The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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“Koch is a significant investor in Standard Lithium, and we are excited to expand on this strategic relationship. Developing a market-based pricing off-take structure with KM&T at our South-West Arkansas project will allow the Company to benefit from the projected high prices for lithium chemicals in the coming decade and beyond,” said Robert Mintak, Standard Lithium’s CEO. “Additionally, the ability to leverage KM&T’s substantial purchasing and commodity trading capabilities to optimize the price, quality and quantity of reagents required to operate the plants in the future, which is meaningful both for financing these projects as well as their successful operation.”
A very good example of what the big companies are already booking in high costs ongoing to make product. Yesterday Standard Lithium & Koch released this news which clearly points towards Koch's ability to work with other partners to aquire products needed by Standard Lithium at a cheaper rate to full market value. They know prices will keep rising in the short term which could hinder progress of SLI as they go towards first US commercial production.
Great example.
I am a holder her and very happy to be so.
However, inflation is coming.
"Too much of a good thing...."
It is great that most metals are booming, but have a thought for the buyers and even further down the chain to the manufacture and supply of product.
Inflation of metal prices could go too high making a battery or electrical product just too expansive to make ? Then those industries that rely on employees and large factories , energy cost flying up adding to that cost.
People will be 100% posting if tin went to US$100,000PT that would be fantastic wouldn't it. Yet it could kill the buying dead. So like British coal years back. We had the best coal in the world but it cost too much = one big reason why the industry died.
I'd be happy to see less profit per ton but be able to get a long term contract of 10 years at a slighty higher rate than was factored in just 12 months ago.
It all sounds good , but we need a sellable price too.
Inflation also with tim thou!!
https://tradingeconomics.com/commodity/tin
Good start , up BUT OZ got hammered last night so dont be fooled in !
What will happen today with global markets ?
Fed up tomorrow and the huge Amazon, Microsoft , Google results this week .... Oh and the possible Russia v US war ?
These will overwrite any good news this week and possibly the next few ? Strap in.
Vulcan & Standard Lithium were at 15.00 in each of their currencies. Both golden boys , one safe country duristrictions with THE in demand metal and now both nearing 50% down ??? Go figure.
"The chief Australian index which was expected to fall heavily on Monday in response to Friday’s lead from the US, experienced a gentler fall of just under 0.5 per cent. In part this was due to US futures gaining ground on Monday.
How the US market fares when it opens this week will be influenced by the results of several large players who are due to report their fourth quarters – including Microsoft, Tesla and Apple."
The psychology of investors, example Netflix last week Q4 beat expectations BUT higher costs, low sign up for streaming in 2022 = 20% drop. Fortesque Metals bought Williams Engeneering for the lithium batteries overnight = down 2% on market worries.
Good new does not protect in this new world we are in.
I notice Russia in the back ground headlines regarding the European oil supply. Any whiff of threat to this will see oil & gas rip up quickly stoking even more fears regarding energy prices = higher inflation very quickly.
As much as I want to say this is short term, just be aware of the longer feed through ie the price cap for energy is set around Feb 8th from memory. That locks in across the manufacturing production and retail sectors. Any action by Russia lasting in to next summer and Autumn could see this new high rate dwarfed by the next energy price cap.
Look at the last 6 months for lithium, hydrogen , tech stocks in general.
Look at Shell & Bp over the last 6 months.
Look at energy prices for the next 6 months.
That picture right now before anything else happens shows 2022 could be a very very tough year, even with good news.
My IG Australia holdings are all down around 10% since last Thursday midnight GMT time.
Also The Fed are up this afternoon with what will ve their first response to the current climate.
Hopefully not worrying but the markets this afternoon could tell a story for the rest of the year.
Fingers crossed for us all.