But it doesn't take many sells to move the SP here so its prudent to head off turds before one or two think there is something to their comments.
Selling begets more selling unfortunately, and it would be disappointing to bleed out all our gains.
The road up appears favourable to those with strong fundamentals, the road down is a general rout that sees all suffer more or less equally (Winsome more so given its small float).
I agree the futures price is unsustainable and does not make sense, but as observed can exist in a bubble that only really has application for slashing the SP of lithium equities.
I was troubled to read a broker note last note that indicated that everyone they spoke to in China said that spod was in shortage but also that African supply would swamp demand the back end of this year.
They went on to talk about what supply they expected to come from Africa and that information was painfully incorrect.
No doubt that oversupply sentiment, or orchestrated narrative, is playing into the speculation of traders of lithium futures on GFEX, driving the futures prices down. Thats assuming the futures prices are not an outright fraud, designed simply to drive down the price to hurt the equity prices and Western supply.
Likewise, that analysts are conveniently shown stockpiles of resources, chemicals, anodes and batteries. I'm reminded of militaries that use fake military installations to give the appearance that they are places they are not, or the impression they have a stronger fighting force than exists in reality.
It looks and smells like a war to me, albeit that the West seems oblivious or is not prepared to act until its too late.
It would be simple for the West to set a simple floor price for spod as a price guarantee, securing the means to develop a strategic stockpile and ensure an alternative supply chain could be built out this decade.
WR1 Price at posting:
77.5¢ Sentiment: Buy Disclosure: Held
(20min delay)