INN sat down with Ken Brinsden of Pilbara Minerals to talk about the current state of the market and the future for his company.
It’s been a tough year for lithium juniors and producers around the world, and in particular for Australian miners.
With prices declining and investors waiting on the sidelines, lithium companies from the land down under have taken different steps to ensure they can remain healthy and prepared for the unprecedented demand expected in the coming years.
At this year’s Cathodes event, part of Benchmark Minerals Week, the Investing News Network sat down with Ken Brinsden, managing director and CEO of Pilbara Minerals (ASX:PLS,OTC Pink:PILBF), to talk about the current state of the market and the future of the company.
Brinsden shared his thoughts on the extent to which China’s domestic conditions have impacted the lithium space.
“China is a key driver because they are the main consumers of lithium raw materials,” he explained. “The change in the (electric vehicle) subsidy regime in China, combined with a relative weakness in the China economy, has clearly impacted lithium raw material demand and in turn it has impacted pricing in a way we hadn’t expected.”
Speaking about what lessons the company has learned during this down season, Brinsden said now more than before companies have to be careful to establish the right customer base.
“That’s challenging, but I think it is something Pilbara Minerals has worked very hard on, having also achieved some good results,” he added.
Looking ahead, Brinsden is confident Pilbara is well positioned to survive this down season and is prepared for what is ahead for the lithium sector.
“I think we are as well placed as we can be — we’ve moderated production to ensure that we are not getting ahead of these key customers’ demands, and we think that is a completely rational response to the current market situation.”
Watch the video above for more of Brinsden’s thoughts on lithium, Pilbara and what he expects for 2020. You can also click here for more video interviews from Benchmark Minerals Week.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.