Sunday, January 10, 2016

Article about Lithium juniors



The combination of increased demand, a favorable government change in Argentina (where several junior’s hopes lie), and higher pricing that should remain unabated until the end of the decade is creating the most favorable lithium investment climate in years. Add the turmoil in Chile around national lithium policy going forward that puts a near term cloud around ALB and SQM’s future capacity additions and the environment for investment in juniors looks even better.

Lithium demand is soaring and there is not currently enough supply therefore the price has risen significantly lately. I am playing this via Orocobre which has brought on the first new lithium mine in many years. My contention is that Orocobre will successfully debottleneck their operations and will take advantage of these higher prices. The market seems to think they will be successful as the stock has really moved recently.

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