competitions said:
Lithium projects company Orocobre, share price nearly doubled in 6 months:
http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=ORE
"Toyota Tsusho Corporation (“TTC”) is the company’s strategic partner for the Olaroz Lithium Project, and has provided the capital required to build the operation through a combination of its purchase of 25% of the project equity and through the provision of project debt financing guaranteed by TTC during the construction phase and guaranteed by a Japanese government organization (JOGMEC) post operational commissioning. This strategic partnership has made it possible to finance the project on a highly favorable basis, and to be able to effectively market subsequent battery grade lithium production into Japanese and Asian markets."
While having some bigger companies funding the development of the project looks good it does seem that a lot of these mining investment stories end up as bad investments once they start production and ship the product, no one seems to want to buy the mined product for what was originally forecast.
When I put ORE stock code in google I see GXY next to it. http://www.google.com/finance?q=ASX%3AORE&ei=2Q3ZUrilJceQkAWkaw
I remember looking at GXY which is a lithium miner a while back and the price really went up right at the point of production but then fell.
And Lynas was the same http://www.google.com/finance?q=ASX%3ALYC&ei=Dg7ZUpC-L8e7kgXbvQE
Once Lynas started shipping their rare earth minerals the stock price dropped I remember seeing a stock market guy on a business TV show saying they just booked their first check for like $30k, short story no one seems to actually want to buy the stuff for any kind of price premium.
The stock prices seem to rise greatly in the excitement of big money coming but once they start production it seems to end up a sorry story.
I think EV companies like Tesla are cool but its a very difficult business to make good money in I reckon because the combustion engine is so cheap
comparatively.