trying to value gxy, page-4

The low AUD should benefit GXY by reducing costs. It means:

- Mt Catlin can now produce spodumene considerably cheaper than Talison's (ie Mt Catlin viable and competitive)

- The Li2Co3 when sold in USD will convert to more AUDs

- Admin costs are lower (in USD)

- All the assets now have a higher AUD value


Based on Nemaska's Whabouchi (James Bay) project, Mt Catlin and the Jiangsu Plant alone are worth over $500m.

This is because Tianqi is paying $454m to build the same plant and mining facility to process Nemaska's spodumene.

If Tianqi bought Mt Catlin and Jiangsu they would have everything (same) and would not have to wait 2 years for production to commence.

James Bay and Sal de Vide are on top of the $500m.

Sal de Vide has an NPV of US$380m. GXY's James Bay reserves are equivalent to Nemaska's Whabouchi (James Bay) reserves.

GXY's 2012 annual report has the assets valued at $353m. (about half the replacement cost)

http://www.nemaskalithium.com/en/

http://resourceinvestingnews.com/57322-lithium-producers-on-the-horizon-part-2.html