while spot prices may peak, contract prices for firm delivery will likely continue upwards for awhile. Users will need to secure supplies, not hope for oversupply and falling prices. Orocobre, with current production, can execute contracts now that will be delivered in 2017 and beyond. Given their real production, they should be able to command good prices.
They recently finished some of the original contracts at sub 10,000 prices but have delivered more recent sales at over 13,000/tonne. The blend of the old contracts and new should lead to the $10,000+ prices forecast for 2nd half of 2016 for Orocobre.
I think it's important to note that Olaroz was built on the premise of $5,000/tonne so the plant should still be profitable at lower prices than the sky high 20,000 current spot price. I still like Orocobre. Not sure doubling capacity looks as good right now but if the powerwall installations plus utility sized solar continues, battery demand could be higher than the estimates quoted in the article.
PS. At 4.04, my last buy at 4.08 ain't looking so good for a flip. Maybe the hard questions about Tesla's ability to really produce cars for the common man and their ability to keep financing losses are causing investors to question the whole lithium industry.
Please post stock symbols first in all your posts. If it's a foreign stock, please list the US pk equivalent symbol.
If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
