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BHP (New York Stock Exchange: BHP) said Wednesday that it remains committed to boosting its pipeline of copper and nickel projects, but will not enter the lithium marketwhich he thinks is well stocked.
“We still do not see the demand-supply lithium equation is as fundamental as copper and nickel,” Sonia Scarselli of BHP Xlpor, the company’s division that invests in junior mining companies, told Reuters at the Association of Prospectors and Developers of Canada mining conference in Toronto. .
Meanwhile, BHP (BHP) expects global copper and nickel supplies to remain below demand as few new mines for either metal come online in the near future.
Some analysts forecast lithium prices to fall 25% this year, largely due to an expected slowdown in China’s electric vehicle market as government subsidies fade.
BHP’s (BHP) future “looks good, but the stock is not a buy yet,” writes The Methodical Investor in a recently published analysis in Seeking Alpha.
