MLS Weekly Report, page-32

Hi,

Thanks you for your unbiased assessment of how you see the Lithium share prices.

I just read something I think may give a clue.

Currently there are too many uncertainties in the market for the stock market to take a bullish stand.

Usual suspects, Ukraine war, Inflation/Interest rate worries, Chinese potential recession and ongoing widespread Covid disruptions, China also is currently experiencing an unprecedented heatwave (people go online and frying eggs in pans on the footpath). This will have a severe impact on food prices/ food security (empty supermarket shelves), water and energy shortages and employment (as most factories do not have airconditioning). China is drowning in domestic problems.

But considering all of this the Lithium price is holding up very well as opposed to other metals like copper (-20% in one month), Nickel (-22%) and Cobalt (-11%)


EV demand is globally stronger than ever. Battery manufacturing plants are popping up like mushrooms. (It takes in China to build a battery plant less than 2 years).

Elon said that the biggest constraint to growth in the EV market are batteries. So I don't see a problem from the demand side and and substantial decrease in the Lithium price.

When the big players Abermarle, PLS, AKE, Core Lithium etc making lots of money over coming years investors will return to the oversold Lithium space in my opinion.

Let's see.

K