Lithium and cobalt oversupply fears overblown

Paragon Funds Management

January saw volatility return to Lithium and Cobalt markets, both correcting on oversupply anxiety. Glencore announced that its Democratic Republic of Congo (DRC) project Kamoto will expand its Cobalt output to 34ktpa by 2019 (~30% of CY19F global demand). This news impacted Cobalt stocks globally on near-term oversupply concerns. Show More

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Infrastructure stocks looking most attractive in 2 years

Paragon Funds Management

In a perfect world, we would identify a particularly attractive thematic, identify the best companies exposed to those themes through company meetings and our own internal research, and then let the rest of the market play catch up. In practice, however, sometimes our long-term themes persist while the ability to... Show More

HFR is looking to do 500ktpa of SOP but will be higher opex than AMN. And if you include the capex for HFR’s MOP mine it's much higher capex. In the last decade the industry has actually moved away from HFR's Mannheim production as this process actually manufactures more hydrochloric acid (a big issue) than SOP. Finally, HFR's assets are in Spain - a risky jurisdiction for permitting & development - and has a fully diluted market cap many multiples of AMN's.

On An advanced project in an undersupplied market -