We just need to stick to the fundamentals here to form a clear picture where we are right now.
And its very simple.
The facts are that GXY is producing Lithium at cash cost of US$329/dmt
The current price they are getting paid for it is around US$600
Its not rocket science to calculate that the profit margin is around US$270 /dmt
What does this mean?
Again very simple.
It means that even with these depressed prices GXY is still making money.
Because they are producing about 50,000 dmt lithium concentrate each Qtr
Multiply 50,000 with the US$270 margin = US$13.5 Million each Qtr
Multiply this with 4 Qtr's and you have more then US$50 million per annum
They have Cash of around $270 million
They have investments of $32 million in A40
They have the Salar in Argentina
They have another Lithium project in Canada
And a current lousy Mcap of $547 Million, while they are still making US$50 Million/ Year !
This must be the biggest bargain on the ASX and it will not stay this cheap for long in my opinion.
At current price this company is a GIFT.
And a warning to all who still do not realise this read the following:
Ignore all the shorters with their negative one liners, they are here for obvious reasons and have no interest in the company other then downramping so they can get their blood money.
Good luck to all those who are invested in GXY
jojo
GXY Price at posting:
$1.34 Sentiment: Buy Disclosure: Held
