Welcome to Finance and Fury, the Say What Wednesday Edition

Today’s question from Zed “I recently noticed that Australia seems to be opening lots of lithium mines as the demand for Electric Vehicles rises and we turn away from oil. Is Australia at risk of their lithium mines being undercut by competition from South America in the near to medium future?”

 

Today:

  1. Demand for Lithium
  2. Who is providing it?

 

What is Lithium?

  • Alkali metal
  • Used in rechargeable batteries
  • The supply is increasing

 

Where Lithium comes from?

  • Lithium from brine (70%)
  • It can take over a year to extract the Lithium through evaporation
  • Lithium from hard rock (30%)
  • Hard rock drilling and extraction through traditional methods
  • Lithium can potentially be recycled

 

Who are the producers?

  • Bolivia, Argentina, Brazil, and Chile
  • South America produces a lot of the Lithium
  • Australia holds more than 2.7 million MT of identified lithium reserves
  • Chinese companies own more than half of the world’s production

 

What are the Issues?

  • Oversupply dropping prices
  • Australia has a low cost of production
  • Perhaps there is lithium hoarding happening?
  • Long-term issue is the alternatives to lithium-ion batteries
  • The Ryden dual carbon battery, sand battery, and sodium ion battery

 

Looking to invest in companies in this space:

  • They lack the circle of competence
  • Price takers rather than price makers
  • Lithium miners have dropped by 50% in prices
  • A look at 3 ASX companies – Pilbara minerals, Galaxy Resources, and Orocobre Limited
  • Price is based around fair values

 

Summary:

  • Australian mining of Lithium isn’t in too much risk from South America
  • Long-term risk for Lithium is the global demand dropping from alternatives
  • Very speculative – prices determined from supply and demand

 

If you want to get in contact you can do so here at the contact page.

 

 

9 reasons your loan may have been rejected

Episode 38 9 reasons your loan may have been rejected Welcome to Finance & Fury. Today we’re talking about 9 reasons you may have your home loan application declined. We have Jayden Vecchio this episode running through the 9 reasons. As a result of the recent...

Nailing Business Cashflow Forecasts, whether you’re established, looking to expand, you’re a start up or a business in trouble

Hi Guys and welcome to Finance and Fury’s ‘Say What Wednesday’ Episode. Today we’re joined again by Nick. Our question today comes from Justin who asks, “Our building company recently went through issues with its cashflow, so as directors we halved our wages to help…I...

How our monetary system has been either your best friend in the past, or currently your worst enemy

Welcome to Furious Friday – Today – Continue with the Lucky Country Australia – Today – want to run through how a lot of our luck – especially if you have owned property, comes from the design of Australia’s monetary system since the early 90s. But diminishing...

Say What Wednesday: Is this the solution for pollution?

Welcome to Finance & Fury, the ‘Say What Wednesday’ edition. I recently received a great email from Nick, on a fantastic topic. So, I’ll read most of the email as background to today’s discussion;  “Hey Louis, I’ve recently be thinking about an issue that I think...

Financial crash proof your share investments

Episode 11 Financial crash proof your share investments Welcome to Finance and Fury! Financial Crash proof your Share investments There is no way to control the rise and fall of investments but focusing on what you can control makes all the difference! Behaviours lead...

Say What Wednesday: The ups and downs of Bitcoin – currency, investment opportunity, both… or neither?

Say What Wednesday The ups and downs of Bitcoin - currency, investment opportunity, both... or neither? Today’s question comes from Richie, who asks, “Have you been following the Bitcoin ETF at all? If so, are you able to do an episode on this and if it is worth...

(Intro Series) From ‘Puzzle’ to ‘Map’

Intro - Episode 3 From 'Puzzle' to 'Map' Welcome to the 3rd part of the intro series for Finance and Fury. Today let’s start with a bit of time travel. Picture 1500’s, London. All the guys have hipster like facial hair, accessories, the big beards, the little curly...

Tax Scams and the Brexit Mess

Welcome to Finance and Fury, the Furious Friday edition. Today we are discussing what is happening with Brexit? At the time of the release of this episode, we will be approaching the 11th hour of the 2nd deadline to negotiate a deal for the UK to leave the EU. Why...

Furious Fridays: Dissecting Labor’s plans for housing affordability

Furious Fridays Dissecting Labor’s plans for housing affordability Welcome Finance and Fury’s Furious Friday episode. Today we’re answering the question we asked on Wednesday about Labor’s polices and their promises to lower housing prices/increase affordability. If...

The RBA rate drop will further compound our ‘low growth trap’, rather than stimulating the economy

Welcome to Finance and Fury, The Furious Friday Edition In this ep, we continue looking at the lucky country look at a downward spiral in growth – low growth traps – and how it is created by what is meant to help growth?   Low growth trap – The big problem comes...

Pin It on Pinterest

Share This