April 11th, 2016
Good morning everyone, with lithium in a full fledged bull market, this morning’s
note looks at re-positioning in the space given the meteoric rise of lithium share prices. Electric vehicle mania, cost deflation, and reports of Saudi Arabia diversifying away from oil (I’m not sure about this one) have many believing that this move for lithium might be “the one”.
By my estimates, lithium development and exploration companies (excluding the majors), have raised USD $198 million year-to-date with many capital raises oversubscribed and so it appears that the lithium story has been discovered.
With many lithium share prices up by triple digits both year to date and over a one year period, this ought to give you pause about the sustainability of this move.
Demand forecasts appear set to outstrip supply in the near term, but I have heard this story before and think Shakespeare was right when he wrote “discretion is the better part of valor.”
This morning’s note looks a a dynamic and evolving lithium market with this quote in mind. As always, thank you for taking the time to consider our thoughts.
Upcoming Speaking Engagements:
Chris and Mike will be speaking at the SME Current Trends in Mining Finance Conference: Beyond Survival – Prosperity with the New Normal of Risk and Uncertainty in New York – April 24 – 27, 2016
Chris will be on a panel at the Metal Bulletin 8th Annual Lithium Supply and Markets Conference in cool and temperate Las Vegas, Nevada May 24 – 26, 2016
Recent Articles and Media Appearances:
Recent video and audio interviews are archived and can be found here.