PLS chart, page-22433

The conundrum we often face. I had a situation where I wanted to take some profit in PLS after I switched to Pension phase in my SMSF, for the obvious tax free capital gains benefits. That didn’t align with the PLS highs of late 2022-2023. Hindsight.

Stating the obvious, Lithium sentiment is low. It appears that will be the case for the remainder of 2024. Picking exact highs and lows is more often good luck than skill. Sorting through the data and misinformation is not easy.

The supply curtailment/contraction will take time to play out. The flag for me is when a big player (BHP type size) moves on a big Lithium player. I think we will see a turn before that as the market (FIBO mob) will have been informed and those short positions will start closing.

Like most, I’ve been surprised by the amount of low quality uneconomical supply from Africa and China. Is that sustainable or is it a short term strategy to pick up quality sustainable assets.

I note shorts haven’t increased more than the current 20-22% range.

Demand and GWh deployed is still growing at a good rate.

I note BEV in China are now at a lower price than ICE vehicles. That should keep China consumption high. Will that translate to ROW market?

Buy low, sell high. Easier said than done.