Are you saying that the Olaroz project has been losing money? That might be right but can you provide a link to the reference for that as it would surprise me.
The rule of thumb was that brine operations were high capex low opex and spodumene projects were low capex high opex. Maybe that equation has changed (as for one spodumene projects do not come cheap anymore). I bought into Olaroz near on 19 or 20 years ago now and the pitch back then was that once operating the project would purr along for many decades no matter the market conditions. I understand the cowboys that took control when Arcadium was established (from the merger of Orocobre and Livent) liked to use transfer pricing for their upstream projects as a way to "minimise" tax so I would take any numbers that Arcadium put out about Olaroz with a grain of salt. But anyway, I might have this wrong so would appreciate you providing a link to your source, cheers.
Even if that is so I am not sure how that affects Galan's pitch as surely its main project is a long life one. While long life of mine is not much chop for discounted cash analysis it is something that majors are very keen on.
GLN Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
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