GXY over-reaction

The GXY share price has dropped more than 35% in the last 2 months ($4.54 to $2.98). I understand that we have experienced many things in the last few weeks such as US market volatility, tariff change in steel and aluminum, the controversial report about lithium supply/demand.

In terms of the “the US market volatility and tariff change in steel and aluminum” and this stock”, I do not see any relevance to GXY.

In terms of the oversupply risk raised by Morgan Stanley, I have seen many reports from big companies such CITI and many experts who claim the report is incorrect. One of the major mistakes in Morgan Stanley report was that the demand from Asia has not been estimated correctly. For me, this is a big mistake as Asia will be one of the major lithium consumers in the next few years (For example, almost all of the off-takes made by PLS are with China and South Korea).

It has been already obvious that the lithium price would not surge forever and it will be alleviated in the next few years. However, what I do not know is that why the lithium price drop in few years sooner or later has resulted in the share price to drop by 35% (bear in mind that even the $4.54 share price experienced in the last 2 months was not the targeted price and we know GXY worth much more).