Good News & Bad News, page-35846

- Reduce production: I think some miners are looking to do this. Whatever it's manipulated or real supply/demand, reducing volume will help.

I hope, for PLS is that an option.

With its output, PLS certainly has the opportunity to hold back 10-20k somewhere and still earn "good" money. Even if the prices have come down so much now, we earn 400MillA$ per quarter.
The situation is certainly different for miners with low output. They may have to sell because the bills are coming in, because loans have to be serviced because investments may be pending. That's certainly difficult, but I think it's better to sell your stuff and have a low margin than to run the risk of bankruptcy, isn't it?And this situation is probably being exploited at the moment.

So where should a shortage and therefore a price increase come from?My greatest hope is that PLS will do exactly that and approach the market again with BMX and thus possibly achieve prices above the market and thus reverse the spiral. However, high interest rates and a low achievable profit are also likely to depress investment in new projects or make them less lucrative. If the EV revolution continues, this automatically means that supply will become scarce again on its own.

But I don't see this really kicking in again until the world's conflicts come to a standstill, the USA has slipped past the recession and the economy starts to pick up again. So I think a 2-3 year valley of tears is possible, unfortunately.