Good News & Bad News, page-2524

• Some observations!
• Talison (Greenbushes) ramps up production in Oct 2019 from approx, 650,000 tpa to 1.3m tpa of chemical-grade lithium concentrate 2.4m tonnes expansion placed on hold till market conditions require.

• Talison reduces production trains from 7 down to 2 until demand rises

• Talison’s Kwinana planned annual output of 24,000t of lithium hydroxide in 2021. Just started production ramping up over 12-18 months

• Galaxy Resources slashes output from Mt Cattlin by 40% from now till end 2020. Has a lot stockpiled already

• A40 goes bankrupt

• AJM on the verge of bankruptcy and producing. Currently has a lot stockpiled

• PLS ceased production due to faulty production caused by plant issues. Has a lot stockpiled. Has been inoperative for 3 months so far.

• Lithium carbonate and hydroxide prices fallen through the floor

• 24/10/19 Wodgina Lithium Project’s three-stage 750,000 dry tonne per annum spodumene concentrate plant and associated non-process infrastructure is over 99% complete. Albemarle Corporation (NYSE: ALB, Albemarle) on 1 August 2019 to increase the interest in the Wodgina Lithium Project to be sold to Albemarle from 50% to 60% for US$820m.

• Mineral Resources has a lot stockpiled as well. Albemarle put on hold plans to build a 100,000 tonnes a year lithium hydroxide plant at Wodgina. Spodumene concentrate produced and shipped increased against the previous quarter. A total of 95,262 wmt was shipped during the quarter; an increase of 16% against the prior quarter’s shipments. The proportion of high-grade (6%) spodumene concentrate was down to 64% compared to 69% in the previous quarter. Mt Marian produced Q1 2020, 115,000t and shipped 95,262wmt. 3,300 tonnes of lithium concentrate shipped to Albemarle and 22,000 produced from Wodgina.

• Albermarle (Talison’s partner) announces lower income for 2019-20. Paid way too much for 50% of Wodgina, 6 months after the market peaked. Question is now, Will Albemarle walk away from that deal?

• Kidman Resources sold to Wesfarmers who have not made any announcements recently. All is quiet on the western front.

• AVZ missed the boat, director sold off and now SP is floundering at the lowest levels we have seen. Lithium prices still continue to soften!

What will happen when PLS starts production again added to Talison’s doubling of capacity and Wodgina coming online? Does anyone honestly see SC6 or carbonate prices rising in 2019-20?