Lithium is in a strong bull market
John Deniz, Managing Director at Paragon Funds Management, sees the current supply deficit in lithium continuing for the medium to long term. “We expect demand for lithium to be growing at 10-15% CAGR.” (Compound Annual Growth Rate) High demand has driven up lithium prices, attracting more capital to the sector, but they don’t see surpluses eventuating. If they do, they don’t expect them to be material. “History shows that new supply will most likely be delayed and won’t come on at design spec.” So how can investors take advantage of this? “You want to own large cap, world class, producing assets; you want to own imminent production; if you can find them, there’s even potential to own earlier stage, emerging assets.” In this video, he shares two ASX listed lithium exposures that they think are attractive.
2 stocks mentioned