Nice to hear from the horses mouth for a change. Most of this has probably already been said but I thought I would take a few notes anyway. Here they are
Synagies with POSCO will be quite small due to GXY being ahead of POSCO with studies etc. synagies will come from infrastructure such as electricity. POSCO has raised this more so than GXY. AT pretty much said that we will go mainstream tech and they will keep studying their new tech and will require different approvals. Interesting to see that they are stilling looking at JV on SDV.
They mentioned the tax implications from the sales, but no mention of the tax loss offset, actually implications areArgentinean rather than Aussie so no tax offset other than the $25 million accounting loss shown in the report, I thought this was overly large, but it must include everything they can think of to right off.
MtCattlin: increase in efficiencies, 220-240Mt per year. Improved quality expected, means improved pricing, especially important since we are paying for shipping. Q2, concentrating on quality more than anything else.
Cash from POSCO: AT strong financial position, nothing given away
JB: inbound interest. Still testing, integrated solution 40000 t converter. JB timeline, lots of interest, Q2. feasibility work still going on, more happening next year.
UBS guy: Is the pricing market better now? AT, Supply and demand, demand getting stronger, supply looks more anticipated rather than actual, China supply not relevant to battery market. Sentiment again more perceived rather than real. Pricing not affected by supply but it is by sentiment. Positive but not confident.
Do we need to sell down SDV? Still looking at all options as far as % of JV. Modelling options. No garuantee when this will be sorted, no confidence it will be done by the end of year.
Tolling: WTF is going on, don’t we all want to know this one. No tolling due to capacity expansions of the buyers. Talk is now on how GXY can participate in the downstream, trying to get a partnership with the converter. (Maybe they are hoping the supply is short and we can garuantee supply if we can get into a partnership)
Special Dividends: “Management have received options what about the share holders” bloody good question, I get the feeling that AT took this on board and will come up with something to give something back to shareholders.
As always AT is one cool cat, he never over plays his hand, frustrating for us, yes. But that same cool hand is negotiating our deals and he always wins the deal (except for tolling, but I think he is letting this round go in hope of a bigger slice later) He knows the supply and demand is in our favour but sentiment is poor, he will not deal on sentiment but Actual figures.
So my take
So MtCattlin will be optimised this year
Cashed up by end of year
SDV deal done early next year and major work will begin
JB studies finalised 2019, deals done, mine and converter started 2020
AT not letting BS get in the way of his plan
Something will come back to SHare holders in some way 2019 (capital management)
He still seems to enjoy the biz and not in as much of a hurry as many here.
Also
I’ll take option three, the shorts are third party fossil fuel dinosaurs.
50:50on whether we have a beautiful run in the short term
100% it will continue to be an insto play thing and frustrate us all.
Finially
Massively frustrating and hard to comprehend but less so then last year @ $1.70.And that took us to $4.50 in a couple of months.
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