i will ask you a question in response to your question ,
was FMG good value at $2.50 in 2014 or good value at $1.50 in 2015?
I sold GXY in August 2017 for $2.20 thinking it was getting over valued that was just before the POSCO deal and lithium prices rocketed up, but when the POSCO deal was done and lithium prices starting to retreat , i thought $2.70 is under valued with so much cash in the bank, lowest cost producing mine in the world and Best brine asset in the globe with 40 year mine life and AT was about to come up with the JV for the SDV project (which obviously did not happen)
so at current prices in my view GXY is super cheap and i did not think that about FMG at $1.50 with 6 billion dollar in debt and COP higher than price of IO.
Lithium prices are at record low and unsustainable. Supply is getting crunched with no new exploration, juniors/high debt and high cost producers are going bust this will be like just another commodity like crude oil, iron ore, coal, zinc, etc etc.
Lithium demand is in its infancy and the biggest of all down rampers do not argue that , with no new supply coming on line these low prices of lithium is only going to work like a rubber band getting stretched for the share price of companies with no debt, plenty of cash and low cost producing mines.
All my opinion of course, but historical price cycles of other commodities (Iron ore, coal, crude oil, zinc etc) is a good indicator on what happens when the prices are super low.
