Q: I hold ALB and am down 50% in both a registered and non registered account. What are your views on ALB and lithium. Is it time to move on? If so what companies in the material sector do you suggest as a replacement. Thanks again Peter
5i Research Answer:
The lithium market is not dead, but some recent trends (lower EV sales, for example) have shifted investor sentiment. But ALB is in fine financial shape, has other production, and EPS is expected to more than double in 2025. Cash flow is high and free cash flow conversion is improving. We would see it as a HOLD for the sector, after the decline. NTR can be suggested for a replacement if one wants to exit lithium. NTR is much cheaper and offers a higher yield as well, with upside in a China economic recovery.