New Lithium Related Article, page-2637

There are three key bits in this report.

1. "new technologies lower the cost of production"
2. "10% of global fleet"
3. $7200 by 2025

In terms of 1, well that is what should be expected. If GXY and others ramp up volume and quality, use alternate techs like direct and this trend continues to the converters then production costs should come down and prices should come down in order to lower costs and boost demand. But because production is cheaper and the volumes higher the lower prices will be relative. This then would help increase 2, by more than 10% and even if it didn't 10% is still a good number to be working with. Don't forget that due to this whole lithium scare campaign it is getting harder for producers to get financing to start up.

Is 3 such a big problem anyway? The original SDV DFS was based on a price of $5,500 and that did not even include the possibility of lower costs due to alt tech. So this is still just under $2,000 a tonne above what they said is required to operate a highly profitable mine at SDV.

So the data should be seen as scary to those companies with high costs, high loans and considering construction from scratch.

For GXY this worst case scenario from MS just reinforces the notion that even at those prices GXY would be profitable.

That's the thing companies like this like to do. Use data to make people see something the way they want you to. I have done the same, but in reverse. Trying to show both sides of the coin from the same information. A balanced view, seeing both sides is key and what people need. It is then up to each individual to take in that information and work out what plays out best in their view and take appropriate actions as they see fit.

And just like that 200 post milestone. Too many posts for the year. I need to slow down a bit. What's the difference since my 100th post in terms of GXY, not that much really but company performance low point is definitely behind us (not necessarily SP) and the future looks brighter then it did back then.