Sigma Lithium (NASDAQ: SGML) exploded this week - rising 55%. What's the reason? The chairman of Ganfeng Lithium, the world's second-largest lithium processor, stated on Monday: Lithium demand is expected to rebound by 30-40% in 2026, and prices could reach 150,000-200,000 yuan/ton. This statement directly ignited the market, with lithium prices rising 9% on the same day, and even touching 100,000 yuan/ton on Wednesday.
Following Wall Street's lead, Canaccord Genuity on Wednesday directly raised the target price for SGML from CAD 8.49 to CAD 14.
This rebound has some substance - lithium prices have dropped 90% from their peak in 2023 and are now fluctuating at the bottom. Coupled with the continuous growth of electric vehicle sales in China, mining companies do have an opportunity. Although SGML is still 75% lower than its peak, this could be a chance for a turnaround.
However, the risks for mining companies are high, and if commodity prices fluctuate again, they will be in trouble. So this is more like a gamble, not a stable investment.
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Is there a chance for lithium mines this time?
Sigma Lithium (NASDAQ: SGML) exploded this week - rising 55%. What's the reason? The chairman of Ganfeng Lithium, the world's second-largest lithium processor, stated on Monday: Lithium demand is expected to rebound by 30-40% in 2026, and prices could reach 150,000-200,000 yuan/ton. This statement directly ignited the market, with lithium prices rising 9% on the same day, and even touching 100,000 yuan/ton on Wednesday.
Following Wall Street's lead, Canaccord Genuity on Wednesday directly raised the target price for SGML from CAD 8.49 to CAD 14.
This rebound has some substance - lithium prices have dropped 90% from their peak in 2023 and are now fluctuating at the bottom. Coupled with the continuous growth of electric vehicle sales in China, mining companies do have an opportunity. Although SGML is still 75% lower than its peak, this could be a chance for a turnaround.
However, the risks for mining companies are high, and if commodity prices fluctuate again, they will be in trouble. So this is more like a gamble, not a stable investment.