I'd say our 5% sale has shown the prices the Mali Government will have to pay, US$65 for 5% (which is effectively 4%), albeit they'll just use tax concessions not cash to purchase the extra 10%. Simon said at last AGM the Govt is cash strapped and would quite likely defer purchasing the 10% because they need the cash flow from the taxes etc we'd otherwise pay.
On another subject the below chart is very interesting. At current prices half the Australian production is uneconomic. This obviously cannot go on indefinitely. Luckily we'll be in the bottom quartile, maybe not as low cost as Greenbushes with their high grades, certainly cheaper than Wodgina.
The likes of Kathleen Valley, Mt Catlin & Finniss are in big trouble at these prices. Admittedly LTR will only produce for less than a half year while it ramps up but will still be higher cost than Pilgangoora. The prices are also FOB so add shipping.
LLL Price at posting:
50.5¢ Sentiment: Buy Disclosure: Held
(20min delay)