Buy in fear and sell in greed. AKE was going along nicely until this merger which may or may not go ahead. If it merges we may see a sugar hit and many exiting the doors.
Anyone remember A40 which was going to be the next big lithium miner well they went belly up.
PLS is a safe stable company where they know what they are about and do not make stuff ups.
Lithium will be low for at least 2 years due to far to many mine expansions and new mines coming on line. The same thing happened with iron ore back in 2007 where many new iron ore companies started to emerge and the price dropped to $50US/T and then Atlas Iron and co all went bell up never to be seen again and then the ore price started to climb.
I see the same thing happening with lithium where there is to many mines now and its why the ore price is so weak. As the ore price gets lower the junior miners will be in trouble and they'll likely go belly up too due to their cost prices which will end up being higher than the ore sold price is.
Its a good thing. Longer term the smaller players will disappear leaving the big boy sin charge then the money wil roll in even faster as the lithium prices go back up.
AKE Price at posting:
$8.50 Sentiment: Hold Disclosure: Held
