Australia's largest stock trading and investment forum Australia's #1 stock forum

AKE

Click for more information

0.00%

$9.83 allkem limited

What should not be forgotten is that should the price of lithium...

First 2533 Last

Share
Profile

Follow
TheOldGuy

490 Posts.

286

16/11/22

03:01

Post #: 64794971
Share

Originally posted by TheOldGuy: ↑

Purely hypothetical:
If these numbers were accurate, which companies would be hit the hardest?
But probably those who have now sold at the spot price, but not Allkem who are still 25-30% below this and whose production is only just growing.

Where would the lithium price go?
That's the question to ask, and then how long would it stay there if EV sales increased?

Let's say the price dropped to US$35,000 per tonne, the very fact of Allkem now ramping up Naraha
would be aincrease in sales by US$ 350,000 million.
Added to this is the doubling of production in Olaroz (from 15kt to 30kt)as well as the production of Sal de Vida,
then James Bay in 2024 and probably also Maria-Victoria.
In addition, I'm counting on another converter for James Bay to prepare the lithium for the American market.

Expand

What should not be forgotten is that should the price of lithium fall much lower,
financing and amortization will be difficult for many projects.
Under such circumstances there would hardly be any investors who would invest in such a market area,
so the conversion to a CO2-reduced world would hardly have a chance and we would be heading for the year
2018 as far as lithium is concerned.

AKE Price at posting: $14.25 Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

There are more pages in this discussion • 2,619 more messages in this thread...

First 2533 Last

Add AKE (ASX) to my watchlist