Lithium finds its bottom, says Sprott Mining July 22, 2024 |...

Lithium finds its bottom, says Sprott
Mining
July 22, 2024 | Cameron Drummond

Market machinations have not been kind to lithium (Li2O) as prices gravitate to new bottoms. No need to fret though. Guess what tends to happen when prices sink significantly?
Mines cut production on bad price forecasts and development dries up. Then, prices bounce back into some scope of parity due to a lack of supply and increased demand – cyclical ebbs and flows.
While it still might be hard to parry favour with investors at the moment, analysts are making the case for lithium once again.
Global resources asset manager and analyst Sprott reckons negatives for Li are short-term, as it sees a lift from the spot price falling 13.57% in June down to US$5.71/lb (US$12,560/t) – its lowest level in over three years.
“With lithium destocking relenting and mines cutting production, current prices are unsustainable to incentivise investment in required future production. As such, we believe this may form the new bottom,” Sprott’s analysts said in their note.

Lithium finds its bottom, red metal gains and nickel waits, says Sprott - *