When the current CEO took over lithium was selling for $60/kg. The CEO set about building a multi billion dollar company ie moved to bigger office space hired hundreds of people. Then lithium fell to it's current $9/kg. The company responded by subletting both office spaces at a loss and by mass lay offs. All the execs were signed on with a clause where if they were terminated salary would continue for a year, their severance pay. The current admin costs are blown out by the severance pay and the rental costs. Both of these costs will eventually cease and we can get an idea of what this shell of a company costs to run. The only real question is will the price of lithium recover. Demand is expected to increase the Chinese are clearly suppressing the price by flooding the market with below cost Lepidolite but how long will the current conditions last? I don't know. If you know please do tell.
LKE Price at posting:
3.5¢ Sentiment: None Disclosure: Not Held
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