Agreed. The obvious culprits is PLS and MIN, both sending massive amount of Direct Shipped Ore (1 to 2 % of lithium and the rest are waste) to China. Although this has been stopped last year, I am sure all the spod producers in Australia still suffered from the overhang. PLS got off the ground running using expensive loan facility and still paying for it, still struggling to get Stage 1 to nameplate production and quality issue sorted, but already aggressively pursuing massive Stage 2 and 3 with little funding in hand. Now, they are engaging one a beans counter firm trying to offload 49% of the company, I suspect for survival. Simply too ambitious and at the same time flooding the market, not too sure still progressing with Stage 2 and 3, hopefully not. Hopefully Albemarle will put a halt or delay the Wodinga mine with MIN, a massive $1 b investment for 50% stake, if that go ahead as planned, no doubt the like of MS, MaCBank, UBS will shout from the roof top about the oversupply. The massive demand will come, but likely from 2021, in the meantime is the survival test for many to ride out this year and 2020.
GXY Price at posting:
$1.34 Sentiment: Hold Disclosure: Held
