Running discussion on SP, page-1491

Agree, it is a no brainer and very simple if you are a med-long term lithium sector investor. In addition to the 130 trays, lithium prices are increasing plus 25% year on year:

Galaxy Resources (GXY) - China Inc negotiated lithium concentrate off-take prices for a minimum specification of 5.5% Li2O:
2016 US$650/t (6.0% US$725)
2017 US$830/t (~27% price increase, plus customers to pay an additional US$15/t for every 0.1% improvement in grade of Li2O delivered, 6% US$905/t)
2018 Low and behold Galaxy only released a statement saying “Headline pricing achieved for 2018 higher than 2017” (GXY ASX release 29^th November 2017), with no actual price. I gather China inc. offtake parties put a gag on them as negotiated price was/is a substantial increase on previous years and become suddenly become confidential in nature unlike the previous years (ASX should look into this).

However, the latest from Mineral Resources (MIN) has set the scene or let the cat out of the bag so to speak:

Mineral Resources Mt Marion sale price for 6.0% spodumene concentrate Li2O effective from 1 April:
2018 US960/t (AU$1,240)

A 6.67% quarter on quarter price increase, ie projected 26.7% annual increase. After the first quarter for the 2018 calendar year received prices are on target for that +25% increase year on year end increase from the 2017 reported prices, as demonstrated by previous years.

2018 EOY projected target price is +US$1,125 (+AU$1,452) based on lithium demand and sentiment in the sector, resulting in further across board Lithium sector gains”. Research is the key and sharing is caring. Again, a No brainer, then and now … Bye …

Notes:
http://www.asx.com.au/asxpdf/20171218/pdf/43q86j505q363p.pdf
http://www.asx.com.au/asxpdf/20171129/pdf/43ppbybl4fc5qf.pdf
https://www.asx.com.au/asxpdf/20180411/pdf/43t46xjtdyl1gk.pdf


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You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right. ~ Warren Buffett