RE: Rock Stock Interview4 Aug 2021 08:39
According to MD Ken Brinsden, there’s even more to the positivity lithium miners are dealing in.
“Prior to this auction the maximum price referenced for spot was about US$900/t,” he told delegates at the Diggers and Dealers Mining Forum in Kalgoorlie today.
Lithium shortage “genuine”
Brinsden also believes there is a real shortage of lithium feedstock in the supply chain.
“There is a genuine shortage, that I am certain about,” he said.
“The idea the chemical conversion industry is now stuck, they’ve built a lot of capacity without reference to the underlying raw materials supply base.
“As a result the miners are going to attract more margin, there’s just logic in it.
“When I think about telling you that story last year you would not have believed me, but actually we were starting to get a feel for that very event happening, it’s been building for some time.
“China has built too much conversion capacity for the available supply.”
Brinsden said PLS would be open to have other traders on the BMX platform because it provides transparency to the opaque and immature lithium spot market.
“The benefit you get then is greater transparency, what is the real price, and I appreciate that’s been very difficult to ascertain in the lithum raw materials world,” he said.
“We are advocates of greater transparency, that’s one of the reasons we built the platform, and we do like the idea there will be more industry participants over time.”
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