The company doesn't need to T/O anyone. It needs to get the resources that it has to market asap. The sale of northern SDV was a good decision. SDV covers over 300sq kms. The company retains all southern tenements. Northern tenements was something no one knew existed.
There is an increase in demand for lithium minerals, any miner dragging its feet is a lost cause and management questioned . Many still don't understand what they have invested in. Many will make and many will lose money. Not downing any anyone but like to give an example.
There is a post on PLS that say they will mine 5mtpa and make $17bil profit, many agreed. To mine 5mtpa will produce only 500kt of spod. At a net profit of $500/t (if they achieve this) is $250m. This is stage 1(300kt)+2(200kt). Stage 1 will not reach nameplate until 4th quarter 2019, when they install 70-75% optimize circuit. The major customer for pls is the same as AJM. AJM is getting between $700-$800/t less cost. GXY is getting above $980/t spod (for making hydroxide) less cost. People see $ sign and lose all logic and reasoning.
Miners at the moment producing:
spod get under $1000.
Carbonate get $14000-$16000.
Hydroxide get $16000-$18000.
Each are in a different niche and cannot be compared to each other.
Posters who seems to be following lithium miners, yet pull numbers out of thin air. Be very careful what you read.
The real profit is converting ground materials into carbonate or hydroxide. This is the basic investors need to understand.
Lithium stocks have fallen from shorting. The real reason is the banks got on board late and they now want your shares. Regardless what shares you own the demand for lithium chemicals will increase, there are not enough miners to meet that demand. Lithium miners have had increased contract pricing for the last three years and will continue in the next three, plus many more to come. The spot pricing the banks use are as bogus as the crooked banks.
Companies don't need deals if the century. They need to be profitable yoy.
The use of batteries increase every year. Battery factories are increasing because its a profitable business. Production of lithium batteries will not stop or slowdown because SP are artificially pushed down.
Mines that are producing need to increase production and mines that are not need to get their fingers out.
If three new mines were opened every year for the next three years, the demand will still outstrip supply. The knowledge needed to make lithium chemicals are not there for mines to increase.
Sell your shares at a lose and regret later is up to you.
There will be no downturn in world market, just a bunch of hedge funds manipulating to scare people senseless into selling. Newspapers make money from selling stories. The world will have more money in five years than now, governments are good at using money printers.
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