Good morning from Germany!
It's a bit funny, if not absurd. Since prices for a lithium producer are raised gently, Allkem now at just under AUD$ 16.5, however,
those of a questionable company and its prospects are set much higher ( Vulcan Energy AUD$ 19.5 ).
When or if at all, these experimental processes come to the run, how much actual yield they will generate is all in the far distance.
The DLE process, so eagerly awaited by many, as well as the extraction of lithium by geothermal energy, look attractive on paper, but there are still many questions open with both processes, regarding the productivity stability as well as the actual extraction rates. These questions are not and can not yet be mentioned by the companies and are therefore to be taken with great caution.
The conventional evaporation process is often criticized for its water consumption. water consumption. However, it is often presented as if the water had left our atmosphere after its use and was lost forever. It is in our atmosphere and if we succeed in bringing the climate back to a level where temperatures fall, using renewable energies - lithium and less CO2 emissions, this water will fall to the ground again as if from buckets. If we continue as before, the global warming increases, more water will remain in the atmosphere and not or only very locally, in extreme, return to the ground.
Conclusion :
On the one hand, we have a too much of fantasy and hope, which is forced by the analysts, who seem not to have thought through everything, and who runs after the trend-following investor.
On the other hand, we have steadily growing producers who report new records from quarter to quarter,
provide the world with what it needs, allow the investor yield and soon also dividends.
Producers who continue to grow and thus secure market shares and open channels to acquire further companies or investments.
Who would you put your money on?
After all that Allkem has achieved so far and will still achieve, price targets of AUD$30-50 are not unrealistic for me but, a question of time, when the analysts will also announce this.
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