ASX Today, page-43422

Good to see this stock performing well today despite the short sellers trying to influence the SP this morning and at close, but we prevailed culling back a good chunk of yesterday's drop. Realistically there was no reason for the drop yesterday considering the GFEX futures closed positive, only short sellers capitalising on hysteria perpetrated by the media on really irrelevant news that's already priced in. I wonder why the down-rampers are so silent today? (*rhetorical*).

Well done to those who managed to purchase during the dip yesterday and hold steadfast to their research and underlying belief in LTR. These prices won't be around forever and I think the outlook from here is quite positive. We are currently trading below book-value and the future earnings of this company aren't even factored in to the share price, it's absurd, but good for those that are accumulating.

Earlier in this thread today, the market cap of PLS ($9bn) was compared to LTR ($1.8bn)... And I totally agree that LTR should be a lot closer to PLS, especially as production ramps up to full output, but let's not forget a few things, LTR can produce higher-quality SC6+ spodumene and pivot with the market, LTR also has ambitious plans to add to the value-chain by integrating downstream processing to create important battery chemicals such as lithium hydroxide and/or lithium carbonate, LTR can still engages in exploration and also purchases other projects in the future as we generate positive cash-flows. It might not be too much of a stretch to say that one day LTR may actually be a bigger company than PLS.

We finished September 2024 with a strong recovery in futures and spot price, you can expect this trend to continue next month in October 2024 too.

This is all from me for now, but I will leave you all with an extract (below) from an article published today in SMM which explains the movement in futures and spot price pretty well.

I hope you all have a great weekend ahead.

Cheers,
CK

TITLE:【SMM Analysis】Beginning to Reverse?! A Review of This Week's Lithium Carbonate Spot Price Trends (2024.08.26-2024.08.30)

"After a prolonged period of price declines, spot lithium carbonate prices have finally turned upward. Downstream material plants and battery cell manufacturers are preparing for the traditional peak season of "September-October," significantly increasing production schedules. On the supply side, under the pressure of previous losses, some lithium salt smelters have continued to reduce production, leading to a sustained decline in overall operating rates. In the context of reduced supply and increased demand, lithium carbonate has experienced a long-awaited weekly inventory reduction. This positive sentiment has led to varying degrees of rebound in both lithium carbonate futures and spot prices. In the short term, if the downstream material plants and battery cell manufacturers continue to ramp up production and the lithium salt smelters that have reduced or halted production do not resume operations, the domestic supply of lithium carbonate may remain stable, potentially providing some support or slight increase to spot prices.

It is worth noting that although the monthly surplus has narrowed to a tight balance, attention should also be paid to the cumulative inventory of lithium carbonate. From a long-term price trend perspective, the actual supply-demand relationship should be the main guiding factor. Stay rational!"