As per classical textbook market behaviours and history, the ongoing optimisations, closures and reductions in production forecasts by producers in the lithium sector could be laying the foundations for a future recovery.Yesterday, Liontown became the latest miner to ‘optimise' its future production in response to low pricing.While the carbonate price lifted last week, it was notable that a number of ASX-listed lithium stocks were today on the gain.
"On our existing price deck , we estimate Kathleen Valley to achieve operating breakeven on the optimised production plan and be free cash flow positive from the September quarter 2025," Canaccord said this week."Running spot prices , we estimate Kathleen Valley can remain at an operating breakeven level, but given capital requirements and debt obligations, we estimate Liontown may face a liquidity crunch by the December quarter 2025.