"Not sure if this is would be good or bad news for the Lithium sector.
Talison Lithium in Greenbushes will be looking at voluntary and forced redundancies for staff this week.They are cutting production , production costs etc , and process plants 3 and 4 are on hold till end of 2022.I believe that Tianqi . the Chinese part owner has not paid monies for quite some time , and may not pay monies owed for quite some time.And further to this , Albemarle have slowed down the Kemerton Lithium process plant to one train of production .The original was for three trains , then extension to 5 later on.Train 3 has been put on hold , Train 2 has been slowed to pretty much on hold , and Train 1 is the only one currently under construction.Materials are very slow in coming in.Only 1 kiln is going in , instead of the original 3 also .
Source - Sons G/F works for Talison in Greenbushes and will know this week if she is out of a job or not .Source - i am on the construction at Kemerton."
The above is from another forum , if correct and given the state of the sector there is no real reason to doubt it , then it would come under the title of very good news for PLS IMO as pure Lithium hydroxide play.
It is not good times for any in the sector at the moment and the only reason to hold shares in it is the belief that it will turn around ,that then brings one to consider who are in the best position to benefit from that turnaround.
Personally I woud be looking for a company that has good leverage in the sector, a very large supply of good quality spodumene, has a plant that is now fine tuned , has supply contracts and connections with some of the biggest and best in the world and is in a position to ramp up quickly if supply demands it.
PLS fits that picture but is certainly not in a perfect situation, the plant at best only treads water at current production rates and prices and has net debt. ....however we are not seeking perfection, that's futile, just an ability to ride out the storm and be in a position to capitalize on the future, if there is no future in Lithium then all pure Lithium Companies are in strife.
Wth a MC of $578m and not making any money it is not necessarily cheap IMO, but is well placed to survive and eventually thrive in better times...
Cheers Whisky
(20min delay)