Hidden agendas all along, page-11

Just further to my point about broker bias. This is what Mac Bank is saying about the revenue forecasts that drive their valuation models for ORE and GXY....

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
0	GXY Assumptions		FY16e	FY17e	FY18e	FY19e
1	Exchange Rate	A$/US	0.74	0.73	0.73	0.74
2	Lithium Carbonate (equivalent)	US$/t	7125	8250	7500	7000
3
4	ORE Assumptions		FY16e	FY17e	FY18e	FY19e
5	Exchange Rate	A$/US	0.73	0.68	0.65	0.66
6	Lithium Carbonate	US$/t	6099	8263	8000	7100
7
8	Variance in exchange rate	A$/US	-0.01	-0.05	-0.08	-0.08
9	Variance in LCE price	US$/t	-1026.00	13.00	500.00	100.00

The lower exchange rate will yield a better A$ outcome for ORE and (obviously) higher forecast sales values will improve total revenue. Interesting that the big variance in price in favour of GXY is when ORE is not selling much at all (i.e. FY16). I am surprised that they have put a forecast so low for FY16 when they state in another forecast that the spot price currently for lithium carbonate imported to China is over $8000 US$/t.

Clearly, you can make figures support whatever position you want!!!!