The reality with small cap resource shares is that we will always be “behind the curve” with news flow. As a result, the same can be said with price action. It is for this reason that it’s imperative you pick companies with sound fundamentals, namely a project that is commercial in a workable jurisdiction. LPI/MSB is such a project IMO. Trading is one thing, investing is another.
Chile is ranked 8th in mining friendliness globally (way above Argentina etc), however, the previous government pulled a fast one re Codelco and the Maricunga. Hopefully this will be rectified soon. Regardless, looking out 20 years+ over the project life, Chile is a far more stable jurisdiction than most. Currently everyone is fixated on how accommodating Argentina is but that can change quickly, look at their current situation. If they continue for falter who knows what comes next. I’m amazed at how complacent market commentators are about that situation. My point - if my reading of Chile is correct, on balance, we’re more likely to get positive news flow (perhaps the removal of Li from the strategic metals list), a resolution of the Litio case or workable JV etc.
The quality of the project, battery grade Li2C03, consultants etc means at some point the share price will catch up to the fundamentals. Other than minor delays LPI has achieved all its milestones. We have cash in the bank and a strong board. My only gripe is that they haven’t punched some holes into our WA exploration assets whilst sitting on a pile of cash. Otherwise this company has done all it can and is on track to commercialization.
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