Antti Leinonen has written a piece about the American lithium company Albemarle.
The greatest risk to Albemarle’s financial performance is the market price of lithium. Several significant lithium discoveries have been made globally, and there is a risk that lithium supply will also grow rapidly in the long term. Additionally, new battery technologies could destabilize the demand outlook for lithium.
However, Albemarle sells only about a fifth of its produced lithium at spot prices, with the remainder sold through long-term contracts where the price is determined by certain boundary conditions. The company’s dependence on lithium is also reduced by its other business operations and minerals, which account for about 36 percent of revenue.
Subheadings:
1. Morningstar sees the company’s value more than doubling
2. Risks offset by reasonable valuation
Diamonds are indeed found here, but at ATH levels… 