What are MM’s thoughts to buy PLS / IGO / LTM?

Hi Young,

There are a few moving parts to your question and our recent purchase of PLS which we have broken down below, but in essence this time last year most analysts were bullish lithium, we now believe they have gone too bearish as lithium demand falls short of expectations while production continues to increase.

• We could easily have bought IGO &/or LTR after their recent falls but we opted for PLS because it makes a profit, pays a dividend and has a huge 21% short position that’s likely to be at least part covered when the lithium price turns.
• We have remained extremely patient with regard to this move but following lithium’s more than 80% decline we believe the risk/reward  has moved in favour of the bulls with our preferred scenario an initial bounce back towards $US25,000 as miners start to consider their feasibility after the metals decline.
• When lithium bounced from $US40,000 in 2023 PLS rallied over 60% illustrating how easily an exciting move can unfold.

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Lithium Hydroxide ($US/MT)

LAST UPDATED 19/01/2024 11:06

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Lithium Hydroxide ($US/MT)

LAST UPDATED 19/01/2024 11:06