I have a feeling the drop is in relation to this article below.
It may have spooked a few to sell and encourage a few more to short.
This data is not a good sign along with a host of other data being released recently (such as China EV sales).
I'll say it again, forget fundamentals they don't exist. If you are a long we just have to accept the fact that the price is currently trading on momentum and nothing but momentum across the entire sector. If you believe in the 5-10 year future just keep on accumulating assuming GXY takes advantage of the mayhem at present.
Tomorrow report can play a part on stabilizing the picture as long as the numbers are reasonable. However, as we have seen in many previous reports a section of the community cheery picks the bad and down we go.
Between now and the end of March anything is possible. At the moment you could throw a dart at a dartboard and pick a number and it could be possible.
I never expected in a million years that the price could ever be so fundamentally out of whack and some of my previous posts have already shown how seriously out of whack it is. It is what it is. All we can do is hope that GXY management does not go and accept some crazy TO offer or something like that! As long as they don't accumulate and then some point went sanity returns enjoy the ride back up.
The most important thing at the moment is that we have the cash and we don't have the debt. That is key!
Tianqi Lithium has first loss in 5-1/2 years as lithium prices crash
Tom Daly,
Min Zhang
3 Min Read
* Tianqi has loss of 53.9 mln yuan in Q3, first since Q1 2014
* Lithium prices fall sharply; firm also blames SQM loans
* Full-year profit seen at 80-120 mln yuan, implying Q4 loss
By Tom Daly and Min Zhang
BEIJING, Oct 22 (Reuters) - Tianqi Lithium Corp, one of the world’s biggest lithium producers, swung to a net loss in the third quarter as prices for the battery metal slumped.
Tianqi, which owns around a quarter of Chilean lithium producer SQM, processes spodumene, a mineral mined for its lithium content, into chemicals such as lithium carbonate and lithium hydroxide that are used in electric vehicle batteries.
Lithium carbonate prices AM-99C-LTCB in China, as assessed by Asian Metal, have fallen around 28% year-to-date to 49,500 yuan a tonne amid oversupply. Prices were around 150,000 yuan a tonne in early 2018.
Chengdu-based Tianqi reported a net loss of 53.9 million yuan($7.62 million) for July-September 2019, versus net profit of 379.7 million yuan a year earlier and 82.1 milion yuan in the second quarter.
The result, published in a filing to the Shenzhen stock exchange on Tuesday, is Tianqi’s first quarterly loss since the first quarter of 2014, according to Refinitiv Eikon data. In the first nine months of 2019, net profits were down 91.7% year-on-year at 139.5 million yuan.
Third-quarter revenues were down 17.8% year-on-year at 1.21 billion yuan.
The company had earlier this month flagged an expected slump in nine-month profits of more than 90%.
It apologised to investors for the performance, which it blamed on a foreign exchange loss and lower than expected ore supply from its Greenbushes mine in Australia.
Tianqi’s financial expenses – including those related to loans taken out to acquire the SQM stake for around $4.1 billion in 2018 – rose more than 500% year-on-year in the third quarter,
The company also said on Tuesday it had a relatively large amount of liabilities in foreign currencies. The yuan weakened by about 4% against the U.S. dollar the third quarter.
The company now expects its full-year net profit to come in at 80-120 million yuan, implying an estimated net loss of at least 19.5 million yuan in the final quarter. ($1 = 7.0780 Chinese yuan renminbi) (Reporting by Tom Daly and Min Zhang. Editing by Jane Merriman)
