There have been other general reports comparing the costs of brine vs hard rock li-carbonate which said that hard rock costs were about $4500/ton while brine was about $2000/ton. I tend to favour these estimates.
My honest belief is that GXY's margin will be about $2000/ton or $34 mil profit p/a . (Keep in mind that at present Mt Catlin is producing at a loss.)
Also, a p/e of 10 for an emerging producer is optimistic. Emerging gold miners, for example, at this stage of development normally have a forward p/e significantly less than 10.
So my take on GXY is $34 mil x 8 forward p/e is $272 mil or just about where it is now. Improved li-carbonate grade could increase forward profit by about $17 mil p/a but we will have to wait for factory results for confirmation.
On the down side, however, a chemical hitch with the plant could see a sp drop which would make the company vulnerable to a cheap buy-out.
Cheers Moorookamick
GXY Price at posting:
29.0¢ Sentiment: Hold Disclosure: Not Held