CXO's problem is likely to become a concern amongst Lithiums and...

CXO's problem is likely to become a concern amongst Lithiums and we may see more.
The problem we are seeing is not so much the falling Lithium price fuelled by supply fears its really estimated operating costs have been blown out of the water.
For example the CXO ann in July '21 Scoping study had:
An average concentrate price of $US731/t.
Operating costs of $US372/t, 96% margin
ASIC cost of $US731, 61% margin
The latest operating costs excluding royalties were just over $A900/t, $A1067 including royalties. Shows how brittle these documents are. The industry is still fairly new to it all or was then.
CXO's challenge is control the controllable - recoveries and costs
If prices fall lower into 2025 we will see many Lithiums in trouble especially those with debt. Cost blow outs are killers.
I bet that many DFS/scoping study documents contain well underestimated costs. They scoping study is supposed to be +/- 30% accuracy - hmmm.
Simon and GF will be very conscious of getting this project right and preventing cost blowouts.
We will not be seeing many new projects or financing on board for a while until all this settles. No many financiers will have faith in FIDs right now.
This will lead to supply deficits down the track

.