" this is a forum for brainless cheerleading or brainless for ramping only."
Agreed.
Everytime an investor questions a significant problem they're obliterated by nasty remarks or completely condemned for mentioning any pertinent fact like "manganese ore price"
Ask yourself this question, how long will it be before E25 is making a monza from producing battery HPMSM? I'd say 5 years minimum before production is started.
By that time there will be many producers and will the price stay high??
So for the next 5 years E25 will be producing manganese ore to sell to OMH.
At the current Mn ore price E25 will lose upwards of A$20million annually so $100 million in loses over the next 5 years using the current production level.
Once production is boosted then E25 will lose even more.
A company needs to be profitable in all cycles, E25 has proved it can breakeven at the 2nd highest Mn ore price in 10 years.
The highest Mn ore price was US$9.07/dmtu in 2017 and lasted 2 weeks, this year in the period when E25 broke even it was the highest average for over 4 years at US$6.56/dmtu and reached a high of US$8.05/dmtu for 44% grade.
How will E25 perform when the Mn ore price is US$4.60/dmtu ?
Tshipi (JMS) has dropped the Mn ore price to US$3.98/dmtu for Dec shipment and the Chinese say its too high and JMS hit a 12 month low of 17.5c.
Luckily Tshipi's C1 cost is US$1.90/dmtu and still makes a profit.
"Jupiter announced the shipping price of manganese ore to China in December 2022: Mn36.5% South African semi-carbonate block is $3.98/tonne, down by $0.12/tonne;"
Tshipi, which is among the key South African Mn ore suppliers, entered the Chinese market with December prices that were equal to the level voiced by its competitor a week ago. So far, Chinese importers refuse to accept Tshipi’s prices.
I do not see the manganese ore back above US$8/dmtu for a long time and E25 can only break-even at this price.
I've taken the opportunity to exit E25 over the last two days, I did say some months ago I was in for a quick quid. So I'll happily pocket my $80,000+ profit. I'm not complaining its been a good trade.
When investors realise what I've mentioned above. (possibly next qtr report)
I'll then buy back at 60c again. Maybe I'll spend my profits on buying JMS at 17.5c.
E25 Price at posting:
$1.38 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)