It reinforces the narrative the Chinese are willing to subsidise...

It reinforces the narrative the Chinese are willing to subsidise loss making operations, be it China, Africa or now Aus.

Wouldn't say minres is taking on more debt, its the JV, loan would be repaid by earnings from the JV, it wouldn't come with any guarantee from Minres. That would imply Ganfeng expect future earnings and by extension a lithium recovery at some stage. The operation isnt miraculously going to cut costs which only leaves one option.

I wasnt expecting any financial support from Ganfeng for MtMarion, given the narrative around their Goulamina asset. If anything i expected them to be asking for MtMarion to shut down, noting MinRes is probably still keeping their nose above the waterline via the life of mine mining services contract earnings. Clearly Ganfeng need more spodumene, can only speculate as to why.

A shame really, the longer this persists the longer the recovery will take. Far too much capital is being thrown at loss making operations. Like investors in the space the companies reliant on lithium are taking a multi decade view and accepting of current pain.

Aimo