RE:RE:RE:RE:Anyone have a good eye doctor.Yesterdays run up could easily be some shorts covering their position, but it didn't really feel like that, which really seems like a stupid thing to say when talking about the stock market.
Sentiment in the Lithium industry, seems to be turning around, if anything, I believe we are at a bottom. I do not believe there has been any real demand destruction. Ford and GM are slowing their future plans for EVs but it seems like every other OEM is ramping up. By end of this year there will have been about 14 million EVs sold in the world in 2023, which was what was more or less predicted in January last year, so there was no slowing of demand as many might make you think. The lack of EV demand seems to be a Ford and GM problem based upon their inability to make an affordable EV. It also affects their future plans, which has no bearing on current EV sales. Tesla has had to drop their prices to keep selling cars and interest rates are obviously hurting big purchases, but I also think that the $7500 rebate will become at the point of sale starting in 2024 in the US will increase demand. China is also showing some positive economic news these days, which should also improve overall economic sentiment. It looks like interest rates have topped and future moves will be downward, at least not any higher. Lithium products on the CME futures are ticking up so it looks like the destocking at China, processors and cathode manufacturers is probably coming to an end, that has been predicted to happen for sometime, they're selling record numbers of EVs in China and many other parts of the world so at some point they have to be destocked. We have already seen some of the higher cost lepidolite and low grade materia mines shut down.
So maybe some shorts have recognized these tailwinds accumulating and decided to cover their position, or some investors may be thinking that the worst is over and the time to get in is now. Or there is some financing news in the pipeline that has been leaked. Whatever it was, hopefully we can stay above this level now. I also think that we are going to be seeing some very good drill results coming our way, hopefully soon. If they can increase the size of the rose deposit, especially with higher grade material it should have a nice impact on the SP especially if the spot prices and contract prices stabilize or even tick up. Jmho