1. Costs are coming down, but will at some point stabilise, while it seems reasonable to now assume that AJM's high quality spod has considerable price upside.
2., AJM has considerable value in its ability to expand at exceptionally low cost. Stage 2A for $60 million would add significant value, for example. Shanshan and GF would appear to be focussed on that further volume.
3. Need to deal with debt, probably as part of Stage 2A funding arrangements.
Favre
AJM Price at posting:
8.2¢ Sentiment: Buy Disclosure: Held
