"Talison is located at Greenbushes WA so their relative price difference to Mt Catlin & Greenbushes will remain."
Talison are selling spodumene to us for US$330/t. Mt Catlin produces it for $AU280/t (which is US$255/t). We can easily compete on price in the open market if the AUD remains at 90c and should.
The CR is not about repaying debt. If you look at the rights issue, most of the funds are for "working capital" i.e. buying spodumene from Talison commencing next month (1 container per week). It would be much better spent on restarting Mt Catlin which can both supply the plant with spodumene and sell it on the open market for some badly needed revenue. Whatever we don't consume we sell.
The new Talison owners are Tianqi who are now paying $454m develop Nemaska's spodumene mine (see my previous post. I have no doubt whatsoever that the decisions made by our management have been all about looking after Chinese interests rather than shareholders. If the puppet master is still pulling strings then all the existing management should go.
GXY Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
