Hi astavrou,When you say most producers are in the RED, I would...

Hi astavrou,
When you say most producers are in the RED, I would like to know who these producers are and what it is they are producing. Is it spodumene, LCE or Lithium hydroxide?

The latter two are chemicals not ore. LPD is more a 'wanna-be' chemical company. If its Phase 1 Plant gets into operation it will be intending to produce Li2HO or Li₂O₂H (Lithium hydroxide monohydrate). At present, no Australian company is doing this, mainly they mine and export spodumene concentrate to China who in turn convert it to the chemical Li2O3 (lithium carbonate).

Furthermore, lithium chemical is a very segmented market, each OEM and battery manufacturer has very precise specifications that suppliers need to meet. Therefore, to say most producers are in the RED is an over-simplification, if you examine the majors such as Albermarle, Livent (formally FMC), and SQM (SQM is the struggler - as it is having problems meeting the Specs - so selling into China at spot prices and hurting the market), these companies still are making profits.

Australian spodumene producers are having a tough time of it (see the recent reports from AJM, GXY, PLS and MIM et.al). However, since LPD is not in this market I don't see your grounds for making this comparison; if that is what you are doing - I can only assume that it is what you are doing since you don't mention any companies you are referring in your posting above.

Whether LPD will be successful in its business model and strategy I do not know, many think it is a mountain too big and are eager to sell on any upward impulse of buy interest which is quickly overwhelmed and the drip drip drip of pips takes over again until another upswell on impending news again gets overwhelmed.

Remember, it cannot go below 0.001 if that's any consolation for you.

GL we all need it at the moment.