Chart, page-13280

I don't think anyone is suggesting GXY won't survive. They obviously have cash to last a while. I still have it trading on about 6x forward EBITDA (see a previous post of mine), which is at the high end of valuations for resource stocks on the ASX. So it's not exactly *cheap*. They have no additional revenue from other assets coming through the door for many more years to come. So including potential future earnings that are many years away in any current valuation is silly. Is the market currently valuing BHP for what it *might* be earning in 5-10 years' time? No. Even high growth stocks don't have 5-10 year future earnings factored into valuations.

Demand will obviously increase for lithium but so to will production by incumbents and new production coming online. I think the reality for the supply vs demand argument somewhere in the middle. I think bulls are being wildly optimistic and conversely pessimists underestimating.

People can bang on endlessly about cash in the bank, assets, etc. At the end of the day, the market is valuing it based on its current earnings and not some fanciful future that hasn't yet happened. It's not a technology stock in 1999 that is valued on thin air.