Ann: Trading Halt-GXY.AX, page-351

Anthony states in the LV video that he is expecting 25% increase in spodumene, doesn't he?
Can't remember he was fairly hurtling through it.
That would be a fair bit of "extra revenue".

At that point ($780/t) - we are making about $6240USD per ton of eventual carbonate - from the eventual selling price that the converter can sell.
At max capacity we are making 200kt from Mt Cattlin - and assuming that a processor factory can handle that ( Jiangsu was only 137kt spodumene processing/year - and our current offtake was with 2 processors).

At eventual 200kt per year from Mt Cattlin the processor is producing 25k tons of carbonate. (200/8 for resulting carbonate).
And we are only missing out on the difference between our $6k and the price they get.
25k x $7000 margin - $175m USD - for $13k/t carbonate
25k x $14000 margin - $350m USD - for $20k/t carbonate
The processor no doubt has costs/t too. Anthony mentions these somewhere in the first video - was it 15%?

These production output figures are at least a year down the track.
At the moment we are producing around 80ktpa spodumene so those missing profit margins would be a bit less than half. Next year 75% when we're at 150kt.

At the higher end it looks very attractive but if this is a 3 way merge then haven't we now also created a very complex company structure, possible production bottle-neck, and sharing all profits 3 ways with a much bigger and more diluted company?
It gets way too difficult to work out how the new 3 headed monster company would apportion their various values to their various share-holders.

At best its 6 of one, half dozen of the other given that SDV brings approx twice more profits to the table than the processor would, even at base 25kt rate.

Its certainly a very viable business expansion - but wouldn't we be better off buying one outright after a year of SDV profits than merging and sharing the profits of SDV. Wouldn't we?