RE:RE:New bottom today. Good stock Wheeler -- where do you gather your intel on Li futures and pricing in general.
My personal belief is that CRE and all Li names are down due to the spot price -- we are not unique. Just plot us against all other Li companies and we are trading down based on commodity pricing. We are slightly more punished due to the fact that we have not secured a deal at this time.
Low prices are the antidote for low prices in the commodity space. This is the 3rd boom bust cycle that I have witnessed in the Li space since I have been invested in CRE. Lets not forget the last cycle when Li was cratering and MS and GS were putting out super bearish reports (think it was around 2018/19) and then out of the blue, Li spiked and all names spiked higher. I have no doubt that the same will happen again -- and we along with many other names will benefit greatly. When -- don't know. Could it begin in a month, two, four....who knows.
Other major catalyst that I see is the new drilling that will begin soon (hopefully this month). Remember that the grab samples were very bullish -- not only because they were hovering around 2%...more significantly because (as i recall) around 70% of the samples were at that percentage. Often you would see a small sample of high grade grab samples -- in our case, the majority were high grade with is a rather bullish indicator. There is a real possiblity that the size of Rose is expanded materially. The great thing here is that drilling could take a month or so and results should flow fast given most of the labs are available and not backlogged as they sometimes are.
Of course - we are also waiting for tree clearing permits, land lease permits etc etc...small milestones.
The big stuff for us: Li pricing, Drilling results, Financing.....
Finally -- all I need to hear is that Honda is contemplating an $18Billion investment in an EV plant. I don't care if it is situated in Canada or the US -- the point for me is that major car manufacturers see the future and EV is a major part of that future....the demand story is intact.
It's not easy being invested here or any Li name right now....this too shall pass
GLTA