Ah Koi, The sector is being shorted because it is in oversupply and margins have been decimated. This in turn reduces NPAT which then reduces market cap and the SP. i.e. meaning the shorters are reading current market conditions better than the poor old longs. In fact, anyone who was half smart would have been out of the lithium sector 18 months ago or, started shorting the sector at that time. However, starving the sector of investment will eventually turn the cycle back to undersupply......how long that will take......???? Certainly the latest Gangfeng deal will extend the time out. As far as halting EV disruption, a lower lithium price would help the EV sector by making the price of inputs lower and thereby making the price of batteries lower.
P
ORE Price at posting:
$2.39 Sentiment: Hold Disclosure: Held
