Yes it is very disappointing, but I believe that is a case of stock manipulation. I have been reading in a HotCopper that large institutions are lowering the stock to buy more at low prices from weak hands. Shorters may also be contributing even though the percentage of shorters has decreased lately. I am not surprised since we went through this earlier this year, when manipulators were able to lower the stock despite the good news, increased productions and profits. I am not worried either, becse the stock will eventually shoot up due to its excellent fundamentals, just as it did a few months ago. Patience will pay off.
The new contract is beyond huge. Galaxy was able to sign contracts with several Asian big fish companies probably in China, Japan and Korea. This is harder to accomplish but it is much better than contracts with single companies that other miners have signed recently, because it provides better leverage, safety and diversification for Galaxy. Mitsubishi continues to be involved as an agent to protect Galaxy interests. The prices for 2018 are better than the current races, and future prices are negotiated on an annual basis, which bodes well with the likely increase in lithium prices expected for several years. This is much better than locking the price for 5 years. Finally, there are provisions for Galaxy to use spodumene in carbonated hydroxide converters (perhaps Nemaska, or Lepidico?).
The new contract, the increased production, the lower cost and tthe increasing lithium prices should result in a 5-year profit in excess of $1 billion. This great profit should allow Galaxy to develop the even better assets in Argentina and in Canada. Canad’s mine is the perfect location to supply lithium to North America’s auto makers and perhaps Europe. The mine is bigger than the one in Australia and easier to mine from. Argentina provides the alternative cheaper way of extracting ithium from brine. It can export lithium anywhere. These two resources are perfectly positioned to produced heaps lithium in a few. Years, which may bee the perfect time de the scarcity of lithium expect next decade.
The above is IMHO and DYOR.
Good luck to all of you invested in junior lithium miners that produce like Galaxy!
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