I took the spike as an opportunity to sell my entire remaining position in the mid 3.30s. Might consider re-entering 2.70-2.80. Just got that funny mining feeling ... things always go slower than expected.
Drill results have little meaning right now. So what if "reserves" double? How about a announcement about processing plant plans, cost to build and schedule. Brine in the ground is not once ounce of Li delivered to anyone. And plant yield and cost to produce Li are a total guess.And several major financings are needed. You guys are 3 years premature in your hopes. Relax, be patient.
Then play somewhere else. Welcome to ignore.
Pretty hard to hype a commodity. 65%+ of the market is auto cc and the auto companies are doing everything they can to reduce PD usage. There are only 2 scenarios I can see that can really move the price needle
Russian govt decide to buy all Norilsk output and holds it off the market. They can do it for just a few $B. It will also enhance the value of the existing stockpile which IMO is still significant.
China is the largest auto maker. I'm sure they have a small army of geologists roaming that immense and geologically diverse country looking for all crucial minerals including PGMs. If they make a significant discovery ...
First the majority of SWC income is from Pd not Pt. And WIPC does not get a better price, It looks like all they do is generate more reports. From their latest qrtly report
"As the market is forecast to have a deficit of 455 koz in 2016, above ground stocks are expected to end the year at 1,950 koz."
This is why I think talk of "deficits" is misleading. By their own estimates WIPC there is another 5 years until above Pt ground stock are finally used up. And that is assuming demand holds up - 5 years from now how many EV will elim need for ICE cc. How much thrifting will the cc makers come up with? PGM miners are facing a long term demographic , social and technological headwind.
" that news (the catalyst) re. the results of the deeper wells is due in the coming weeks."
No one cares and rightly so. How about some news about firm plans for processing facility, what it will cost and est completion date? Meanwhile drilling just creates prairie dog condos.
Old news. From PR
"As a result of additional shares being issued, Shkreli’s stake in KaloBios would shrink to about 14 percent from about 47 percent."
When that is implemented the number of outstanding shares will be increased by about 3.3x.
That's quite a dilution for current stockholders.
If you look at the fxempire PD chart with one day ("d") interval you will see a massive H/S pattern. PD sitting right at the neck. If it closes under 525 or so, $450 is not unreasonable. If BREXIT vote is leave, AU will go up, dollar will go up and PD will go down. Long SWC positions definitely should have some protection.
" GILD has the money to buy them"
Really? Your math is funny. MRK mkt cap is 159B. GILD has 8.2B in cash. Plus you would have to pay some premium.
With Mrk PE at 35 and GILD at 7 so if done with stock GILD holders take a huge it.
You want to acquire when your stock is expensive relative the the company you are acquiring.
I guess you are just frustrated so the first thing that pops into your mind comes spilling out.
BTW: More likely MRK could buy GILD using their inflated stock.
Sold Sep 16 $80 calls for $2.10. Hedge loses money only if AWK closes above 80.10 on Sep 16. If it goes sideways or down I have $2.10 worth of protection.
Wait we are waiting for is for production to ramp up. Don't confuse thruput with turnaround. IMO weakness is due to the fact that production ramp up has been slower than expected. Th
From ore to concentrate is not that long. Longer is the smelting and refining process. From ore to bars can be 3 months or more - smelter is nearby at Anglo-Amer Plat. I don't know who does the refining.