Tantallon Tech & Sustainability Fund Report, October 2024
The markets consolidated in October prior to the US elections. The fund declined 0.8% mainly on the back of a 1.5% currency hit from our non-USD holdings.
The month started off well when Rio Tinto agreed with us that Arcadium Lithium (early 2024 merger of Livent & Allkem) was the best undervalued Lithium asset and offerd a 50% premium over the going price. We had only re-built our position in September and ended up selling the share as we expect the deal to get done at the offered price. With some of the proceeds we have started a position in medium sized Brazil based Sigma Lithium in addition to our holding in top-5 Lithium producer Ganfeng. We expect EV and ESS penetration to continue to rise at a meaningful rate and given the slowdown in new mine development are keen to participate in the pricing rebound with established mid and large-sized producers.
