Good News & Bad News, page-37818

Master strategist , nice post re winter of discontent. One of the things that has surprised me has been how quickly high prices have rectified high prices.

We have often had the narrative that well "mines take five years to get fired up and operating" but on the surface it appears that Lepidolite has sprung out of nowhere and a further meeting of demand has come from DSO. Consequently while demand has increased in the last year we have moved into oversupply territory. That to me was unexpected. Now with the price down DSO and Lepidolite (Plus chineese subsidies on production ??) will fall out of contention for the meantime.

So looking forwards how quickly is future demand going to be able to be met? I fully expect some DLE operations to be able to produce the goods at a reasonable cost in the future, this and the ability for DSO and Lepidolite to ramp up in short time, our summer time may not be as bright as recently experienced.

I remember Ozblue, before he exited, posted an analysis of lithium deposits that could be put into production. I think he was startled to see the volume that could potentially come on line and subsequently lead to him selling out.

My take is that PLS is a solid sensibly managed operation and with expansion will continue to "post the goods". The summer though, may not be as bright as the underlying greed I have tucked away in my bones, would desire.
Cheers