General Discussion Banter GLN, page-15810

https://www.marketindex.com.au/news/real-production-costs-at-asx-lithium-miners-will-shock-you-just-one-mine-is

Moin,

Finally, finally an article that I have been waiting for a long time, as it addresses the issue of the lack of AISC in the lithium industry on the one hand, and on the other hand the wrong strategy of large players to avoid production cuts in my view.The established spodumene producers are certainly creating a larger moat for developers and explorers. Given the costs, this is expensive "fun".
PLS's profit last quarter was largely based on interest income.The current worldwide overproduction volume is around 10 %.Among the top ten producers are 5 Western and 5 Chinese companies.Chinese producers do not act independently, so they are excluded from my following considerations.

The now semi-state-owned company SQM produces profitably, but has to hand over more than 75 % of its margin to the state. It is clear that the state is in favour of expanding production.

The fact is:

• apart from Talison, no australian spodumene producer with operational activities earns money from spodumene.
• Chinese converters still earn money, but the business is no longer rosy either
• the battery giants CATL & BYD are making excellent money and their market dominance is further promoted.

The questions may be asked:
Is it a smart strategy for Western Australian producers to subsidise their own production in order to meet their supply obligations on the one hand, but on the other hand to stabilise low prices in the medium term without cutting production, thus throwing money down the battery manufacturers' throats?

Would it make more sense to think about standardised minor production cuts for western producers, perhaps 10-15%, in order to achieve higher marketprices and thus profits for 85-90% of their production in the short to medium term?

When can discipline be expected here? With regard to PLS, perhaps when the favourable LRS takeover has taken place?

Anyway, for BRINE low-cost producers it is less dramatic.

P.S. I would very much welcome a uniform standard for the publication of AISC.Galan would not have to shy away from comparison.