Very astute of you cgdog. Must admit the word “cartel “ comes to mind as a cartel traditionally sets the selling price. Now why would one openly come out and say that the selling price of lithium has come down when their main Line of business is lithium sales.
There are a couple of reasons. 1. Stop or slow new lithium miners/supply from progressing too quickly or at all. 2. Place uncertainty in the mind of financial institutions lending to these producers. 3. Try and stop a particular transaction from happening.
Whoever buys KDR will have the cash to very quickly build a processing plant in order to generate profits ASAP. This may be a little too immediate for our JV partner who already has supply.
Lets face it. We all know that there will be a shortage of lithium in the coming years. Keeping new supply from coming onto the market guarantees it. Then the selling price will rise to record levels. To me this is a case of short term pain for long term gain.
I am a conspiracy theorist ! Any one watch Billions ?
IMHO DYOR
KDR Price at posting:
$1.88 Sentiment: Buy Disclosure: Held
