Bit of plagiarism here - posted by Dr_Manhatan on the AVZ thread - some observations about the lithium sector and the recent pullback.
It's been pretty rough for the lithium sector in general last few weeks.
We peaked in Jan 16th like many other stocks and have been since hit with,
1) Roskill report
2) SQM scare
3) Dow Jones correction
4) Lithium Carbonate price drop (carbonate 153500 yuan/kg now compared to 167500 in Nov last year. Hydroxide prices steady.
On the plus side, EV sales higher than expected according to some reports.
Not sure about Monday but as a long term holder, I'm just digging in on my lithium stocks til the negative macro news blows over especially with a wind of accelerating EV demand.
IMO whatever the proposed lithium deal is, it will need to be revised, as it now looks like it was priced at the peak of the market.
TON have been offered tenements with unproven drill ready acreage.
With the rush for companies to find and drill out lithium acreages around the world, what is currently an economic deposit may prove to be uneconomic by the time TON completes a maiden JORC (in the case that they actually find something and get that far).
This is a risk which has not been priced in - and all companies that are latecomers to the latest mining fad are faced with.
The market is also going to re-define what constitutes a large hard rock deposit in the coming weeks and months.
IMO This is just going to make it harder for other companies to raise awareness in the market when reporting hard rock lithium drilling results.
I have referred to the latest 20,000m infill drilling program in acreage 60% held by AVZ in the DRC. All indications are that the Manolo-Kitolo (Roche Dure - Carriere de L'est) deposit is larger than all the deposits in Australia combined.
For those that are interested here is a post which outlines the current drill program. Only posting it as that stock forum is very busy.
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