As despondent as I have been recently, it is hard not to see that the lithium market is starting to display very early signs of a very distant, slow and fragile recovery. With recovery the tides will turn and the Li cycle will restart. We just want to be in a position of 'well averaged down' when the cycle does restart. Current 8 week goal is to bring the buy-in average from .6XX down to at least .5XX and preferably .4XX.
Cinovec asset is not going anywhere, nor is the world's greed for lithium. If all those lepidolite producers in China made an absolute bank during the last two years (they are all on C&M now) EMH is still a very viable and very competitive asset due to a much better position on the cost curve (Chinese lepidolite producers don't have the benefit of neither Tin credits nor EU subsidies).
All we got to do is wait, and god damn we've gotten really good at that didn't we? After the EMH saga all of us need to be awarded PhD's in 'Patience'.
Regarding the restarted Li cycle: the crucial part is to identify which horse to back (i.e. I had the PLS vs AJM dilemma in 2019-2020, lost 50% of portfolio at first then gained a lot more from PLS holding). Luckily EMH was not on my radar!
Let's see if this BOD has the needed talent to squander another Lithium cycle? Even if they do exactly what they did before (mostly nothing) at least we'll get an opportunity to sell, peaking somewhere around $3-4. I always refer back to the chart to remind me that EMH did quite well during the Lithium booms, even with its mediocre management:
EMH Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
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