Ben Richards from Seneca Financial Solutions joins us to share his current focus and optimism toward Lithium and its producers in addition to the future of electric vehicles. With Lithium prices having decreased significantly, he perceives substantial opportunity within the sector particularly with companies such as Pilbara Minerals (PLS). Emphasizing its Pilgangoora asset and the established production, he states that despite uncertainties regarding customer preferences, Pilbara Minerals remains a strong prospect in the industry with the potential for growing value.
Examining the current market scenario for Lithium, Richards observes the possibility of a short squeeze in the market closely resembling the trends of 2021. The rebound of Lithium prices is likely tied to an increase in this commodity, which, in turn, would potentially propel Pilbara’s share value, making it a company to watch closely in the upcoming months. He also shares his outlook on the crucial role of data from China and anticipates a structural trend supporting the growth for the next three to five years.
Switching gears, Richards turns his attention towards toll road operators, specifically considering Atlas Arteria (ALX). Despite recent headwinds resulting in a depressed share price, he notes the numerous assets it maintains in the US and Europe.