Well it is my 500th post I am very excited. Excited for a number of reasons.
1. As reported by @Stewart18 on the 22/1 spod prices have finally returned to a 360 day high. This is a very important milestone for the future of this company and all spod producers. With demand at a point of no return prices of the past are not to be seen again and as long as the AUD does not do something overly stupid, cash flows going forward will get stronger and stronger. While this was going to happen anyway, we really need to thank PLS (also a holder) for taking out AJM supply. That was and will be the key short term reason spod prices move quicker higher in the right direction.
2. Spod pricing now ahead of forecasts. Now different sites have different prices, but from what I can tell as being the most accurate in relation to GXY, thanks to PLS removal of AJM supply we are already ahead of the forecasted curve. If this continues, and my belief it will, then those working on assumptions based on forecasts will need to rerate. Pricing will go higher quicker and will probably stabilize at a higher point when new/removed supply comes back on line. This is great for GXY's cashflow to support the companies growth prospects. End users for GXY spod are building up battery capacity as we speak. They are lithium hungry.
3. A share price above $3 and moving higher, something that in itself puts a smile on holders faces.
4. Some great news story confirming the future of the sector and demand. Simon Moores https://www.benchmarkminerals.com/membership/the-battery-raw-material-class-of-2021-prices-rise-as-ev-upturn-and-commodity-supercycle-loom/ outlines “For this suite of battery raw materials, China acts as an early warning system for the rest of the world.“Historically, price rises that occur in China are usually experienced in the rest of the world 3 to 6 months later.” Joe Lowry also has a good interview with a Morningstar analyst https://anchor.fm/globallithium/episodes/Episode-92-Seth-Goldstein-epb5lv. The sector really is at a point of no return and momentum will build quick from here. As a result I have spent the last few weeks throwing gambling dollars at upcoming lithium prospects because with the tide that is coming, everything will be going for a ride. There will be ups and downs, but the optimum time to accumulate is over, now its time to make money. Generally speaking, if you have not purchased stock yet FOMO should be on the back of your mind.
5. January data out of China suggests the January auto sales will continue to be positive with 21.6% YoY growth (this is all auto so EV would be higher) - Moneyball twitter 22 Jan. With 2020 data complete the story that unfolded, and that will continue bodes well for our sector. Looking back at my estimates from an older post I see they played out as expected. I have also put out my estimates for 2021 (the green line) which should be easily achievable considering the ever growing EV production capacity growing in China removing ICE capacity. Should the green line be hit month after month think about all the extra lithium needed. With Europe's CO2 restrictions even stronger EV sales will dominate.
6. After my last post we found out the hidden reason for GXY's credit raising. While the cash is good for SDV/JB the real reason was that they were going after A40 again. This looks like one hell of a battle. Reminds me of one of the seasons of "Suits", season 3 I think. Rewatch that and you can see how nasty and how deceptive and manipulative these takeover games can be. I will remain neutral on this until we find out more. If you are an analyst on the upcoming conference call, I think you should ask them some questions in regards to this. I would if I could.
7. I spoke about this in my last post, but SDV/JB plans are ramping up. Hopefully we will hear some grand plans and updates at the quarterly update. Good news is just a ticking time bomb away, and will leave more to say about that when the news breaks. With all of the above in play the need for SDV/JB is growing by the day.
