LRS General Discussion, page-18249

It's pretty obvious that the Chinese are trying to short the shit out of the carb market to stop the likes of LTR from starting up and providing feedstock of carb to the likes of Ford, Tesla & LG. This is supported by the rumour today that POSCO (not chinese) are likely to bail LTR out.

It happened in the nickel market and drove virtually all of the local WA nickel niners out of business.

The things in LRS's favour are -

1. We're not in Africa.
2. We will be lowest cost quartile.
3. Unencumbered offtake.
4. 2 years until production.

Have a look over at the LLL saga happening with ganfeng. It's a nightmare scenario playing out in real time. Shareholders cant even sell as its in suspension.

ganfeng is not our friend. When you have chinese entities that are vertically integrated you can bet that they want the raw material prices to be as cheap as possible. Most of the input raw materials come from OS, OZ in particular, so they won't want to be paying too much premium to the OZ miners (aka the OZ government in company profits tax). Their end product, whether it be batteries or value-added lithium hydroxide, is where they want to make their profits.

Any market commentary I see from SMM, Fastmarkets, LME, BMI i view with a healthy degree of scepticism tinged with large element of truth. Deciphering their commentary can be tricky.

I'm personally re-assessing where I see the exit strategy to be in this lithium climate. If there can't be a transparent market for Lithium carbonate pricing then my view will be more conservative.

It's tough out there at the moment. Would be nice to see some July buying after tax loss harvesting is now over.