RE:After AGM I am pumpedTook a nap and my subconcious brought forward the fact that Mr Haber and I are attracted to CRE for much the same reason- CRE is built around a solid technical foundation. One of the shareholders probably spoke for all of us when he point blank asked Mr Haber are u happy with CRE and are u staying? H answered in 2 ways First, he is very impressed with the high quality of the LI in the Rose deposit and he said the strategic partner will because of the high quality technical grade may be able to choose whether we produce LCE or LIOH in an efficient manner . H further remarked that he is delighted with the geological data that has been produced on the Rose deposit, H seemed to imply that there is a lot of smoke blowing by mine mgtmt teams trying to strike deals but that is not so with CRE. ( That reminded me of the 2007 AGM when a popular stockhouse poster directly accused JSL of lying about the deposit; and he got a 1:50,000 scale map with all the bore holes shown on it and he went thru in detail the drill read outs of each hole) In essence what H was saying is that u can trust this mgmnt team. The second reason H gave for staying was that CRE is a very careful husbander of co funds/assets. My impression was that as a German he admired the forthright careful mgtmt of CRE resources.
As to share price, H said share prices are being heavily influenced by the LI spot price reported in China and he pointed out that that set of numbers are being manipulated by China and others and are largely irrelevant in terms of the aggregate LI market because about 10,000 tons of LI change hands at the spot price; while the total market produces and sells about 240,000 tons annually.
For the first time in my investment experience that dates back to 1962, a senior mgr of 1 company stessed to his stockholders the need to read the qtrly report of another company to get an accurate handle on what is truly happening in the LI market. H said EVERYONE should read SQM's qtrly report on LI production and sales to get a real world feel for what is actually happening with LI production and pricing. H said it is about 15-20 sentences and it is invaluable given the opaque nature of the LI market.
Why am I pumped ? This is going to happen . We will have a high quality LI mine which has a 20 year life and we are going to have a strategic partner of significance. Eventually we may see CRE with all it's assets being developed reach the $3.50- $5.00 price range . Everyone is tired of the share price droops; but H pointed out that the reality of supply and demand will drive change in the current market. Exactly when he was not sure; but he was sure of it. The share price number used is mine alone.
How good a u going to feel if VW, BMW, Daimler, Ford or another biggie steps forward and joins hands with ur CRE investment ? Nice to think about.