The go slow is inevitable, understandable and IMO the correct decision. There is not point trying to rush more supply into an already oversupplied market at the current prices. Olaroz is at the stage where long lead items i.e. ponds have progressed to a stage where current spare capacity can be utilised with minimal capex. My view is that the next stage for the lithium industry is for lithium chemical prices to rise to a point where lowest cost producers will start to utilise their current sunk cost overcapacity. The next leg up would be for the prices to rise to a point where any brownfield sites, i.e. where little capex is required (Wodgina comes to mind), start up. When that will happen I have no idea but I can't see it happening 2020. I think the name of the game ATM is reduce costs and preserve capital which is what ORE seems to be doing.
P
ORE Price at posting:
$2.13 Sentiment: Hold Disclosure: Held
