We know some things. We know that China is suppressing the price of lithium. We know that lithium demand over the next 5 years will increase. What we don't know is will demand outstrip supply? If demand does outstrip supply the price which is currently suppressed will spike. What we don't know is spike by how much. Mid teens? Mid 20's? That's the target for Thacker Pass. Mid 30's? that's what LKE need. We have seen it go to $80 so mid 30's would not be an historic anomaly. I think the power supply is quite straight forward. A third party will string up some wire along the side of the highway that leads to Kachi. This will happen if the price stabilizes at mid 30's but it won't happen if the price remains low. There are a couple of things in LKE's favour since the DFS they announced that they were getting better grades and Lilac announced that the beads were becoming more efficient. Both these things could push profitability from the 30's to the high 20's. All that aside I have lots of issues with LKE management mainly around the Chair selling shares and the appointment of a $500K CFO after the market had crashed.
LKE Price at posting:
3.4¢ Sentiment: None Disclosure: Not Held
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