News: PLS Australia shares end lower after long holiday break; growth concerns weigh, page-6

Lithium has an oversupply issue you say, WOW, did you not read the last announcement, the contracted price is still rising. So the Spot price has come down a little, so what it couldn’t keep going at that rate forever. So a couple of investment houses have timed the tiny fall with big headlines, do a bit of shorting and coordinated selling and the simpletons think it is the end of the world.

Anyone who has been around a while has seen all of this before many times. It’s how they make money. You watch they will play this out for as long as they can and just before the quarterly comes out those oversupply issues will magically disappear and they make their money on the way up again. You would need nerves of steel to survive in this sector over the last 10 years. Most have not and will not make it.

I have to admit I backed GXY over PLS and got it dead wrong. Still looking very healthy sticking with GXY/AKE, buying the many dips over the last decade. But missed a bit here. All long termers know how all this works and use these opportunities to load up not sell out. Sure this may not be the bottom but I used today to load up on PLS in my retail account as my super is already maxed out on PLS.

EV’s and lithium are still in their infancy. I can just imagine all the Downrampers telling their grandkids in years to come that they could have bought PLS/AKE etc for x amount. Regret is a bitch, patience a virtue.

And back to oversupply. The best I have seen is an oversupply of 2000t, which is obviously nothing and that relies on a 40% rise in new supply. Tell them they are dreaming. We all know how hard it is to bring on new supply even for expansions let alone whole new mines. These days will be looked upon as a blessing for anyone with a bit of spare cash.