I also took an interest in electric vehicle industry metals (more specifically battery metals) miners recently, so will share some info.
I think its important to know the risks associated with investing with these stocks, and not just think in terms of price volatility and metal prices. Especially for junior miners, which are high risk high return. In general junior miners own a promising tract of land and little other assets. They go through multiple rounds of increasingly detailed studies on their land to verify that it contains sufficient metals to mine them economically, and how to mine them, before building the facilities to mine them. Each step takes significant time, and production might be many years away. Not to mention each step requires cash, which is usually raised through stock offering, diluting your holdings along the way.
Of course, if you are a short term trader, all these don't matter as much.
The metals are projected to be in short supply, but prices won't go up to too extreme values. If the batteries get too expensive, car manufacturers will just make fewer cars.
ASX COUNTERS !, Everything related to the Aus Sec Exc !
Nov 21 2017, 07:49 PM
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