Post Reply
81-100 of 842
https://www.fastmarkets.com/article/3888917/alita-suspends-securities-trading-on-dwindling-lithium-prices-continues-spodumene-production
""The collapse of the lithium carbonate and hydroxide prices in China has caused Alita to stop trading," a source close to the company told Fastmarkets.
"The agreed floor price of $680 per tonne for Alita?s lithium spodumene has become unsustainable to our offtakers due to the lithium carbonate and hydroxide rapid price decrease in China over the course of the past year," the source added. "
""The collapse of the lithium carbonate and hydroxide prices in China has caused Alita to stop trading," a source close to the company told Fastmarkets.
"The agreed floor price of $680 per tonne for Alita?s lithium spodumene has become unsustainable to our offtakers due to the lithium carbonate and hydroxide rapid price decrease in China over the course of the past year," the source added. "
Requested for suspension until 3 Sept. Think maybe compnay run out of cash liao. Director and mgmt eat ba ba liao. Now just let company rot......
UOB KH alot of counter also restricted la.
that is y i never use their service
that is y i never use their service
TraderBen ( Date: 07-Aug-2019 23:35) Posted:
|
o o not a good sign ....
Uob Kh restricted counter ..
Viewpoint: Lithium market struggles for balance
Published date: 01 August 2019
Share:
Lithium prices remain under pressure as the commodity market at the centre of the electric vehicle (EV) revolution struggles to balance supply and demand.
Delivered China prices for 99.5pc lithium hydroxide, a chemical increasingly used in lithium-ion batteries for EVs, have dropped by nearly 48pc in the last year, and by nearly 30pc since the start of this year, according to Argus spot price assessments. Prices for lithium carbonate have similarly dropped by nearly 40pc in the past year and close to 20pc year to date.
Production of battery materials is shifting towards using lithium hydroxide for chemical stability in cathodes with higher nickel content, which offers longer vehicles driving ranges.
Prices in longer term supply contracts, against which much of the world' s lithium is still traded, are also falling. Contract prices for lithium ore from the Mount Marion project in Western Australia were reduced by around 10pc this week, the latest of several reductions since the first half of 2018.
The downturn follows a steep and partly speculative rally driven by the prospect of surging demand for batteries for EVs. But by most measures, this is an aggressive price correction, especially given the continued strong growth of China' s EV sales, and the rapid development of EV production in the West.
At the height of the lithium rally in recent years the talk in the market was that there were enough lithium units waiting to be mined or retrieved from brine deposits, but the industry was in a race against time to deliver enough projects to feed accelerating battery demand.
As investors piled in, the market started to look structurally oversupplied, as multiple projects emerged in the Americas, Australia and even in Europe, mostly aimed at supplying China' s burgeoning battery sector.
Australia' s production is expected to increase to 335,000t of lithium carbonate equivalent by 2020-21 from 272,266t in 2018-19, the country' s department of industry, innovation and science said in early July. Australia has around 17pc of global lithium reserves.
Rebalancing?
Supply and demand are expected to move towards a balance in the next few years. But the pace of demand growth will be subject to distortions as governments intervene through subsidies and other policy instruments, as well as by changes to battery chemistries and by wider macroeconomics.
On the supply side, the current roster of new projects will change over time as higher-cost production is pushed to the margins, and in many cases scrapped.
Expansion at current producers, together with new projects, could double global production capacity to close to 150,000t of contained lithium by 2023, with demand growing to around 83,000t in 2023 from 50,000t in 2018, Argus Consulting said.
China EV growth slows
EV growth in China has slowed slightly this year as the government has tinkered with subsidies, and as wider automotive demand has softened.
China' s EV sales in January-June rose by 49.6pc year on year to 617,000 units, slowing from a rise year on year of 111.6pc in the same period of 2018, the country' s automotive manufacturers association said. It expects EV sales in 2019 to hit 1.5mn units, down from an initial forecast of 1.6mn units. China accounts for about 60pc of EV sales but Western automakers are investing aggressively in new electric models, spurred on by the demise of diesel as an environmentally acceptable fuel.
Belgian battery materials producer Umicore, the world' s biggest cathode producer, this week revised its sales projections, citing slower growth in China. Umicore projected cathode material sales of 100,000t by 2019 and 175,000t by 2021. The firm now expects to reach those targets in another 12-18 months.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
In summary, oversupply will last at least until 2023 with price of lithium under pressure till then. Alita will be under a mountain of debts for at least 5-6 years and it will probaby take another 5-6 years to clear those liabilities. That is if Alita can last till then.
Shareholders shold request mgmt to do a cashflow projection for the next 5-6 years to see if this company is really sustainable. If EV growth dont pick up, Alita will close shop soon.
ASX trading further down to AUD0.071 now. After FX conversion is SGD0.066. SGX trading at SGD0.075, so a 13% premnium. The gap is closing. When will SGX Alita caught down to ASSX Alita?
How will company find more money to financial mgmt greed of high pay in the guise of working capital for the coming quarter and the next few?
How will company find more money to financial mgmt greed of high pay in the guise of working capital for the coming quarter and the next few?
sheerluck ( Date: 01-Aug-2019 09:56) Posted:
|
Articles published in NextInsight may be from NextInsight team or retail investors who has vested interest. So must check out the author as well.
eric998 ( Date: 05-Aug-2019 15:48) Posted:
|
wow, that' s bad. i always thought their company visits r quite interesting.
Jamesbond008 ( Date: 05-Aug-2019 12:04) Posted:
|
it is not a credible publications.. do you own homework better.. by the time the publications come out.. BBs already collected low and you are the one who bought form them at high price..
Jamesbond008 ( Date: 05-Aug-2019 12:04) Posted:
|
Selling now is correct because Alita is likely to raise fund from shareholders to sustain operation (include mgmt fat pay in the name of working capital + bank wants their interest and shareholders to take over debts!). This will inevitably led to lower price given the situation with the company cashflow in the current low price spodumene market. You can buy back alot cheaper later when their announced right issue at huge discount to market price. So many past example as case studies liao.
6 cents? I can't believe the misinformation. It's $32 million for 168 million shares work out to be $0.19+.
By your logic, it's already below the placement price, right?
balasuperman ( Date: 05-Aug-2019 11:00) Posted:
|
I will never trust any companies written by NextInsight.... They caused me to lose a lot of money already
168 m shares for $32m gives ard 0.20 per share.
Inching toward wc tgt 65
This may very well happen. Penny stocks, when they go lowest in price usually means something is rotting at the core. Stay clear.
balasuperman ( Date: 05-Aug-2019 11:00) Posted:
|
jialat broke 85.. game over?
eric998 ( Date: 02-Aug-2019 16:42) Posted:
|
Alita resources just did a placement of 168 million shares for 32 million Australian dollars. Which works out to about less than 6 cents per share. Now at current price if the shareholder disposes of his shares they are already looking at 30% profits. Later they just need to buy back the stocks when it reaches back to 6 cents. So I rather wait for price to drop to 6 cents before looking at this stock.
China is no going to be pushed over this time. Come Monday there will be blood......
reaching.. trade with care..
eric998 ( Date: 31-Jul-2019 13:49) Posted:
|