Does MM like Lithium and its respective stocks?
Hi MM, I refer to your comments on 3 October 2023 in relation to lithium, including “[w]e believe it’s time to slowly start to consider a reweighting back towards lithium names in Q4 of 2023” – and your comments today, 5 October 2023, in relation to the JP Morgan downgrade. From what I have read today from various commentators, it appears that some other investment banks also today/overnight downgraded their outlook for lithium (sending lithium stocks lower today) including in regard to a faster-than-expected supply response outpacing demand growth and concerns about supply surpluses, etc. (Of course, they go into a lot more detail, with more nuances than this very general, one-sentence summary). These views contrast to some degree with other commentary I have read recently about the long-term structural trend for lithium remaining intact, and indeed, some commentators seem to think the supply response will not be as strong as those with a bear case anticipate. What are MM’s views on lithium (price forecasts/supply response, etc.) from the short to the long term following these investment bank “bearish” notes, including the various comments by each investment bank? Are you still of the view that it is time to slowly start to consider a reweighting back towards lithium names in Q4 of 2023, with a “preference…for the profitable and dividend-paying majors”? In light of all this: (1) are you still comfortable with, and long and bullish towards, Mineral Resources (MIN)? (2) in accordance with your 4 October 2023 comments, does “PLS ~$4” still look interesting to you? (3) have your view set out earlier today on IGO changed at all? I note that the various investment banks’ views/ratings on these three stocks differed in some (not all) respects. Thanks, Darren