Could Tesla be pushing extra hard at the moment to support spending to get deeper in to the battery metals production stream? Either way, more cars means more minerals & battery prices are falling all the time.
It’s been seen that even a doubling of mineral pricing would only affect battery pricing by a few % now so the cat might be just about out of the bag & auto maker shareholder groups will start to make noise about that- prompting a greater focus on actually producing EV’s.
One of the world’s top miners, Rio Tinto recently announced that they are going ‘all green’. Being a bit smaller than BHP I see that as a move to steal a march ( get a head start ), on BHP by moving in to the new world faster. Most importantly is that they are seen to be doing so as there are now some strong investor action groups demanding green investments.
Now to the above post & some general talk-
Nothing reported because there’s no need to. As long as the spin off & the core business goal of bringing the WA assets are moving forward then everything is ok.
When we do see a lot of announcements often they are being put out to entice/satisfy the market or to justify a CR when cash at hand or projected usage thereof hasn’t been handled as well as it could have been.
A peer’s announcement this week is a perfect example of the latter- ultimately it was a case of ‘hello market, we need more money & we need it earlier than was projected’ to which the market replies ‘ok, what do you need it for & what have you got to show for the money we gave you last time?’
The announcement at such a time is the answer- ‘here’s what we have done & here’s where we are. Please consider putting money in based on this’.
I share your frustration at the share price as does anyone who holds but this is when I seem to learn the most about the way the market works. Nickel & cobalt being good examples- projected demand is huge but until people see a nearly imminent need for new supply the retail panic buy button doesn’t get hit.
This is the dawn of a new era & one key feature is that non miners ( battery & auto makers ), are getting closer to the mines than they have before which means it’s going to be a slower than usual process of us little guys ( market cap, not deposit size ), being bought up/invested in & openly supported.
Automakers/battery makers are learning as much as many of us here are & that takes time. Once they understand how pricing of mineral assets etc really works they will make their moves. Until then they do what all people sitting on large piles of treasure do- they jealously guard them.
We retailers don’t control share prices but at this end of the market can certainly help to nudge it along & when we see fast price rises we all rush to get on board.
Times like this are also when I learn the most about how I react to conditions. When prices are high I don’t use my brain as much- I’m too busy whistling a happy tune.
Director renumeration concerns? They are the big names dragging the small end of town toward what we retailers see as big goals. For this particular company it’s hard to hassle them because by putting in their own money in such a big way they are ultimately working toward the team goals as opposed to earning money. A couple have probably put more money in than they have so far earned here & one or two of them most definitely have- they’ve put in quite a few times more than they have been paid.
To me that is the most sincere display of their confidence & belief that the projects are progressing & will reward the shareholder. They are shareholders just like us.
I posted on a Saturday! Maybe it really is the dawn of a new era.. ( wink to those who know my pattern of posting ).
(20min delay)