I am still holding my LTR shares tightly, even tighter than ever, becuase it is getting better and better.
Btw, I don't care about recession. There is no recession for the EV market. Lithium and battery cell production deficit is getting bigger and bigger.
I know the financial markets are very choppy but most of it is because of extreme manipulation.
The manipulation of big boys are in extreme levels. They use everything; the media, research houses, even the governments. They create wars by causing crises between countries. Anyway they are evils.
They created a war between Russia and Ukraine. It was not enough...
The they created a recession fear without putting the right facts.
They only needed a lower stock market. Because after the Covid fear in March 2020 they bought a lot of stock assets and market went up like crazy. Many companies went over trillion dolar mcap, including Tesla. The PE ratios of many companies went over 100, even some over 200.
I was saying myself that the stock market was overinflated. The manipulators knew that. They distributed their stock assets at high levels and now will buy at lower prices (not for lithium stock though, they want to get in lithium stocks now).
Now Russia Ukraine war has lost its effect on negative sentiment, and now the recession fear has taken over the duty.
I don't believe there will be a recession. I believe the economies of some countries have been overheated and they need to be cooled down.
There is huge production in many countries in the world, there is employee shortage in many countries including Australia. World population is increasing, urbanisation is on the raise, and a lot more infrastructure is needed everywhere.
The world is full of products and services everywhere, there are even very interesting products and we try to buy them. I am sure most of us are already thinking to buy EVs. Hey just a sec. there is 6 to 12 months que for buying an EV.
So, recession for what?
Is it a halt in growth or a recession?
The US job data announced last week and it was good. Then what sort of recession is that. The definition of recession is also confusing. The "economists" are arguing about it now.
Here is a good read about recession;
"Goldman Sachs puts a US recession at 30%. Here's why that will turbocharge stocks"
"Goldman Sachs has just put its recession stake in the ground. Or should I say, three stakes - one for the US, the UK, and Europe.
Recession, you say? Which sort?
The word "recession" is bandied about, fast and loose. This is to be expected, really, because it has no single definition. For this reason, we end up with confusion like this:
Anyway the manipulators dont' care about the facts. They do their own works for making money.
Manipulation creates fear and confusion in the minds of investors and they forget all the facts, and of course they tend to liquidate their assets.
But, we LTR holders have nothing to do with all these BS.
We can see from all forecast graphs (posted many of them here before) that the lithium and battery cell deficit is increasing exponentially, will even be very high in 2030.
The deficit is already here.
It was about battery grade lithium deficit. I made posts 3 years ago about it.
I said "Not all lithium is equal".
Not everyone can produce battery grade lithium SC6.
My Post #:38651394 on May 20 2019;I said;
- "The oversupply story is not true.
- Not all lithium is equal.
- The low priced and oversupplied lithium chemicals are coming from low quality resources. (Brine mines and mines like AJM).
- Even GXY Mt Cattlin mine (a small resource 12mt) can't supply SC6 ( see below anns on May 13. Spod Concentrate in Q1 2019 is 5.75%)
- For making battery grade chemicals you need very high quality spodumene resource.
- Only a few company can supply that (Tianqi, Albemarle, PLS and Ganfeng)
Therefore a good resource will have a great value."
The battery grade deficit was started in 2020. Now getting even wider.
For example, Samsung supply its prismatic Li-Ion cells made of NMC 8-2-2 to BMW, Stellantis (Fiat) for the last 3 years. Do you know where Samsung get their lithium? From Greenbushes (I've been told), but they never announced a offtake agreement with Greenbushes (Talison Lithium). It's been kept secret as far as I understand.
There are many other secret agreements between big boys. So the
demand is huge.
I will not be surprised when I see spod price around $10,000/t level soon, no later than next year if not this year.
China is very hungry for lithium. This graph shows it all. China will have 70% of battery cell capacity of the world even in 2030.
LTR will make at least $50b revenue and $25b profit after tax by KV project over the life of mine.
A poster here made a very good calculation as below (I forgot his nick, I'm sorry, He has to the credit for this calculation below).
For spod price of $2,645/t, the revenue is $50b and $25b profit after tax.
That is only for the current resource. I am quite sure that our resource will increase at least 30% and will reach to 200mt at very high grade (over 1.6% for the last portion).
So, we will be able to make another 150,000kt offtake agreement with another buyer.
However, my last word is this;
I don't believe that LTR will survive with those very high profitable business project.
From what? You might ask
From being takeover.
One morning we will wake up and see the takeover offer. This is 90% probability IMO.
My best candidates are; 1) BHP 2) Wesfarmers.
So, I don't care about recession. I won't sell any if it goes down or up. I will wait for takeover or production because we have the best lithium resource in the world.
PS: I will explain if it is asked why it is the best resource in the world later on if it is asked.
(20min delay)
