How BOD's deal with that will also impact on SP but to a lesser degree
Exactly, In the case of SYA the collapse in the price of spodumene left the BOD / management with two options, C&M or find a way to continue production while awaiting a return to a better pricing environment.
They chose the latter and as a shareholder one also had two options, stay the course or bail...its not really anymore complicated than that. Anyone who stayed the course and understood the cyclical nature of commodities did so well aware of the potential implications, good or bad.
The price of the product you sell will always dictate the final outcome, cutting costs can only go so far without incurring further upfront costs to improve it. So what do you do, exactly what our BOD and the BOD's of all remaining spodumene producers did, maintain a strong balance sheet, cut back on exploration and other unessessary expediture and extract the maximum efficiency from the existing operations.. C&M still remains an option but in the meantime we're still producing with 12 to 18 months for spodumene prices to turn in our favour...I like those odds given EV and BESS uptake continues their upward trajectory.
Cheers Whisky
SYA Price at posting:
1.7¢ Sentiment: Buy Disclosure: Held
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