The majority of minor construction has been completed and major construction has been scheduled and is set to progress. What a wonderful time to be a shareholder with the opportunity to accumulate at these undervalued (IMO) prices. The s.p has continued to seesaw between 8.8 and 9.2 for about three weeks. The range to me shows great support.
I am disabled with a range of conditions, including degenerative spinal disease, Bipolar 2 and other. I have a great deal of time on my hands and research regularly for the sake of being active and a contributor in what I believe is valid information. Nevertheless, l am certainly not concerned about the current sp and have the patience of Job.
The share price at the moment is absolutely irrelevant to me. Looking forward and leaving behind the former things is my goal. If we went back to 2010, many here would say...shivers, this company is nothing but a pump and dump. Looking from early 2021 onwards, this company has transformed into a massive opportunity for those who dig into clearly communicated achievements, partner alignments, proven capabilities, significant purchases, funding, approvals, offtakes, etc, etc, etc (Yul Brynner, the King and I). Man-o-man I uphold long term holders!
One of my favourite activities is to look forward and beyond the current impediments and status quo. LMG is forging ahead and we have a great deal to progress towards and realistically achieve. I personally like to look at macro events and conceivable opportunities.
One of the aspects of quality business planning and analysis, is to perform a genuine SWOT analysis.(Strengths, Weaknesses, Opportunities and Threats). A true SWOT analysis needs to be performed by a third party in my opinion, to eliminate bias as much as possible. Strengths and opportunities are always easy. Weaknesses and threats that are honest, impartial, balanced and factual, are not that easy to extract.
Tonight, I will again look at an opportunities that are realistically possible. Are delays possible from Covid 19, most certainly. The delays can be an a threat and an opportunity depending upon your analysis. Is the unrest within the world a threat, yes, but also an opportunity. The LMG process is a strength and an opportunity. Zero Co2 is a strength and opportunity. Are delays a threat, not at all given the global supply constraints and evolving EV green market and geopolitical tensions. Remember the magnesium market is forecast by many analysist to double by 2027. Based upon my own research, I think double is conservative!... I could go on, but as a realist, I am bias.
Below are some opportunities that could be grasped and exploited with the right strength...
As I have stated before, the conflict with Ukraine was and is likely to have an impact upon Magnesium supply and prices for some time. We have not yet seen this outcome in price and available volume of magnesium yet, but based upon my research, it cannot be far away.
Remembering also that China is not the flavour of the decade so far, and they have their own constraints with power supply and pollution control, the magnesium market is set for another rapid rise in price and a major deficit in supply, imo. The deficit in supply cannot be met by China if they are constrained by coal prices, domestic energy crises and extensive global pressure to reduce Co2 emissions.
In addition, the world has growing concern for China and its continued expansion into the Indo Pacific and aspirations as the dominant super power.
Ok, lets get to it....
METALS 11 Mar 2022 | 16:28 UTCUS US Revoking Russia's most-favoured nation status as punishment for Ukraine war "The US will revoke Russia's most-favoured nation status March 11 as part of a new round of economic actions to "squeeze" Russian President Vladimir Putin for the war against Ukraine, President Joe Biden said."
"Revoking Russia's most favoured nation status would raise duty levels for metals products, including unwrought aluminium, pure magnesium, magnesium alloy, nickel, zinc and ferroalloys.
If the US is serious about sanctions, the USD$18.78 Millionof Russian Magnesium imports (Remembering that this value was 2020) the value will also be extended to 2022 onwards. It would be realistic given a bit more time that the USA may ban Russian magnesium completely.
Russia Exports of magnesium to United States was US$18.78 Million during 2020, according to the United Nations COMTRADE database on international trade. Russia Exports of magnesium to United States - data, historical chart and statistics - was last updated on March of 2022
Carmakers face soaring metal costs with Russian supplies at risk "So what happens from here?" asked Carlos Tavares, chief executive of Stellantis (STLA.MI), the world's fourth-biggest automaker, when speaking to reporters last week. "First, what happens is that we have an escalation of cost that comes from raw materials and energy that is going to put more pressure on the business model, "he said.
March 8, 202210:49 PM GMT+11Last Updated 20 days ago
China’s domestic primary magnesium industry has entered a period of structural change "China’s domestic primary magnesium industry has entered a period of structural change, driven by the strict implementation of government policies aimed at achieving the country’s ‘Dual Carbon Policy’ targets of peak carbon emissions by 2030 and carbon neutrality by 2060. As a major emitter of carbon dioxide (Scope 1 plus Scope 2), China’s magnesium industry will not escape scrutiny."
"China’s energy policy rollout is forecast to have significant short, medium and long-term implications for the magnesium industry, with some early signs of change already apparent. Forced outages, higher electricity tariffs and higher raw materials costs have already hit the industry hard over the past year, mostly as a direct result of energy policy implementation. World markets have responded with increasing levels of supply uncertainty and significantly higher levels of price volatility."
In previously thread "LMG Project Progress and Current Scope" The majority of LMG most recent achievements have been outlined. The minor construction has progressed with the majority completed and the major construction has been set in a schedule with Mincore. There is tremendous reason to be looking forward to what may yet be proven and also underestimated. The demonstration 1000tpa plant and then expansion to 10,000tpa+ production plant to me is a fait accompli...
Time will certainly tell.
My regards to all holders.
Ken
LMG Price at posting:
8.8¢ Sentiment: Buy Disclosure: Held
(20min delay)