GXY 0.00% $5.28 galaxy resources limited

Re: Banter and General Comments, page-13

  1. 820 Posts.
    lightbulb Created with Sketch. 327
    The coup in Bolivia, in addition to being morally reprehensible, may have an adverse impact on lithium prices.

    President Morales wanted to nationalise Bolivia's lithium resources and restrict supply. The big time lithium players want to ramp up production and flood the market, in part in an attempt to wipe out smaller operators.

    I think the price of lithium - the high grade material fit for batteries, that is - will recover and flourish ultimately but Bolivian lithium situation could be a bump in the road.

    I say this because the President chose to resign rather than fight to stay in power. He has very strong popular support and the coup could have caused civil war, but he chose to save the lives of thousands of people by resigning.

    Having said that, it is possible that these events actually slow down the development of Bolivia's lithium sector - so the opposite effect is a possibility. Crazy times.
 
watchlist Created with Sketch. Add GXY (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.