The most important thing now, is how we as investors respond to this. The best way going forward is to remain solvent. Have cash to last 6-12months until this reverse. Have the cash to catch more if this go lower. Here are my reasons.
The SP is now equal to early 2016. Galaxy then was nothing more than MtC restarting. There was 200m debt. JB and SDV was nothing but deposits. Nothing was known. Galaxy now cannot be worth less or equal to when it had nothing.
Today we know JB is 4 times the size of MtC and SDV has been measured. It's no longer speculative. Both assets have government of origin supporting development. There are people wanting to invest in both. There is cash equal to 5 years of net production profit. Repeat 5 years profit at low contract prices and no debt repayments.
The EV and energy storage age is just starting, every autos are trying to compete. Battery and chemical supply is crucial for this to happen. The current world supply is not enough.
World governments are pushing for air quality mobility and energy storages, as full and backup systems.
The auto, road system and oil industry was built in 10 years. The EV industry only need chemicals and batteries to replace ICEs. The roads and vehicles industry already exist. The computer to drive vehicles are already there. The transition over will not take ten years like last time. 30-50% now have preference for EVs. The rest are holding on to their ICEs until time to change. The crossover is 2025-2030. In 2-3 years, cost of EVs will be parity to ICEs at point of sale. The autos are shutting down their ICE departments and building EVs. How many think they will go back?
The year before Kodak went bankrupt was the most profitable. The following year film development and camera was higher than digital. In today's term, thats 2021-2022. Like the old cameras, ICEs will remain in the system but not logical to keep using.
The fall in SP has a direct link to the CEO. The company has under estimated the shorting, they have not responded accordingly to share value. The CEO has not been on top with day to day operations. He's been on the road and in negotiations. In 2 weeks he will pass responsibility. He may have been tapped by a major shareholder to step aside.
Its very possible the company is in talk with a partner to obtain ownership in a converter. The spodumene is already there, partner with a converter and split to profit. This gives both vertical integration.
SDV and JB will be built. The demand will make this happen. The details are under negotiations.
The SP will be higher. The available mineral and chemical supply is below demand. The big four producers will not sell below cost. Only those end users with supply will remain.
Nearly all spodumene from OZ is going to one chemical producer(ganfeng). Who is supplying the other converters.
Some posters need to stop communicating with MS, CS,Mcbank etc short sellers. They are on the forum.
The company need to tell shareholders what its doing instead of playing with words. The banks are there to make profit any way they can.
The shipping maybe a strategy with customer to limit supply against battery makers pushing down chemical prices. They stand to make the most profits. Chemicals have shelf life, produce them only if the end user pay a fair price. No chemicals, no batteries, no order completed, no profit. Battery orders will go elsewhere, the autos build their own supply chain.
#benchmark will be talking to Washington again over metals securities this week. Ausbil will stand to profit the most. Their 9% is to pinned shortsellers from hetting out.
Billions are already allocated to EV infrastructure, if the mines close, those industries will suffer, including banks amd governments that have spent.
I invest in lithium because blackberry is gone, film cost more than taking a picture with my phone. Videos and music for free. Change is very quick.
Invest according to your financial situation.
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HORROR...!!!
