KDR 0.00% $1.90 kidman resources limited

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  1. 11,598 Posts.
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    I have taken the liberty of starting a new thread to potentially  discuss what is going on with the price and why .
    I have also taken the liberty of illustrating the situation (along with relevant technical markers) via a photograph of @h00ts most recent chart. 34899390 hoots I hope this is OK  and apologise if using your work here  as a resource is out of line.

    As background (looking  at the tea cup half full) one view in March was :
    “More than half of the world’s lithium is already produced in WA. By 2025, it is predicted lithium will bring in more money for Australia than iron ore”.
    https://thewest.com.au/news/wa/lith...ssing-plant-is-built-in-kwinana-ng-b88766174z
    How Kidman fits into that scenario -according to it’s own view is:
    Kidman Resources Limited (ASX: KDR) is a lithium developer. The Company, through a Joint Venture with SQM, develops the Tier-1 globally significant Mt Holland Lithium Deposit in Western Australia. A combined Mineral Resource Estimate in March 2018 confirmed Earl Grey’s position as one of the world’s most significant hard rock lithium deposits.” https://kidmanresources.com.au/


    Yet as you can see the price has collapsed remarkably given Kidman just won a prestigious award “Dealer of the Year “ at the annual Diggers & Dealers conference,  and reports everything is going ahead as planned ;
    -more offtakes are being negotiated with globally significant parties on top of the first agreement with  Tesla.
    -A Definite Feasibility Study is due to be tabled
    -Kidman also reports plans are on track to build a processing plant  near Perth  close to  Tianqi “largest processing plant in the world” which is currently under construction.

    Currently there is plenty of gloom in many lithium stocks,  but even accounting for the general global fall off in all things lithium  including SQM price , Tesla price and most  Australian lithium companies, Kidman is doing it hard


    Is this something long premeditated, carefully set up and representative of a genuine ‘short attack’ with a sinister motive or just opportunistic selling based on the fact KIdman Resources seems to be a bit ‘orphaned ‘ at the moment ...ie new CFO, has only just started, DFS not tabled, no news likely to be tabled while there is general mood of global unease?

    4FDC949A-13E0-4852-A877-5B0CA5A092DF.jpeg



    This story from Seeking Alpha describes instances where broking houses, hedge funds and more have mounted  a coordinated attack potentially aimed at driving a company into bankruptcy . https://seekingalpha.com/instablog/11442671-gerald-klein/3096735-anatomy-of-a-short-attack

    I feel that’s unlikely to happen with Kidman given its global significance, but current market cap has dropped to around $494  million ie the price is currently only about $100 million dollars more than Gina Rhinehart’s takeover  bid for  Atlas iron.
    To put things into perspective in the lithium field , Tianqi in late July approved a $516 million dollar expansion to double production at Greenbushes
    https://www.reuters.com/article/us-...sion-at-australian-lithium-mine-idUSKBN1KF0HU
    Tianqi has also approved a $300 million expansion at the Kwinana plant https://thewest.com.au/business/mining/tianqi-boss-cool-on-wa-as-global-battery-hub-ng-b88913960z

    Here’s a repeat of one of the earlier quotes ...”By 2025, it is predicted lithium will bring in more money for Australia than iron ore”.


    Here is another story on destruction via shorting  from Australia
    https://www.news.com.au/news/asic-a...l/news-story/289561514e3cf486cf1f55d0f4b080ce
    Last edited by sabine: 14/08/18
 
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