Why don't you try to think clearly - put your prejudice against anything Chinese for a while - why Ganfeng was willing to loan $150 million to a loss making company? And why MinRes was also willing to put the same amount of money into the loss making operation?
Firstly, if you believe the reason Ganfeng loans the money is "in order to continue suppressing lithium prices" as stated above by
@kyle5035, then logically you have to believe the reason MinRes further invests into the loss making operation is to help that suppression of the lithium price.
But that belief is obviously absurd; stupid and irrational, because if the lithium price never goes up (because of the suppression) and Mt Marion keeps losing money, then Ganfeng and MinRes will lose all of their money invested in the company.
Show me: board of directors of public companies that would do such a stupid act to sabotage their own investment! Think clearly while you have your popcorn!
Secondly, if the first scenario above is impossible, then think clearly why big companies such as Ganfeng and MinRes would further invest into a loss making operation. The answer is obvious and simple:
they must believe that the price of lithium will go up and their investment in Mt Marion will be profitable!! There is no other explanation that makes sense from the business point of view.
As a matter of fact, in the news article posted by
@sabine above, the MinRes spokesman said: “Decisive action to lower costs ensures our two largest lithium sites remain well placed to continue to operate through the cycle and to capitalise when prices rebound.” I want to emphasis the words
"through the cycle and to capitalise when prices rebound" for you. Think clearly what those words imply.
They imply that the current low price of lithium is the result of the cyclical nature of lithium as a commodity, and because of that cyclical nature the price will rebound. In fact, I have said this, if the current low price of lithium is the result of manipulation by the Chinese (they must have done it perfectly that no one has any evidence of the crime!!), then there is no hope for a rebound, because if the Chinese has been able to do it this far, surely they can do it indefinitely.
Lastly, before you crunch the last popcorn in your mouth, think clearly what this latest spending by Ganfeng and MinRes to a loss making operation signify. Does it signify that the rebound is around the corner?
Do yourself a favour: think about that!!
(20min delay)