Just further to my point about broker bias. This is what Mac Bank is saying about the revenue forecasts that drive their valuation models for ORE and GXY....
Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 0 GXY Assumptions FY16e FY17e FY18e FY19e 1 Exchange Rate A$/US 0.74 0.73 0.73 0.74 2 Lithium Carbonate (equivalent) US$/t 7125 8250 7500 7000 3 4 ORE Assumptions FY16e FY17e FY18e FY19e 5 Exchange Rate A$/US 0.73 0.68 0.65 0.66 6 Lithium Carbonate US$/t 6099 8263 8000 7100 7 8 Variance in exchange rate A$/US -0.01 -0.05 -0.08 -0.08 9 Variance in LCE price US$/t -1026.00 13.00 500.00 100.00
The lower exchange rate will yield a better A$ outcome for ORE and (obviously) higher forecast sales values will improve total revenue. Interesting that the big variance in price in favour of GXY is when ORE is not selling much at all (i.e. FY16). I am surprised that they have put a forecast so low for FY16 when they state in another forecast that the spot price currently for lithium carbonate imported to China is over $8000 US$/t.
Clearly, you can make figures support whatever position you want!!!!
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Hidden agendas all along, page-11
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