“the volume is considerably larger than GXY... it's probably why PLS has a larger MC....”
Based on the life cycle of a mine there’s spike on discovery of resource, a big retrace when the excitement subsided and low sp during the orphan stage and starts to rise as production ramps up to steady state.
I think the market is stuck between the moon and NYC!!
Look, Gxy has $400m cash and the market is not impressed.
The MC operation extended ramp up has struggled in the last 18 months, plus softening of prices. - causing a negative sentiment
There’s some progress (even considerable) in SDV, pond construction etc not to mention negotiations for a deal that will potentially accelerate the project
Low EV, no debt, the market is not impressed
Shareholders have legit reasons to expect a much higher valuation.
But the market seems to have switched off any excitement toward progress at SDV and transfixed to near term earnings. Gxy is longer valued as a development company but rather a producer. Hence if it does not show a trusted plan of action to achieve stellar results in the near term, the SP will reflect that sentiment.
The market views PLs, AJm and A40 in the same category. They’re no longer an explorer. Investors are no longer impressed with discovery of bigger resource size, high cash balance, or building of the next stages that are 2-4 years away.
It’s time to show one’s tenacity in achieving nameplate, produce at least a 2 year year realistic forecast based on current capacity. It is better to say, Gxy will achieve 280t tonnes in the next 18 months than saying we will produce 50,000 tonnes LCE/hydroxide in 5 years. Gxy has to wean itself from a sick baby to a healthy toddler.
The above is just to enable the SP to move short term. Of course in the long term, if one’s timeframe is 5 years or more, whether the SP goes down further to $1 or $1.50 is irrelevant. The company will eventually have its cream rise to the top assuming the ev revolution continues.
Ok I may have said too much non sense. In fact the SP can easily go back to $4 again for unexpected reasons, or down to $1.50, it’s done it before, and so have the other lithium players.
On another note, looking at that video of JB project, I’m thinking Gxy might use the low Capex pow Opex loh-Max tech that will net thousands of profits better than conventional methods. I’m not allowed to say who owns the loh-max.
