Bron,
Now that you mentioned the silver doughnut, I thought I'd mention another piece of information they have gone to market with re GXY. This paragraph was contained in the recently released report on ORE:
"...On the brine side, we have already seen Albemarle’s (ALB US, US$82.62, Outperform, TP: US$88.00) own La Negra plant be late by over 12 months. Whilst on the spodumene side Galaxy Resources’ (GXY AU, A$0.37, Underperform, TP: A$0.40) plant has still yet to accomplish to most challenging part of its processing circuit, the dense media separator (DMS), to see what overall mica content will be.
But the impacts of these new developments is already being felt by ORE. The pricing guidance for Q4CY16 is for $10k/t FOB, flat alongside Q3CY16’s guidance. In our proprietary customs data we can already see average prices flattening, and though customs data can be changed a few months later when audited, the trend is usually consistent...."
Interesting to note that Mac Bank still rate ORE an "Outperform" at a share price of $3.60, yet they have a DCF valuation on them of $1.62 (see extract from their research paper below). How is that possible???
"ORE AU Outperform Price (at 05:10, 05 Oct 2016 GMT) A$3.60 Valuation A$ 1.62 - DCF (WACC 10.0%) 12-month target A$ 4.30 12-month TSR % +19.4 Volatility Index High GICS sector Materials Market cap A$m 754 30-day avg turnover A$m 7.5 Number shares on issue m 209.5"
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