GXY 0.00% $5.28 galaxy resources limited

I don't know about six months, but it is going to take a change...

  1. 210 Posts.
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    I don't know about six months, but it is going to take a change in the attitude of "analysts" working for the institutions.
    Lithium is a product that comes in a great many forms. It is not just dug out of the ground or scraped off the bottom of an evaporation pond - that is only the beginning. The complexity of the types and grades of product produced are myriad and driven by the requirements of the end user (battery manufacturers for example). The China spot market reflects what has been produced, mainly IN China, but not contracted and not to a chemical standard required by any specific user. As such, it's almost a dumping ground.
    ROW (rest of world) prices are generally agreed contractual partnerships. The terms are normally commercially sensitive to the partners involved and not freely available, reflected in more general terms in post dated financial results of those involved. (Mt Cattlin off take partnerships a prime example)
    This is not comprehensible to mining and minerals market analysts, who are attuned only to the "dig it up and ship it out" methodology. With only one relatively "real time" source of price data (China Spot), they are clutching at straws. Read the recent company reports from here and overseas and see how little relevance the "market" reported price has in the real world of serious lithium producers.
    The manipulation of lithium stocks, sector wide, will disappear eventually. Quite simply the companies such as Galaxy, Albermarle, SQM, ORE and others that are mature and maturing producers will have their share prices reflect their results. The money they make will do the talking.
    A true lithium benchmark market price index is still out of reach, and until such time as an accurate barometer of that type is available the sector is vulnerable to price manipulation.
    My opinion, for what it's worth, is simply the same as it is for other shares.
    Each share that I buy is a piece of a company I believe in. A company with sound fundamentals, great management, producing a product in high demand with a great margin. I will continue to hold, proudly watching as the cash flows in and Galaxy grows and grows, a generator of wealth.

    DYOR and GLTAH
 
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