"Sociedad Quimica y Minera announces that its Board has established a special committee to analyze the matters that have been divulged by the press in recent weeks and are the subject of ongoing public cases and investigate such matters (SQM) : The Board delegated to said committee all of the authority needed to undertake the assignment, and instructed the committee to retain such independent external advice as it deems appropriate at its discretion. Upon performance of the investigation, said Committee shall report back to the Board of SQM S.A. with conclusions and proposal of action, if any."
We are here because of lithium. We bought a stock that merged twice into Talison Lithium which the Chinese bought. Went from .34 to 7.20 in 4 years. SQM's brines are much cheaper to mine than hard rock lithium but are lower grade and have less uses. And it is a solid potash company in a good neighbourhood. Think long term on this.
When electricity is cheap via gas turbines, it seems logical that utilities would see an opportunity to buy and store.
I'm waiting for lithium prices to spike due to the Tesla battery factory. However, that will still be 2 years away. However, that's plenty of time to buy at a bargain price.
I'm still waiting for that lithium sales projectile to move the stock price up ----- I think $21.00 is the bottom as long at fertilizer holds on POT, and MOS stocks thats where the real earnings are.
SQM doesnt have the fuel costs of the other "earth mover" or open pit miners. They employ solution mining techniques. Thus is why their cost structure compares very favorable to the hard rock lithium miners is Australia.
I am still waiting for that big lithium explosion - low oil prices make battery powered teslas type cars a thing of the past not future - I told you just concentrate on fertilizer for where SQM is going.
There is a recent article out regarding diesel being about 25% of Rio Tinto's costs, but they are an open pit ore miner and I don't imagine it could be anywhere near this high for SQM. I looked briefly in the IR section of their site and at some filings but didn't find it. I'm buying a little more down here. I'm still in buy dip and sell rallies when it comes to SQM.
Sentiment: Strong Buy