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Pricing comes back to the laws of both supply and demand and on this note European Lithium’s (ASX: EUR) Chairman, Tony Sage made some interesting observations, which are not only insightful in terms of the lithium industry, but also EUR itself as it expects to release an upgraded resource next week.
It is worth noting that EUR was one of the biggest movers in the sector on Thursday with its share price gain outstripping PLS as it surged 15%.
Harking back to Sage’s comments, he said, “The announcement by PLS demonstrates the level of supply constraints in the lithium market and provides justification for market capitalisation growth of emerging producers with high grade JORC resources”.
He went on to discuss the upcoming resource upgrade with FinFeed, and while the updated numbers are yet to be released, he said, “The pending resources upgrade by EUR will be a significant milestone in the development of the Wolfsberg lithium project in Austria”.
While we will discuss individual industry players in more detail at a later stage, it is worth noting that Wolfsberg already has an established high-grade resource as outlined by FinFeed earlier this week.
Since we highlighted the potential upside in the stock its shares have spiked circa 20%. However, investors who enter the stock at current levels could still reap considerable returns given the significant discount implied by peer comparisons.
EUR only listed on the ASX in September, and it has arguably slipped under the radar as it has maintained a low profile pending the collation of exploration results in advance of a resource upgrade.
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http://finfeed.com/mining/pls/pilba...positive-development-l…