Lowering lithium, raising Nickel weighting
Following an amazingly strong performance by lithium stocks in the past three months, we’ve moved lithium further down our preferred sector list and promoted nickel. Lithium equities are up c.90% in the past three months and look to have overshot in the near-term. While we’re still extremely positive on the outlook for lithium on a medium to longer term basis, our current equity basket prices are implying SC6 prices around US$500/t and lithium carbonate prices around US$13,000/t. While we believe that prices will exceed those levels during this cycle, we don’t believe that they will do so in the next...