G'day all. Hard to read the threads (let alone post) sometimes when there's a bit of a pullback in momentum, not a lot of news, and then all these jokers come out with absolutely no idea.
Thought it worth noting that I managed to get out to the RSS conference in Melbourne yesterday. Spoke to Simon Coyle from PLS (previous Ops Manager), Ken Brinsden (previous PLS MD), David Richard (MI6 MD and an LTR-founder) and Anthony Cipriano (Mi6 chairman and LTR boardmember) and heard from numerous others. Worth reporting (all IMO):
- Overwhelming agreement (esp. from Ken) that GS/MS are well aware they're kidding themselves and the rest of the market, but serving their huge Oil/Gas clients by reporting whatever they can to discount Li pricing, and also get in themselves at a lower price. Chinese reports also just inflationary/intimidatory to try and keep the pricing down. No material or LT impact likely
- Asked DR about the type/size of resource of LTR and PLS and he was adamant that the size and grade of KV simply won't be repeated if it hasn't already been discovered in Oz (or at least was incredibly unlikely). Brine may fill some of the gaps. Also reinforced just how hard it was to bring on supply, and the time required. As per TO's ongoing commentary. Also laughed at how many explorers are now claiming peg. strikes or anomalies etc. that likely amount to nothing feasible, further distorting the supply forecasts.
- SC was quite a nice guy also (geeze I can't wait till we have the cash coming in that opens up the doors PLS are looking at now). He's super confident on pricing. Worst case (though not at all expected) would be a plateau in the short term, with everyone still making plenty of $$ even if it was cut to a third. Anything else is absolute noise. BMXs are a real indication, and new and more buyers with bigger bids each time. Unfortunately sounds like no more this year, but he wasn't certain. Really sticking to their guns on the need for 18 Pilgangooras to fill the deficit by 2030. Combine that with DR's comments... can't see that gap being filled by a long shot.
All up, gave me great confidence/reassurance that we just need to sit tight and boy are we onto a good thing. Like I said, the potential for growth (in both SP and future business ops) once those $$ start coming is immense, and oh so soon for Core. As far as investing in Li (if you hold a near term producer and/or sizable explorer with good grades) looks like (IMO) the hard work is done, just let time do the rest. And with Core, that's very little time indeed.
Good weekend to all
CXO Price at posting:
$1.36 Sentiment: Buy Disclosure: Held
