So - I think that settles that old DSO chestnut and sticks a fork in it.
Thanks for posting that
@Kevyx
ML's analysis is way off-target but the substance is the stubbed-out butt of a very crappy chapter in Lithium.
I think I may have posted once or twice about how it never made any sense
as far as logistics, costs, quality or actual processing capacity went.
Some carrots were involved, but not harmed in the analogies I presented.
I said the same to the PLS supporters who thought this was a doozy of a shortcut too.
Remember Ozblue - and his Lithium GXY + PLS Shandy Theory?
Never panned out of course , but was the ramp-de-jour for ages.
All those ridiculous numbers that were put up? How it would pay exactly the same, be the same quality etc..
My back-of-the-envelope DSO numbers were then later backed up later by Canaccord.
After having our share price smashed for it, we discovered the DSO shipped product was sitting in a pile in China unable to be processed.
Now the clients don’t want anything to do with the whole thing.
Probably want their money back too.
An embarrassment for MIN and their clients.
MIN may now be forced to take a good hard look at Mt Marion’s quality now that the Wodgina experiment has failed.
It should probably close down and upgrade the mica circuits to satisfy the Esperance port authorities
and lower their transport costs to make a better fist of it up there.
DSO was always a greedy and opportunistic thought bubble that played well for their share price
but somebody now has to pay for that mistake.
We already have.
This will make the Chinese cautious about quality and new entrants.
They were duped and dudded by a major Oz company
and that won’t be forgotten.
Deutsche Bank too, were either complicit or abysmally ignorant in that DSO-inspired mid year sell down
as the shorters did the Over Supply War Dance on our asses down to $1.50.
During that time, ML, was the one waving the flag the highest for DSO and for MIN and for PLS DSO
in yet another attempt to down-ramp Galaxy
(which unfortunately back-fired and also hit PLS square on).
Now he turns it into some spin for AVZ?
Does the Saudi Arabia of Spin never take a holiday?
Credibility? Or does the market have the memory of a goldfish?
Seems the tried and true old school methods are still the best
and the most direct way to make a dollar in this business.
I’m disappointed that the market has seemed to misunderstood what is going on with the last GXY announcement.
It was a bit complex with a lot of moving parts but the main points should sink in very soon - that we have Galaxy-branded carbonate and hydroxide hitting the market next year direct from our new LT contract.
Between circuit upgrades, costs lowering, recovery improvement into the 70% range and
the doubling of profit margin of the upgraded shipments -
well its going to take quite some time before another mine catches us now, regardless of tonnage they’re talking about,
simply because we’re starting to “sweat” that profit margin a lot more as the company starts hitting its stride.
This is the result of a whole bunch of things happening. Mine performance and AT’s deal-making are both in evidence.
If all is fair in love and stock valuation ( it isn’t..not yet anyway….) - then 2018 should have yet another early Quarterly "Event" coming up
where the stock just has to quickly get from Point A to a much bigger Point B in a massive hurry.
The same thing that happened when the market could no longer ignore the money coming through the gates in Q3.
And the good thing about it is - (aside from what it should do to our sp)
If Galaxy has sowed the deals with the right players in China then they are effectively booked out by us.
New players can’t copy our homework and use the same strategy or processors to achieve the same thing.
New processors will need to be built.
If 2017 seems a bit thin on sp growth
then we can still look back at a very solid year of goal-kicking that should set us up for a much better one ahead
we’ve done the consolidation of new highs, put the mine into top gear, killed the debt, proved the mining skills and product quality and ability to recover from natural disasters
surviving getting smashed again by manipulation,
achieved a Top 5 position as LCE producer before anybody else is off and running.
If I’m over zealous and long-winded about the prospects…
its because I see the right things keep happening.
I’m not as impatient as many here.
I don’t expect it to be easy or that the market will agree with me all the time.
I have an investment window of at least a few years and all I need is a few more bags in that time and I'm off all your screens for ever.
Well said
@Thesi.
The carbonate/hydroxide tolling strategy makes it more and more likely that
the Little Red Hen can do it all by herself just fine.
It just got that much easier to see how Galaxy can afford its own capex
at both plants. A little pre-payment for offtake and Mt Cattlin looks set to provide the rest.
I do wish that management could spend a bit more time in our shoes (shares) though
and consider how ridiculous it is that we are sometimes left languishing and under pressure
as they know these huge deals are being closed.
And to be more ready and willing to clear up any misinformation that washes around cleanly and quickly.
I would like to see just a bit more effort in progress reports and communication,
mainly because I’ve grown pretty fond of many of the posters here and I’d like to see them
survive with their share holdings intact for the big gains that are coming over the next couple of years
as it all comes together.
What happens now?
Have a great weekend.
That’s what.
Cheers
AC
