Should You Keep Your Eye on Lithium?

14.02.2017 • Investing

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By Kris Sayce – Port Phillip Insider (Australia) –

Speaking of booming markets, on 25 January, colleague, Callum Newman wrote this in Money Morning Trader:

‘Dare I ask this question: Is the lithium bull priming to run again? It seems too good to be true that a sector that was so hot in 2016 could do it again. And yet the charts indicate it’s time to revisit this sector.

‘Here’s a story that caught my eye earlier in the month. The Financial Times reported that one of China’s largest lithium producers had bought a 19.9% stake in an Argentinian lithium project. It’s also providing a US$125 million debt facility.

‘The lithium project is not due to start producing until 2019. That’s two years away. This Chinese group is obviously thinking in the medium term here. It also suggests Aussie-listed lithium players are still ripe for takeover offers and similar deals. Point being: Real money is still being invested in this space.

‘The ‘Electric Gold’ report we did on lithium is still in your special reports section on the website. It’s worth a read. There’s been plenty of water under the bridge since January 2016. But the basic fundamentals look the same. Those stocks ran hot in the first half of last year before cooling off. Now they’re creeping up again.

 

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