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Message: Couldn't agree more with this analysis re: LAC

I am referring to a post on TOB just an hour or so ago by "Martin".  I believe he is absolutely correct in his perspective in thinking of LAC as a long term "futures contract" type investment and I appreciate his reasons he lists for that opinion.  A good analysis is worth paying attention to regardless.  Here is his post:

 

Some bright spots during the pause in construction in Argentina:

Brine fields already filled continue to evaporate yielding high quality lithium compounds ready for processing.

Covid is having negative effects on all aspects of the mining world, thereby putting a total damping on expansion plans.  Thus productive capacity, in the short run, will fall far short of requirements - thereby driving prices for this metal dramatically upward.

More and more all-electric cars are being announced.  Ford, for example, just announced a relatively attractive SUV that will be offered at under 40K.  

So the drivers for demand for this metal are in place and increasing daily.

Construction cannot begin in NV until Jan of 2021 anyway so there is no covid delay there.

So the price of LAC per share has to rest on potential, which is real, multiplied by huge demand, which is also real.  

Thus think of LAC as a futures contract whose price has yet to be determined.

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