I think you make good points about the longer term implications...

I think you make good points about the longer term implications of EV growth for demand.

The critics of SYR's strategy have been proved correct, and I have learned from the likes of cartek. My view, however, from here is that a market cap of $194m and net cash of around $90m is heavily undervaluing a plant and 50 year world class asset that has cost closer to $1b to develop. The scale back of production is very significant for the market as a whole. There is little risk now of a material cash burn. The risk now lies in the prospect that product prices will recover and the market return to balance. They will now wait until demand from the EV revolution (which I believe in) plays out, and are in a much better bargaining position with prospective customers who want a reliable, large and non-Chinese source of supply. There must also be a significant risk that a bidder emerges, Chinese or Aus Super plus Private Equity partner or another. A fifty year LOM makes this a prey worth locking down and riding out the short term, because it could not be replicated for under $1b and there will be considerable financing barriers to entry for other wannabe suppliers for some time now. IMHO the valuation is ridiculous for such a long duration asset. If I were short (and there are 60m short shares out there) I would be closing out the position, knowing that this is as bad as the news is going to get for some time, and the momentum in news (pricing in particular) may now change, or a bid come in at any time.