Pilbara Minerals is the most shorted stock on the ASX so their position with AZS may be a defensive hedge rather than trying to get a strategic stake.
Market Index has them at nearly 20% of their stock being shorted. Ouch!
AFR notes the lack of options to short lithium, making PLS the most liquid and pure play form of exposure: “There appears to be a component of the market that wants to short lithium pricing and given that there’s no available mechanism to do that, they have gravitated, ....to Pilbara as a proxy for the lithium market because of our scale, pure play exposure and our liquidity,” said Chief Executive Dale Henderson. So AZS is seen as a safe place to park money by a Li company under attack.
Market Index asks:
"Will we one day see a major turnaround for lithium markets and an almighty squeeze for Pilbara Minerals?"
Either way I don't mind because it shores up AZS as a safe bet.
Meanwhile PLS is up 4% today.
Interesting times!
PS watch Money of Mine YouTube video on Mr Lithium Lowry on why Li pricing is a furphy! It's a chemical product and the pricing is depressed due to lack of demand for Chinese Li and inferior sources. AZS Li is the bee's knees in contrast.
