I think I have found the answer for Joe's comment.
" GXY is likely to be the second or third global lithium player"
Also how smart and good mamagents we have (gxy & gmm ) for advancing to Sal De Vida and James Bay production asap to move further ahead of many other project lithium miners.
Not to mention HK listing will push already best positioned GXY a lot higher with massive chinese money support.
I am very bullish to see 60c very soon.
Sorry.. I should have added "I believe".
Please read through.
Lithium isn’t a bubble, it’s a fundamental change in energy usage.
MidasLetter
Friday, Jun. 3, 2016
"Experts" are warning that lithium is in a price bubble. Nothing could be further from the truth. istock.com
Lately the tone of coverage in regard to the new bull market in lithium has turned cautionary, with a growing chorus of experts warning that lithium is going to be a “bubble just like other bubbles.”
But the price jump in lithium — catalyzed by statements made by Elon Musk, CEO of Tesla Motors in reference to an accelerated demand for lithium by his company, and certain unnamed Goldman Sachs analysts (“it’s white gasoline”) — is actually the result of a maturity in our collective acknowledged requirement to leave the hydrocarbon era in the dust.
The evidence demonstrating an anthropological influence on everything from weather patterns to ocean temperatures to aquatic biomassol impels our yearning for a better solution to the combustion engine and coal-fired power plants at the base of our energy consumption. So we shouldn’t be the least bit surprised that the solar, wind, and tidal power that are replacing dirtier power generation schemes are going to need efficient forms of storage for the transformation to electric power.
While the price of oil edges higher to reflect the fact that we still consume 90 million barrels of the stuff per day, there is no denying the fact that successive generations are inheriting bigger atmospheric and pelagic problems. Thus, while the spark that has been lit under the price of lithium is indeed the result of promotional influences on financial players, it’s not one that once begun will subside or reverse course.
But more importantly, the new would-be lithium suppliers — those now hundreds of junior companies laying claim to anything that has a potential lithium content — while plentiful, are not in danger of offsetting the rapidly gathering demand explosion for lithium any time soon.
Consider the example of Canada Lithium, one of the first to race to new production, which despite overcoming an utterly indifferent capital environment throughout 2011/12, managed to finance and build a lithium operation to process hard rock, lithium-bearing pegmatites in Quebec, only to find that the assumptions that went into the design of their processes were flawed, and the mine went bankrupt in 2014 without achieving commercial-scale production.
Two companies that have obtained off-take agreements with Tesla — Bacanora Minerals and Pure Energy Metals — are attracting great investor attention, but they are proposing to produce lithium from hectorite; lithium bearing clays that are nowhere in the world currently a source of commercial lithium production. Bacanora recently announced a US$11.2 million financing by Blackrock, which suggests a level of confidence in the viability of Bacanora’s ability to turn its feasibility study into a producing mine.
In Australia, Blue Ocean Equities helped Pilbara Minerals Ltd. raise over AU$100 million to put its Pilgangora spodumene into production. This is the same source rock that bankrupted Canada Lithium.
Feasibility studies, it should be noted, often do not result in profitable mines, and so while they are crucial to achieving a certain level of confidence from markets, they are by no means the final word. Often that is the result of commodity price fluctuation between the publication of the study, and the construction of the mine, that might not only affect the mine’s mineral value, but can radically change the economics surrounding the materials that can go into a mine’s construction.
So yes, there are a good many projects underway to try and meet, at least in part, the growing demand for lithium but there’s not nearly enough lithium being put into pre-feasibility studies to offset the imminent demand explosion that will materialize in the next two decades.
Other market naysayers suggest that lithium will be replaced by a better technology. At this point, however, the leaders of the intellectual pursuit of better, cheaper, faster indicate no such substantive development is in view.
Even with new technologies inevitable at some point, it will take a long time to displace lithium-ion batteries once they are the dominant energy storage technology for cars and power grids.
James West is an investor and the author of the Midas Letter, an investing research report focused on Canadian markets. The views expressed here are his own and are presented for general informational purposes only — they should not be construed as advice to invest in any securities mentioned.
James West and/or associated funds do not own shares in any securities mentioned in this article. For the full Midas Letter disclosure policy, click here. Postmedia and Midas Letter have a revenue sharing arrangement.
I will try not to call share price without sufficient backup.
( i wanted to make some good mood in this forum as happy feeling is good even in red days)
Apologise for those who feel bad about my post.. including people wanted to buy back cheap and short.
Even if i sold out gxy shares, i do not do down ramping.
2days ago, i switched to gmm shares to get more gxy shares later.
Anyway...
GO GXY.!!
GXY Price at posting:
48.0¢ Sentiment: Hold Disclosure: Held
