Some comments from heavy weights Morning. Relatively subdued overnight. Very interesting to read the Tianqi commentary overnight around a “stake sale in the world’s biggest lithium mine” implying IGO deal closure must be imminent (Q is today). SBM as well (watch for Gwalia), WGX (watch for cost commentary) and RMS.
Notable moves: 62% Fe +2%, Newcastle thermal +2%, Cu up at $4.48/Ib (Kitco), Ni $7.63 (Kitco), GDXs -c. 2%, another small uplift in U308 (5c/Ib to $28.91/Ib Numerco), LME Cobalt -7% and +4bps on the 10 Yr to 1.63.
Tianqi from overnight - The “lithium industry is facing a strong demand cycle and it is expected to resume a rapid growth,” Tianqi said in the statement to the Shenzhen Stock Exchange. The Sichuan-based company, which was granted a loan extension last year to help ease debt issues and unveiled a stake sale in the world’s biggest lithium mine, said its priorities for 2021 will still include reducing debt and lowering leverage.
Quote from Elon on their demand view from the call yesterday “Partners need to ramp up as well on the supply side. CATL, Panasonic and LG. Request to partners – please supply us with as much as you possibly can. We will buy everything they can make. Will double supplier capacity.”
Bob