We’ll most likely have to wait for the paper traders who started shorting north of $2/lb to make their 2x gain into the oversold territory before the price moves again. My guess is that POZ will lower to close to $1/lb before moving back up mid next year to about $1.30/lb region. LME inventories are very tight yes, but willing to bet there’s plenty still in shadow storage, and the BIG paper trader on the LME has plenty of physical to drip feed into the inventory system to cover their position when required. What we can hope for is LNS to see long term business value in signing a binding contract to provide mining services to the project, with a small equity stake that attracts a bigger investor, and subsequently the binding EXIM loan. There’s still a fair way to go yet. Fingers crossed.
IBG Price at posting:
0.9¢ Sentiment: Hold Disclosure: Held
