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..."The analysts' assumptions are always based on the same two...

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06/10/22

18:52

Post #: 64070215
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Originally posted by TheOldGuy: ↑

The analysts' assumptions are always based on the same two basic assumptions.

1. an emerging oversupply of lithiumThis is mostly based on the assumption that the DLE process would provide an enormous boost, but so far it has not contributed at all. Secondly, the assumption that all explorers will ramp up to maximum production in the given time, which I think is more than optimistic.

2. on the assumption of a prolonged recession.The industry would be depressed, purchasing power would dwindle and unemployment rates would rise sharply.

Yes, the situation is not exactly pretty, but I do not see any reason for a prolonged recession. In many countries of the world, interest rates have been so low for years that many people have bought houses that they could not have afforded at normal interest rates. This game or Zock continued down to the small loans, where you had to pay back for an amount up to 1000 € only 930 €. It was basically a discount on money!?

By buying bonds, many over-indebted countries have been kept alive and their unhealthy lifestyles further promoted, moreover, by a too late intervention against inflation itself forced. Now one tries the egg dance on the razor blade, inflation fight without stalling the economy and every twitch of the central banks lets the investors jump into the trenches.

On the other hand, we have the oil and gas suppliers, who now make their last breaths and know exactly, thus quickly want to fill their pockets again and corresponding to this (see OPEC) artificially increase the prices and thus the inflation again heat up.

On the other hand, the structures for EV's are nowhere in the world at the level or so far developed that customers can really be sure to find a charging station. This is also due to the fact that the manufacturers have not yet been able to agree on any standards, nor have the providers of charging stations. I don't know how it is in Australia, but here in Germany you need a folder with cards to be able to charge everywhere, which always reminds me of the old slapstick movies where someone unfolds his 20 credit cards and asks which one it should be.

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..."The analysts' assumptions are always based on the same two basic assumptions. 1. an emerging oversupply of lithium This is mostly based on the assumption that the DLE process would provide an enormous boost, but so far it has not contributed at all."

Yes TOG, it now seems, that even Uncle Joe, agrees with you, about the 'prospects' of the much touted, ...'DLE solution' and he's just about as desperate, as anyone on this entire planet, gets, right now, to throw buckets of US Govt money at anyone, or anything, that can offer to bring the US up to speed, to match China's 20 years 'plus' lead in 'Lithium-everything', upon Uncle-Sam...!

What a shame...! Looks like we, will just have to keep on, ...PRODUCING our own, Lithium from Brine, for even longer, ..hey...?

HOLD 'em ..TIGHT, Folks...!

AKE Price at posting: $14.29 Sentiment: Buy Disclosure: Held
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