So just as a bit of a worse case scenario example, let's assume SYAQ continue mining throughout 2024 and produce 180,000t. Let's also say spod stays so low throughout the year that SYAQ sell at an average loss of $US300/t. That would equate to a $US54M total loss for the year, or $A81M. SYA's 75% share of that loss would be $A60M. If we start 2024 with $A200M in the bank then at the end of 2024 we would have $A140M in the bank, assuming all other non-necessary spending (i.e. drilling, pay rises) is put on hold while we navigate through these tough times. Certainly not ideal and not what we want, but it would still leave us in a viable position to begin 2025. Could also add maybe another $A7M - $A8M to our bank balance for interest earnt on the reducing $A200M balance throughout the year. Also, SYAQ could possibly stockpile some of the spod and wait to sell it when the spod price starts to improve, thereby reducing that $A60M loss a little.
Consider now what could happen if spod prices stayed so low throughout 2024 for the above scenario to play out. In other words, what could such a scenario do to the world supply of lithium? We all know that if spod supply drops below spod demand then spod price goes up. Please don't take anything I write here as advice, financial or otherwise, because in the end we all have to make our own decision on what to do, but if you are in a position where you can hold and don't require your investment money from SYA for at least another 2 or 3 years then you have that option and might consider to do so. Alternatively, you could sell now and use what money you have somewhere else. I don't have a crystal ball, so I don't know what is going to happen tomorrow, let alone in a couple of year's time, but if you believe lithium is a required commodity and that demand for it will eventually outpace its supply then you also should believe that consequently prices will go up.
Please DYOR and don't base your investment decisions on anything I have written, because unlike BOT I am not a financial adviser, or any type of advisor for that matter.
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