It has been a decade of lows for commodities after posting 7 declines in 11 years, but we have seriously underestimated lithium. It is back with a vengeance in 2019.
The commodities market endured yet another annus horribilis, with just four commodities—natural gas, uranium, cocoa and wheat—recording any uptick at all. Last year’s 12 percent slide by the Bloomberg Commodity Index–spurred by 20 percent-plus declines by industrial bellwethers like West Texas Intermediate crude, steel and platinum—came in the wake of two years of modest gains.
Viewed against that kind of backdrop, lithium’s 50 percent correction that snapped a multi-year winning streak appears less vicious. It is important to remember that prior to the crash, lithium had enjoyed a meteoric rise with prices doubling since the beginning of 2016 and nearly quadrupling over the past decade.
European Metals Holdings Ltd (LON:EMH) are an Australian and UK listed mineral exploration and development company advancing the Cinovec Lithium / Tin Project in Czech Republic. Cinovec hosts the largest lithium resource in Europe, and one of the largest undeveloped tin resources in the world.