What is the cause of the stagflation? Commodity prices.
Who benefits from higher commodity prices? Resources companies.
Which resource companies benefit? Those with high-quality insitu resources (will be bought) and those already in production with strong capital management (will be doing the buying). Lithium has added competition from desperate end-users moving upstream and buying resources directly - we have seen numerous deals, even since Goldman's infamous prediction.
Will interest rates kill commodity prices? Not for long, as the whole cost-curve has shifted up to the point where you need much higher incentive pricing to bring on new supply.
Even Goldman Sachs bearish lithium scenario has LCE down to just over USD$16,000 for 2023 before it takes off again in 2024. HMW Dec 21 feas study uses US$18,594. Original PEA uses USD$11,687, and the numbers are still compelling. HMW is lowest quartile on the cost curve.
Our lithium in the ground ain't going anywhere, until someone makes us an offer to good to refuse.
General Discussion Banter GLN, page-7904
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Last
16.0¢ |
Change
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Mkt cap ! $116.6M | |||
| Open | High | Low | Value | Volume |
| 15.5¢ | 16.5¢ | 15.5¢ | $666.3K | 4.231M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 8 | 644360 | 15.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 16.0¢ | 104536 | 2 |
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