Guys, to be honest, I wouldn’t be too concerned if another Luni...

Guys, to be honest, I wouldn’t be too concerned if another Luni is found by another company. In fact, the demand for niobium will only increase due to the future uses of niobium in battery technology and increased EV usage.

Without increased in supply, carmakers will lack the enthusiasm to bring this mass adoption of niobium batteries into the mainstream EV market. The incentives will come in the form of more supply.

Should we be concerned that more Lunis will suppress the future growth in the price of niobium, or completely destroy it? Well it is possible, just like the sudden increase in lithium production over the last 3 years completely smashed the market and drove low cost producers out of business. But it will be temporary. Remember, grade is king. We will be the PLS. If these other guys found more Lunis look-alike, they could become LTR, AZS, WC8. The ones who only manage to find low grade niobiums will be CXO and LKE.

We will continue to pump cash like PLS with no debt after 2-3 years of paying it off. They will be stuck with long term debt due to higher costs of producing niobium from the low grade ores. They crash, we thrive. The supply-demand will re-balance and end the temporary price suppression (if that ever happens), and off the train we go.

Happy ANZAC Day and GLTA!