Sections of particular interest from the article (not a new article I notice):
"While demand growth is happening and gearing up, I do not believe the market will be tight for some time. Earlier this year, a top Li industry consulting firm, TRU Group, forecast that, due to the current recession, the market would be in oversupply through 2013. TRU does not see a tight supply/demand until 2017 to 2018. And how do we know those will not be mines in Australia—close to massive Chinese consumption? In fact, China is already signing JV deals over in Australia (e.g. Galaxy Resources Ltd. (ASX:GXY)). If you are serious about wanting a likely Li producer, I would look to Australia Li companies. The capex (>$150 often) and lead times to production are onerous burdens for junior prospects to overcome. I believe very few North American juniors will make it to production in the next five years."
"Chile and Bolivia dominate current and likely future supplies. This is a major risk to the development of North American deposits. Moreover, North America does not have nearly the demand growth that China does, which China can supply from Australia."
i.e. Galaxy. Expecting Galaxy to pass through $1 and more now with the plant almost operational.
Good luck all
GXY Price at posting:
30.5¢ Sentiment: ST Buy Disclosure: Not Held
