That kinda reminds me of when I was doing some work for Newcrest...

First 6 Last

Share
Profile

Follow
GCar

14,708 Posts.

9001

05/09/19

11:00

Post #: 40320742
Share

Originally posted by trentwilliam: ↑

GXY gets thrown around with everyone else because the oversupply is a purposful act, which GXY may be playing a part in.
When a commodity is supplied by just a few big dogs and then demand increases, it attracts a heap of small play miners to fill the gaps in the market... Which creates competition and limits growth potential for the big dogs.
So do they just sit back and say fair play and sing campfire songs together?
-No. They flood the market with as much lithium as possible. Fill China to the eye balls and fill all stockpiles to tank the price, making it basically impossible to run any lithium mine at a profit...
Big dogs run at even or maybe a loss for as long as needed until the little guys go crash, bang, boom, bust!
Once there is enough blood on the floor and the big dogs have enough market share again then things will return to normal and then there will be a more steady supply/demand going forward.
looks to me like the SP is gonna remain stuffed for another 6 months or so.... But at least GXY being so well placed with $$ vs debt that we seem to be on side with the big dogs.
This cycle is painful but if GXY can survive it then we will make it out in better shape than ever

Expand

That kinda reminds me of when I was doing some work for Newcrest - they had several mines with AISC well above the gold price... WELL above!
But, they kept them going because it was part of a bigger picture over the longer term. I remember being quite stunned at the numbers, at the time.
Big dogs alright!

GXY Price at posting: $1.06 Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

Reply

Top Stories

HotCopper Highlights, Week 27: G8 scalped, Domino’s drops the box, Gemlife brief hype & more

AII

Inside the Depths of Panasqueira: A Legacy Carved in Rock

OSL

OncoSil wraps up recruitment for key pancreatic cancer trial

THL

Tourism Holdings says Liberation Day tariffs smashed US RV demand

KGD

Kula picks up unexplored niobium play in Malawi, with surface samples logged

Trump chides Powell as Goldman call for calm. The RBA must be nervous

Week 27 Wrap: 40% China tariffs?; ASX +10% FY25; US Amazon price spike

Listen: HotCopper Wire Podcast 016 – FY25 ended up not so bad... but Trump unpause is coming

NMG

New Murchison Gold blasts off at Crown Prince as 'better than expected' results return

DMP

Is Domino's a steal after -25% plunge?

First 6 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

That kinda reminds me of when I was doing some work for Newcrest...

Top Stories

HotCopper Highlights, Week 27: G8 scalped, Domino’s drops the box, Gemlife brief hype & more

Inside the Depths of Panasqueira: A Legacy Carved in Rock

OncoSil wraps up recruitment for key pancreatic cancer trial

Tourism Holdings says Liberation Day tariffs smashed US RV demand

Kula picks up unexplored niobium play in Malawi, with surface samples logged

Trump chides Powell as Goldman call for calm. The RBA must be nervous

Week 27 Wrap: 40% China tariffs?; ASX +10% FY25; US Amazon price spike

Listen: HotCopper Wire Podcast 016 – FY25 ended up not so bad... but Trump unpause is coming

New Murchison Gold blasts off at Crown Prince as 'better than expected' results return

Is Domino's a steal after -25% plunge?

Featured News