Money talks1 Dec 2023 07:56
My view is simply this. China, miners, processors, car manufacturers do not want to secure deals with spod priced near it previous peak. TO become super expensive, off take agreements bias towards junior and JV deals expensive. So the answer is trash the spodumene price allow everyone to secure deals at a far better price not in cost benefit for juniors and bully the junior. Once everyones taken position secured put my house on it prices move well.
Its manipulation at macro scale. If you keep an eye on lithium news outlets. Deals are being offered, some taken many refused. JVs signed all year long with majors and car manufacturers trying to secure supply. This has been happening all year in the spod price slump.
Explain to me why rio tinto have just taken on huge areas of Australia if they didnt foresee the huge profits to be had coming up. These guys dont get it wrong.
If majors are buying out agreeing deals and securing land. As PIs we should be doing exactly what they are.