Yesterday we had yet another reminder of how tough it is out...

Yesterday we had yet another reminder of how tough it is out there as AGY ( a briner) joined CXO by going into C&M. Those two along with SYA / PLL are the only ASX listed small cap producers and all have been caught ramping up into a crashing Lithium market.

The reason I mention this is we have to live in the real World and see where that relates to SYA which is now the only small cap still producing.

The only reason we haven't joined them is it appears we are at, or getting close to, steady state production, so the expensive ramp up phase is largely behind us and should lead to a substantial reduction is production costs and the end of Capex related to achieving it. That leaves spodumene prices and we have no say on that and having no say on the price of the product you rely on Is not a nice position to be in but we're still standing and in with a fighting chance . The upcoming quarterly will give some clues on where things might head.

We can break even or even have a small loss for quite some time but there will be a cut off point with our cash position where decisions have to be made if Spodumene prices don't stabilise.

It's a white knuckle ride at the moment.

Cheers Whisky