For those interested in following the greater market I would...

For those interested in following the greater market I would suggest keeping an eye on any news about SQM.

Their current stouch with CORFO is now with a judge and from what I understand the way they are producing is leaving them possibly running out on their current agreement by 2022-2023.

I don't really know about their contracts and if any of them extend beyond this period.

From what I understand is that CORFO are pushing for changes and better transparency however SQM have refused to accept those request.

What this means in my view is that either the judge can decide that the current agreement is over and of which case there could be lithium anarchy in Chile.. Possibly less so.. Just a government take over like they have done with copper to nationalise.. Or SQM might be allowed to full fill their current agreement however what happens at the end of that is in the hands of the Chilean government and possibly the reason why Tianqi decided to walk away from their buy in and speaks volumes.

Investors talk about life of mine.. Well if we consider that 2017 is pretty much over between 2018 and 2022/23 there are only 5 years left of SQM's current agreement. This in theory provides SQM a life of mine of 5 years.

Anyone here interested in lithium investment would laugh at the idea of investing in a company that only has a life of mine for this short space of time with no potential to expand in any way.

Am I right?

I have been guessing that it's possibly the reason that SQM have also been throwing out their life boats into the Ganfeng and LAC JV along with that of KDR.

I believe that this has the potential to affect not only lithium pricing but long term contracts.. After all... Who wants a contract with a company that may not be able to guarantee a long term supply? That's if any contracts would be available up until their current production end date if they are able to get around an immediate take over of their assets.

All this works very well to the favour of companies that are or can get into production over the following few years and with Galaxy having 2 other assets in that position it has the potential to push us along very nicely.

Just the same as FMC purchases offtake from other suppliers SQM may need to grit their teeth and bear it should they get right royally screwed..

This could be the time when new superpowers emerge in the lithium space and whilst I am not an expert.. I believe Galaxy over time will end up becoming number 1 as partnerships emerge and flourish.

Could it be GAME OVER for SQM?

I am quietly hoping so as should any holder in a company producing.. Close too.. Or tied to SQM in some way..

They might become very desperate.

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