Lithium Power International Ltd (fka LTHHF)

[Dr_Vonschellan]

Argentina_has fallen_headlong into_IMF trap_on lithium_"witness" price

Last May 2022 Argentina enacted General Resolution 5197/2022 which set the National collective "witness" (Base) price on exported lithium at $53/kg or $53,000 per metric tonne https://miningpress-com.translate.goog/nota/347687/argentina-fijo-precios-testigo-para-el-litio-la-resolucion?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp thereby setting up a situation condoned/endorsed by Lender-of-last-resort & financial-architect IMF to pay lithium miners a set price of $53,000/mt at the comfy air-conditioned free-coffee government toll house FOB scales through the good times and the bad times. The difference between the witness (base) price of $53,000/mt and the market price which at the time was north of $66,000/mt would go to the Argentinian State and be used in large part to specifically and simply pay down the huge huge IMF debt that Argentinian owes the IMF in exchange for even more easy-money billion-dollar IMF loans in the later part of 2022 and early 2023... so far. We discussed this situation on June 1, 2023 https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169026066 and postulated that sunlight-hating Argentinian banking intermediaries could use a form of timing-sensitive arbitrage between the Argentinian Treasurer and the IMF Bankers to "peel" off a little more "nobody-will-miss-it" profit for Argentinian middle-men/con-artist-bureaucrats/self-enriching-politicians if the "regulators" overseeing the whole "witness" base (and the intermediaries processing the) "difference" were being bribed to be not as diligent as they would normally be in an ideal non-greedy/non-thieving world.

This plan could have worked moderately successful if Argentina could simply control is runaway inflation.

Argentina's inflation has been rising this past week to new eye-popping levels with a 7% increase just on Tuesday creating a 118.5% exchange rate distortion with the US dollar based currency.

Ding, ding, ding, ding.

Argentina seeks to renegotiate with the IMF amid growing exchange rate tension
https://www-infobae-com.translate.goog/america/agencias/2023/04/25/argentina-busca-renegociar-con-el-fmi-en-medio-de-una-creciente-tension-cambiaria/?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp

You can bet your house and your car that the IMF is going to demand that the "witness" (base) price on a tonne of lithium is going to be "re-pegged" from $53,000/mt downward to something closer to $40,000/mt or lower now.

... and who will suffer first you ask?
The lithium miners in Argentina first obviously.

New Rule, as Bill Maher says,
Do not get into bed with the IMF.
But if do get into bed with IMF, do not let them touch your lithium.

The Doctor