Ann: Quarterly Report - December 2018, page-197

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stevo 111

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24/01/19

19:54

Post #: 37217015
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Originally posted by catz987 ↑

Originally posted by RBradley1980
This is very important because it is an acceptance that lithium is a commodity and will behave like a commodity by GXY management. The amount of times I have seen flawed analysis presume that because X company has Y specification contract it will be less effected or unimpacted by a broad market downturn has been ridiculous.

Even mature markets like IO, oil, coal and copper have these cycles as supply attempts to meet demand and often overshoots, so it is obvious that lithium will continue to experience these same cycles however given lithium is immature and growing strongly the cycles will be more volatile with greater potential for both over and under supply as the entire lithium battery supply chain builds capacity.
thx RB for your thoughts. Can we say that -

1. In the near future, there's not enough $$ in Lithium and .... GXY hopes spod price will find a floor .... GXY share price will not get bid up by the bulls .... but cash will be less available for the new starters (I wonder if SDV, and JB will get $$)

2. Lithium demand may increase or decrease going forward past '19 which will change the economic landscape.

3. The report seems to suggest a positive bias, yet, China being kind-of socialism, it may control prices through political means, and btw it just happened to the CN pharma big boys which cut out ~ 50% of their share prices from recent highs.

4. It sounds like the Lithium hype has passed.

What do you think ?

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Jeez, I’m not sure whether to suggest taking the tin helmet off your head, or just carefully placing it back on and plugging it in to a socket with enough power to restart the old thinker.

Best of luck in the big blue yonder.

GXY Price at posting: $2.10 Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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