What is the projected price of lithium? GXY is currently selling spodumene, an ore of target 6% lithium concentration.
This contract price is currently USD$830/T for 5.5% and up to USD$905 for 6% (extra $15 for every 0.1%) The spodumene is used to make compounds which is where the battery use comes in.
GXY is taking steps toward producing the compounds directly, such as lithium carbonate, which is at last look between USD$15,000-USD$20,000 per Tonne.
The projected price depends on the timeline, but follows the supply/demand story. It is worth looking into supply/demand coming online to see what you might think will happen. For quick reference, there is a bit of a lag with new supply projects right now, if/when they do come online they will have to see where they fit into the demand story.
Note, that the price of Spodumene and Lithium compounds do to some extent fluctuate independently of each other because of where they sit in the manufacturing chain. The price of spodumene depends on the price by converters and the price of lithium carbonate is dependent on battery manufacturers.
What's the profitability of SDV once it is in full production and after obvious dilution of ownership due to joint venture partners taking a slice.
Depends how much product is produced and the price at the time. You can be as conservative or as optimistic as you like for your own sensitivities.
The published target is a 25ktpa lithium carbonate and 95ktpa potash.
Galaxy has a great long term story but will there be a pull back?
Yes.
When? I cannot say and will not be alone in wishing I knew.
Good luck in your investing. I hope you make millions.
