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$2.67 pilbara minerals limited

Legacy auto are swimming against the tide, like shorters. BYD...

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dfs1

6,886 Posts.

4165

30/01/24

08:42

Post #: 72124766
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Originally posted by dfs1: ↑

3 different companies in partnership. Their objectives probably don’t all align exactly. This outcome probably is a compromise. We won’t know what each party actually wants.

Things that stood out.

Going back to a 1 month pricing mechanism, which is the same as PLS. They will benefit quicker from a rising price.

Also inventory build. Makes sense, meets the China destocking tactic head on. They’ll have extra product to sell in a higher price environment and won’t be selling into a low price environment which China will use to restock lithium inventory.

Tianqi are in a pickle. China Inc want cheap Lithium as ordered by the CCP. The other two partners aren’t bound by CCP controls. Tianqi won’t be able to supply as much SC/ Li Chem cheaply into the China Inc supply chain. China Inc cannot control Talison JV.

Going forward, it will be interesting to see how this smallish (potentially 200kt of SC6, 27kt LCE) amount of LCE will have on the market, in 2H.

Todays SP reaction may be a leading indicator of, F¥€£en hell, the game is over. I suppose watching the short position in 4 days will be a flag.

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Legacy auto are swimming against the tide, like shorters.

BYD are just starting to wind up and Tesla are about to unleash $10B on next phase growth which includes an affordable EV to compete with China.

https://www.reuters.com/business/autos-transportation/chinas-byd-forecasts-2023-net-profit-rise-much-865-yy-2024-01-29/

PLS Price at posting: $3.60 Sentiment: None Disclosure: Held
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0 Great analysis

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