ASX Today, page-36049

LTR finds itself in a very difficult spot right now. When you think about it you would prefer to either have been in production and have a large cash balance (PLS, IGO) or be a well funded explorer who doesn't actually need to produce anything yet. LTR's timing could not be any worse, if they were to start producing lithium in this market, they would be losing money on every tonne produced. Given they may be lucky to have $100mil left when in production later this year, they are going to find themselves needing to make some tough decisions.

1. Mothball before they even get started/stockpile
2. Raise equity to cover the loans until the market improves

Given the last equity raise they only managed to raise $13.8mil from retail, you can imagine how ugly things could get if they are forced to cover debt with equity.

If the lithium price doesn't rebound in the next 6 to 12 months LTR could be a sitting duck for Gina given ALB are now not in the market for LTR. There is a very real risk that LTR finds itself moving towards bankruptcy very quickly and needing to put itself up for sale to avoid bankruptcy as early as next year.