Not much has changed really, but for an alleged oversupply in...

Not much has changed really, but for an alleged oversupply in the short term. Let's see how that plays out.

So the lower prices just go to harm the prospects of new supply coming online and deters brownfields from expansion.

Some will stop or scale back production.

Which in turn will increase prices. Economics 101 is not broken - this is entirely to script.

As Sigma's presentation shows, EV demand remains robust and batteries keep getting bigger.



I'd argue static storage is growing very strongly and is about to become a big deal for lithium.

Anything mobile with high power needs will need lithium. Aircraft, ships, robots...in addition to all the things we use it for now.

And to meet that demand, very few new projects are coming through the pipeline.

So where in the world will we find 50 large economic resources like Sigma that will go into production before 2030?


There is no reasonable prospect.

Low prices have choked out exploration. So many companies were looking for lithium 12 months ago - how many now? A handful, at best.

Only a few developers are still going and even then the risk of them not securing the finance they need to get to production is significant and growing.

There will be demand destruction and higher prices. There will need to be compromises and substitution.

And within that context Winsome will be one of the few new developers to come online.

Largely derisked on the financing front with Renard (and likely a very eager partner soon).

A massive and growing tier 1 deposit in a tier 1 jurisdiction.

A key linchpin of an emerging North American supply chain that will need its own feedstock and cannot deal with China for its own strategic reasons.

Adina/Renard will be a project that will be profitable through all parts of the cycle - from prices below today's prices to the swing back highs of the next cycle.

Studies out shortly. Strategic partner by the end of the year (likely). Road funding imminent.

So maybe the SP go lower today, but that's not my concern. I'll look further ahead than that.