#Gold is Crashing Hard! Down $50!

#Gold getting Slammed! Last @ $1864 after hitting $1860/oz.

#MasterMetals https://bit.ly/MasterMetalsCharts

Dr. #Copper Has Clearly Broken Out. A 4 Handle Is Not Far Away $COPX https://bit.ly/MasterMetalsETF

#Mining & Metals ETF Charts

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.@BMO Raising #Lithium prices on #EV Growth- Upgrades $SQM, $ALB to Outperform

BMO analyst Joel Jackson, known for being prudent on Lithium, turning more positive on the sector for the following reasons:

 

1-      Lithium prices are only starting to rise. See charts below.

2-      We now see prices for lithium carbonate going from $6,75k/t today to $7,5k/t in 2021 and then average $10,0k/t by 2023

3-      WE now see EV penetration to grow from 3.9% in 2020 to 5% in 2020 and 12% by 2025.

4-      Recent data have shown an acceleration with Chinese EV sales up 120% in November yoy and Europe tripling

5-      Joel also sees lithium supply basically not rising in 2021 before a supply boost in 2022/23. See charts below.

6-      Joel is now using 18X EV/EBITDA multiple targets up from 12X justified by: 1- 20% demand CAGR for lithium, 2- Scarcity of liquid investments in the space, 3- ALB’s lithium unit has traded at 18X for the past five years

7-      SQM and ALB trade at 30% discount to their SOTP. Details below and attached. Joel is upgrading SQM to Outperform.