A lot of people always revert to playing the man rather than the ball and choose to ignore the market conditions that has prevailed in the last couple of years. The reality is that the Lithium price per tonne has fallen steadily through Chinese manipulation in the physical & futures markets . Also markets commentators/so called experts have also aided & abetted the decline in market sentiment and raked in the $$$ through their shorting & futures trading -- ( Conflicting interests 101 -- YES) and all of these activities together with increased production with more producers coming onstream has led to an oversupply and lower prices.
However if we look backwards we can see that no commodity price goes in a straight line , up or down . Therefore the only way producers can influence the Li price to move back up to a level that will benefit both sellers & buyers is to reduce supply to the point where demand will exceed supply once again. Many suppliers , both from brine & spod , have started to reduce production or place projects on care and maintenance.
The powerhas now moved to the producers as going forward demand will continue to increase steadily.
Given what transpired with market conditions I feel that AGY has made the right decision to stop production, reduce costs and work on the rectification process in the meantime and also prepare for future expansion. Nothing wrong with that at all , in my view. Also lets not forget that the main point here is that AGY/Pablo has proven that it can produce high grade (99.5%++) LCE and production issues were purely mechanical , which will be rectified during this current period.
AIMHO, DYOR
AGY Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)