I got in this last week on the following expectations:
- Russia and China are looking to trigger waves of inflation in the West by controlling key commodities including food. Russia is essentially in control of Ukraine's grains production through blockade. China is securing food supplies as well. Other countries will start looking at food security more urgently very soon and expanding their production where possible...relying on friendly suppliers who won't be holding them to ransom like China or Russia.
- Phosphate is key ingredient in Lithium Ferro Phosphate batteries. Lithium Ion batteries rely on nickel and cobalt. Russia is effectively controlling nickel supply. Tesla already started producing LFP batteries to counter that risk.
I expect the price of phosphates to trend much higher than 180 in the next few years. Hopefully this company doesn't do any "hedging" as part of late year financing.
CXM Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
