ASX Today, page-42999

Wrong (as usual).

There are no floor prices in the contracts and LTR is free to refuse selling if they want. This has been already discussed in these threads and was indicated by our CEO in an interview (at least).

All your fears (C&M, curtailments,…) CLEARLY indicate that supply is adjusting to demand. However demand is continuously increasing, so at some point (and most indicators and educated analysts assume that it will happen sooner than later) we will come into undersupply.

As I have mentioned many times, 90 % of our production is tied up in offtakes. So, who has to be worried: those who have their product tied up, or those who haven’t? VERY PROBABLY, the latters are those announcing C&Ms and project suspensions because they face a more uncertain future for their products.

Regarding prices, they will be finally set downstream by the demand of Li chemicals. Our spod will be sold on that ground. The higher prices obtained by our clients mean the higher prices we will get.

Marginal benefits at dire market conditions is better than losses. No body is predicting costs to be higher than prices once in nameplate (at ramp up, most mines not only spod ones run at a loss). Deciding to produce only 10 % is stupid at any mine: fixed costs are normally higher than incomes at those production rates (economies of scale).

Cheers.