Unfortunately, Lithium spot is not really „free market”, it is all driven by China. IMHO they have decided, that it is in their the best interest to reduce the price of this metal (and derivated chemicals). Also nobody from us seen the Lepidolite garbage coming after us. I am not particularly happy about this development (believe me, I would be more happy, should the combined LAC/LAAC share price stay in the $16-20 range), but that is the reality and I do not see anything rosy in the pipeline of this year. I assume, that China can do what ever they want, unlike western mine operators, their reprocessing factories can run at loss for as long as necessary. What is the reason behind  is knows only to few and I am not one of them.

We are not in “fog”, but deep in mud (I have some other, more expressive names for the material we are in, but then WB would be forced to take my comment down). Current price of $10 200/ton means, that LAC still has theoretical 20% profit (their declared costs are $7-S8 000/ton). Another “good” news is, that the Lepidolite mining does not make sense anymore, because the spot price does not cover the processing costs (from ore to some meaningful concentrate) . The China spot price will probably go under $10/kg, depressing LAC share price below $2/share. Should it go lower, then we are in a risk, that GM really pulls out of the LAC deal and then we are in real troubles (not that LAAC is doing any better). I hope, Evans is looking into some alternatives, because without GM, the loan is probably not coming….

Anyway, just my 2 cents. Enjoy the reading.