Hi @Thesi ............."I consider that producing lithium chemicals would diversify this company from those that sell rocks and give the company a step up and take its head out of the oversupply clouds."
Did you listen to the Q+A section of the ALB quarterly presentation??
https://edge.media-server.com/mmc/p/nxt4m6e5
Not only is spodumene in current oversupply, but according to Luke Kissam so are lithium battery chemicals and converters. ALB seem to be expecting to pick up one/some converters cheaply over the next couple of years, reading between the lines of what he is saying about buying conversion facilities.
With the number of converters about to come online in the next year or so, way in excess of the growing demand, my expectation is that margins for converters will be squeesed greatly with some of them being in trouble financially.
Hence I don't think getting into hydroxide conversion is the answer to problems, unless a company had debts and gets paid for future supply to be part of a converter ( PLS, AJM, A40 all looking, MIN has a deal).
GXY are in the fortunate position of not having debt, so do have options. Personally I think the best option is to do a scrip T/O of A40, put their plant on C&M, then do lots of exploration on their large prospective tenements building up resources, and batten down the hatches until the whole industry picks up again in a few years. That is just IMHO of course.
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