We all need to pay attention to this latest sign of major Li...
We all need to pay attention to this latest sign of major Lithium players $Pilbara Minerals Ltd (PLS.AU)$ $Genesis Energy Ltd (GNE.AU)$ acting counter cyclically & growing beyond their 'teenage years'.
More vertical integration with the lithium players moving downstream should IMO:
o enable more value capture through a lithium units life cycle,
o smooth earnings away from volatile spot lithium prices
o enable a multiple re-rating towards the promised land of 'speciality chemicals'
In the last down cycle most lithium producers battened down the hatches to ensure survival thereby creating the lithium boom of the past few years. This time around we are starting to see a number of the 'majors' use the down cycle to better position themselves for the next up cycle.
None of this speaks to the industry expecting a protracted down cycle. It might also point to higher lows and lower highs.
DYOR
More vertical integration with the lithium players moving downstream should IMO:
o enable more value capture through a lithium units life cycle,
o smooth earnings away from volatile spot lithium prices
o enable a multiple re-rating towards the promised land of 'speciality chemicals'
In the last down cycle most lithium producers battened down the hatches to ensure survival thereby creating the lithium boom of the past few years. This time around we are starting to see a number of the 'majors' use the down cycle to better position themselves for the next up cycle.
None of this speaks to the industry expecting a protracted down cycle. It might also point to higher lows and lower highs.
DYOR
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