Its the end of May and they're still mining? Are they looking to maintain mining and production for the full quarter? Maybe to replenish stock levels ... or TO PROVE their claim they can reduce costs to previously stated levels of US$320-350/dmt CFR China,
when a full quarters production is achieved??? The Mar20 Quarterly Report didn't suggest this.
That would involve a generous cash outflow for the quarter but damn, it would put a lot of doubters down for the 10 count ... and a rocket up the share price.
@19char90The announcement that interests me the most, is General Lithium (finally) requesting their Stage 1 offtake supply for their new 60ktpa LiOH plant. They already have 22ktpa operating at Jiangxi and Jiangsu. I don't know who is supplying the raw material there but a 60ktpa plant is going to require around 450ktpa of SC6.
That will absorb some oversupply and may well influence prices by the end of the year.Ganfeng have plans for another 50ktpa soon and 200ktpa by 2025.
A lot of this is mentioned in PLS's last Corporate Presentation on Page 17:
http://www.pilbaraminerals.com.au/site/PDF/6690b3a9-31af-493a-b1ab-3c73070287b3/CorporatePresentation
The expected POSCO announcement, is for the signing of the Joint Venture agreement to establish a 40ktpa LiOH plant in Gwangyang ... but its been getting delayed for a year now. It was expected before 30Jun20 but
the last Quarterly Report said a decision is expected sometime in Q3CY20. The revised Stage 2 FID will go ahead when/if this announcement occurs.
Svolt looks the smokey now with its recent NMx battery tech advancement. More SC6 demand from Great Wall as a consequence?
Then there's still the dilemma currently facing Greenbushes. Its a left field Black Swan event but financial entanglement resulting in legal action could cause a Chinese finger trap and who knows what for Lithium prices.
Unlikely but any resolution looks difficult. Now Whisky49 reposts this advice of Greenbushes redundancies, cutting of production and production costs.
What would a supply disruption from the largest Spodumene producer in the world, do for Spodumene prices?
(20min delay)