$37.87
-0.56 (-1.46%)
Sociedad Quimica y Minera (ADR) (SQM)
CAPS Rating:
The Company is a producer of potassium nitrate, iodine and lithium carbonate. It also produces other specialty plant nutrition products, iodine and lithium derivatives, and certain industrial chemicals, including industrial nitrates.
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Don't know if my entry point is real good or not relative to recent November price declines, however, this major producer of Lithium-Ion materials for the world Lithium market can be expected to continue to grow as demand for electric car batteries increases. Lithium is the current 'next generation' battery technology of the near future. There are others (see what CAT is working on), but with the release of several L-Ion battery based cars coming out in 2008, now would be a good time to invest in producers of industry materials. Check google-earth in northern chili to see the pools. pretty hard for an earthquake to wreak a lot of damage in such a remote place. This business is survivable and hardy - even after natural disasters.
Northern Chile is very prone to seismic activity including earthquakes and volcanoes. But hey, it's one of the best places in the world to find lithium and tons of other minerals! There are communities who who fear contamination from major mining co's such as in Argentina. In some cases mining co's. could possibly be contaminating the drinking water. This lack of communication between the co's and the locals can be politically manipulated creating local discontent. "Grassroots" cooperation and good communication with the locals (more important than politicians) is critical for a mining company to have long-term success in this region of immense mining potential! That's my basic observation while living in the Mendoza, Argentina side of the stone wall (Andes mtns.) and knowing some local geologists.