOUBLED your capital growth on over the last couple of years. Why? Due to nothing more that short term trends and market sentiment. This isn't something that can be ignored, and long term reliable production will allow for huge wealth generation with these types of companies in lithium. The large well funded companies with well managed debt will be the ones that reap the rewards here.
DYOR etc.
GXY Price at posting:
$1.49 Sentiment: Hold Disclosure: Held