RE: The Reddit Effect11 Feb 2021 17:06
No problems Pedro. I have seen a nice profit here turn to a long term loss and I am not at breakeven. Many of us were $$$$ eyed when it hit 17p!
Firstly there was an 'lot' of inventory to get through not only at the chemical producers but at the mines that are producing already. That stock had to filter out before 'new' pricing and contracts have been struck. Chinese Carbonate is up 41% since end of last year, that is a sure sign of inventory having been blasted through. However prices are up across the board.
2nd SAV delayed has been a twisted blessing in disguise. a: They might not have survived because b:they'd have had a chinese buyer of stock and those fellas have shafted lots of good companies c:many Aussie miners rushed designs for plants and achieved very poor throughput and recoveries (50%!) think one had to spend loads to redesign plant etc. The companies that designed these have found better designs and they are the ones testing our material, so when we build the designs should 'deliver' as promised. See these previous producers needed 70%+ to fulfill DFS returns, with bombing Spod sale prices and not even working effeciently they were hemorrhaging money. d: follows on from b, we can skip past the interim selling to Chinese and get straight to EU buyers. e: we needed to wait for the EU to get it's **** in one sock regards having a full value chain in place and funding (EU cars sales and money is now there)
3rd. Many majors brine and Spod have delayed expansions, some shuttered forever, some won't see any money for a long time and won't be competitors (KODAL based on $800+ sale price and C1 of £450+ won't see the light of day before us!
4th. Now we have the EU monster behind us, a closed market to EU suppliers, we might not get over market prices but we will be front of the queue (why would they buy Aussie spod over closer material that also provides security of industries and jobs?)
Look at the number of Giga factories, look at the number of new models for sale, look at the %s increase per month, EU is now competing with China for sale figures, 2 years ago EU was a footnote. Biden win in US best thing from a Dem win, they will electrify the US, make the EU look like amatuers.... This is a whole different 'market' than 2 years ago. I used to see day after day loads of juniors mentioned on tweeter, not now, we are in a good position albeit we have been battered and bruised. Monmey will flow to the best projects and the cheapest to produce. SAV has excellent spod and would made profit at lowest Spod price, not many did. Think Galaxy at one point needed $650 to breakeven, we in first 4 years had $210 C1. And we don't have to ship to china in that price now, bigger longer project with far better by product credits to come.
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