ASM spun out of ALKane Resources in 2020. ASM is predominantly the massive Dubbo Rare Earth and Critical Minerals Resource and has a processing plant in Korea. Prices for these commodities went sky high during the 2021 Covid lockdowns as there was no global supply with the ASM share price following the prices up, combined with the excitement and hype regarding clean energy, ev's and ev battery stocks.
Post Covid lockdowns to today and real life is back. The hype re clean energy has all but gone, the supply is back, these commodity prices have come down hard except for hafnium, company is finding it hard to find customers who want our future products and it will be difficult to fund the Dubbo mine build.
The massive Dubbo Resource has the potential to be a super mine similar to Roxby, but I guess we may have to wait for Clean Energy to come back into favour for the demand and Rare Earth / Critical Minerals prices to rise again. For example: ASM do not have lithium, but lithium prices have come down from $86,000 tonne 1 year ago to $13,500 tonne today.
The self fulfilling nature of commodities of high prices reducing demand and increasing supply as new mines open which causes the prices to fall substantially. That then causes supply to fall as mines close and demand to rise as prices are cheap, which in turn increases the prices again.
All in my opinion only.
ASM Price at posting:
$1.21 Sentiment: Buy Disclosure: Held
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