The lithium mine market is not over yet? Tesla Lithium Mine supplier executives continue to increase their own shares

Executives of Piedmont Lithium, an Australian lithium miner listed in US stocks, are still increasing their holdings in their own company at a time when lithium mine prices are already high, indicating their optimism about lithium mine prices and the company's prospects.

As Tesla's lithium mine supply partner, the company's every move has attracted the attention of the industry. The company is currently exploring in Piedmont, North Carolina, after reaching an agreement with Tesla to supply Tesla with lithium once the mine goes into production.

Driven by high lithium mine prices, Piedmont's shares nearly doubled last year, closing up 98% at $52.46. By contrast, the S & P 500 is up 27%. Towards the end of 2021, two of the company's internal executives continued to buy shares in the company.

According to the company's latest filing with the Securities and Exchange Commission, Bruce Chuck (Bruce Czachor), the company's executive vice president and chief legal officer, bought 1933 shares for $100000, at an average price of $51.49 per share. After the acquisition, Chuck currently owns 10517 shares.

Chuck said he bought the stock because he believed in the company's long-term prospects. He declined to disclose the reasonable price of the stock, but pointed out that he had seen "the success and improvement of the company" and that the share price should return to earlier higher levels. At one point in March last year, the company's shares rose to a 52-week intraday high of $88.97.

On December 15, Jeffrey Armstrong (Jeffrey Armstrong), the company's chairman, had invested $125000 to increase his stake in 2500 shares, at an average price of $50 a share. After the increase, Armstrong now owns 25000 shares.

Armstrong increased his stake in the company several times in the second half of last year. In September, he bought 2500 shares at an average price of $51.09 per share at $127725, and in July he bought 2500 shares at an average price of $69.62 at $174000.

Construction of new lithium mines may begin before the end of the year

Langton (Tyler J. Langton), an analyst at J.P.Morgan Chase & Co, believes Piedmont may start building a lithium mine by the end of the year.

The company is likely to obtain a national mining license for the project by the end of the first quarter or the beginning of the second quarter of this year, he wrote in the research paper.

"given Piedmont's location, environmental image and low mining costs, we still believe it will be an attractive partner in the electric vehicle supply chain," Langton wrote. "

He rated the stock as "overweight" with a target price of $84.