DF our analogy to rotten tomatoes still being snapped from the...

DF our analogy to rotten tomatoes still being snapped from the farm is also a huge indicator of demand.
China wouldn’t be signing more offtakes from Australia, and in fact would be rejecting deliveries by now esp substandard grades if there is an over supply.

Not many expected China supposedly subsidised their production by as much as $200b++ that caused the prices to plunge.
That’s unsustainable imo. This is why they’re acquiring projects in Africa, even small ones with very low grade. And they’re buying from Australia sc grades low as 3.8.


The current market has exposed even the so called lithium heavyweights to be very vulnerable.
what I expect to happen is that investment in the sector will continue to plunge, some projects will not come online, turning the oversupply narrative upside down.


I’d view every producer and miner as our competitor. They will also try to kill Ltr but they significantly risk their viability by burning their cash and flooding the market. I recall when working for a big company, they would occasionally halt all travel and capex for 3 months periodically, even opex, office supplies etc limited limited, not so much about morale but it’s all about survival; they even asked for volunteers in countries where its legal to do so to have a pay cut until conditions improve which were later reimbursed. It just shows you the fiscal discipline required rather than pretend it’s okay to keep burning the cash reserves. So it’s good for Ltr to halt spending on anything else and focus on making the 3mtpa KV to operate and start the cash flow.

Alb’s decision to let go 300 people is just the beginning. Of course high cost producers will be in the same trajectory. Which is why LTR will have to perform as expected and we should get a very good indication shortly.