Many analysts tend to overplay the impact of softening of lithium price if it happen, but it is unlikely to happen before 2025 due to surging demand of EV and grid/home storage and lack of new suppliers coming on stream.
Currently, the price for 5.5 - 6.% LI concentrate is around $1,000.US, even it is even out to $800 US average for the next 5 years, it is still a very high margin and lucrative business for GXY for many years to come - 50% margin.
I suppose the herd mentality is at play here - softening of lithium means the business is not viable, this could be the case for newcomers but not established players.
With the advantage of low cost brine asset, GXY is in a enviable position (compare to others 100% hard rock play) and will continue to strive and make good margin even at $11,000 to 12,000 per ton for LCE which is the base rate assumed in DFS anyway.
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