Very disappointing - not often that the perpetual optimist is caught saying that...
The weather is forgivable - the communication not so much.
As others are quick to remind, they have form when it comes to dropping surprises, and this is becoming a reputation they need to shake. If they want to restore confidence, they will need to adopt a no surprises policy with their investors.
A simple monthly announcement on operations would fix all of that -
* tons produced,
* tons sold,
* some brief commentary on any events,
* no need for dollars - leave that to the quarterly
Then as Phase 2 gets underway, a simple monthly update on progress
* some happy snaps
* progress comments
It shouldn't need much more than that.
* The Lithum market is strong.
* The price outlook is good
* The cash position is excellent
It is just the operations that are causing unpleasant surprises...
As far as the brine inventory question is concerned, the inventory is there to get them through the normal seasonality of evaporation. However, it looks like the December-March wet season was way out of the normal range - not just rain, but reduced solar radiation with its impact on evaporation.
Meteoblue shows February as particularly wet - maybe double the normal rainfall.
Soon enough the output will recover and this will have been just a blip in the improving operational trend. Just a blip to operations but a big blow to credibility - they need to work on that...
I am not sure I am convinced with their mitigation for future adverse weather events - I think I would be more inclined to add some pond area and live with a bit more concentrated brine inventory.
