ASX Today, page-18096

We are in uncharted waters . Beware of the quacks


Scenario 1: based on USD5,000 sales price this Q2, see AKE ann.
511,000 tonnes x usd4,500 profit / 0.72 x 30 PE ratio = AUD95.8 billion or $48/share

Scenario 2: production costs double and volume increases to 700k
700,000 tonnes x usd4,000 profit / 0.72 x 30 PE ratio = AUD116 billion or $58/share

Scenario 3: sales price stabilise at usd2,500 and production costs double and volume increases to 700k
700,000 tonnes x usd1,500 profit / 0.72 x 30 PE ratio = AUD44 billion or $22/share


Sales price are fluid. Supply deficit to worsen. Takes 7 years to build a mine from discovery. PE Ratios are based on ALB and SQM over a long period (5 years)