The more I read, the more I solidify my views that GXY is being thrown in the same bucket as all the other lithium producers out there and the market is not factoring in our great and unique position in the market. Ultimately, I think this will play into our favour when sentiment changes and GXY' s value is truly realised.
It seems to me that GXY is moving in lockstep with the price of lithium. (Or more to the point: the perceived price of lithium) Whilst this continues to fall, we are likely to fall with it.
Even if we have the best announcement ever this week, do you think that GXY is going to break the trend if LIT, ALB, SQM, ORE, PLS etc all continue to follow the price of lithium down? I sure hope so, and there is a chance that this might happen but am prepard for more of the same.
So, the question I have been asking myself is: am I comfortable with where the price of lithium is going? And the answer for me is yes. Any significant turnaround probably wont happen this year (though it could as new contracts typically get negotiated in Q4), may not even happen early next year, but i have a feeling that when it does occur, it is going to pop like a cork. It will likely be driven by the EV revolution (see new articles every day supporting this) and huge momention. Once it starts, there will be no stopping it and lithium producers won't be able to scale up quick enough. I believe there will be massive supply squeeze in years to come and GXY will be ideally placed to capitalise.
For all those asking why is the share price going down, this is my opinion. It doesn't feel fair but it helps me rationalise the irrational, stick with my long term investment and sleep better at night!
GXY Price at posting:
$2.33 Sentiment: Buy Disclosure: Held
