LYC is a stock which many Australian speculators like to play but it has fallen -19% year-to-date although there have been some major swings in both directions through the year. A few months ago the company had some issues with the water supply for its Malaysian operations but these problems appear to be improving plus importantly the company has a solid track record of dealing with such issues i.e. we believe it actually presents a good buying opportunity. In September the European Union stated “lithium and rare earth will soon be more important than oil and gas” – the timeframe is open for debate but not the journey.
- We like the risk/reward towards LYC into any weakness towards $8.
MM remains long and bullish LYC around the $8.25 area
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