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78.0¢ avz minerals limited

Shortages starting in a few years and likely looming sooner than...

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Sammael

817 Posts.

229

13/04/21

17:32

Post #: 52437954
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Originally posted by Weindryn: ↑

Definitely agree that there will be prolonged lithium demand increase and boom over 10 plus years.

But that's not how the demand and supply will work for the pricing of the commodity. There is a large amount of extra supply that can be turned on if prices get high enough (fast than AVZ can build a mine) and then if AVZ turns on this mine, which will potentially be the biggest in the world then there will be a rush of supply. Prices will not be in an upwards trend for 10 years and the faster they go up the quicker they can fall as everyone tries to cash in and floods the market.

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Shortages starting in a few years and likely looming sooner than expected suggest a strong sellers market for the foreseeable future. One wouldn't expect dips to reach past lows in this scenario.
So I think your point is valid but unlikely.

AVZ Price at posting: 18.0¢ Sentiment: Buy Disclosure: Held
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