Food for thoughtEverywhere I have invested in LI- Canada, Australia, Argentina- each investment is getting hammered stock price wise. Everywhere we read demand for LI is on the rise; yet the price of lithium is staying low. YOU and I are tracking this action nine ways to Sunday and it is a weird phenomenon. We question our sanity for being heavily invested in LI. Yet, some biggies we will never meet are doing the same as we have done, sink large bets into LI. Is everyone invested in LI dumb- hardly. This depressed price action will change. Altaf reported a $26 mil A loss for year but said they have a pre-Ebitda profit of $9 mil for last qtr. Altaf and PILBF are stockpiling a portion of their LI production as is ALB and others. So demand is growing strongly while production is being restrained. Only a matter of time before LI price level increases.
PILBF and ALTAF have gotten large LI buyers to ALSO be investors in their company. So offtake partners required to pay higher prices will share in stock price increase value.
Money is available in BIG AMOUNTS.
Just last month this was PILBF's announcement
Pilbara Minerals Limited (“Pilbara Minerals” or the “Company”) (ASX: PLS) has closed the institutional component of its A$91.5 million equity raising having successfully raised a total of A$36.5 million from institutional and sophisticated investors (“Institutional Placement”). As announced to ASX on Wednesday, 4 September 2019, the Institutional Placement will be followed by a strategic placement of A$55.0 million to the leading Chinese battery manufacturer for electric vehicles, Contemporary Amperex Technology (SZSE: 300750) (“CATL”) (“CATL Placement”) (with the Institutional Placement and the CATL Placement collectively comprising the “Placement”). The Institutional Placement was heavily oversubscribed and strongly supported by both existing shareholders and new investors with several new large institutions to be introduced to the Pilbara Minerals share register. Approximately 121.7 million new Pilbara Minerals ordinary shares are to be issued under the Institutional Placement at a price of A$0.30 per share (“Placement Price”). In addition to the Placement, an SPP is expected to raise up to an additional A$20.0 million which will be offered to existing eligible shareholders shortly. Pilbara Minerals’ Managing Director, Ken Brinsden commented on the Institutional Placement: “We are extremely pleased to have received overwhelming demand for the Institutional Placement, including from our existing shareholder base. We welcome high quality new institutional investors onto our share register and are looking forward to welcoming our new investor CATL to our register and developing our strategic