News: CXO Australian lithium miners dive as prices dip in December ore auction, page-2

Goldman Sachs are opportunists and will capitalise on news to suit their purposes. Prices for any minerals will fluctuate and as China is the biggest buyer of lithium, it is not in their interest to see prices rising indefinitely. Hence there will be times when they will reduce their buying and we see the prices falling. The bottom line is that for lithium the demand is increasing and supply cannot keep up with it.

What is more important is the cost of producing lithium, currently Pilbara Minerals is making a bundle as their cost is well below their selling prices.
The December sale price was $252 below that of November or a 3.24% fall. How significant is this drop? Even if the price fell by $1,000 a ton are they going to lose money? The answer is a simple no.

In the case of CXO they are a low cost producer and even the price they sold their DSO is quite profitable for them. To force prices down the manipulators will grab any news to suit their purpose. Previously it was mass resignations of key personnel and forecast of bad weather which would delay production. The weather has been heating up and with no rain in the vicinity of the site, we would probably see increases in output.

At today's prices the SP is definitely undervalued and it is a very dangerous game the manipulators are playing. I do hope we get an update from management as this relentless forcing of prices down is unhealthy and some timely news would send the blighters to the cleaners. I chose to buy more today's the price is ridiculously low. DYOR