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14/07/19

13:43

Post #: 39512716
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Originally posted by Thesi: ↑

SDV isn't fully financed. Look at last year's feasibility study. Total capex is almost A$700m.

The cost for a complete build of Sal De Vida to 25,000 tonnes per annum is US$474 million, including US$31 million for an optional potash production circuit.

Without the potash circuit that's ~A$631 million.

The most expensive part of that build is the ponds ~A$150 million. - The company is working on a process to remove that requirement.

~A$130 million for the lithium carbonate plant (Battery Quality) though this is indicative as the company is considering producing a variety of lithium chemicals depending on customer requirements. Lithium Hydroxide, Lithium Chloride, Lithium Phosphate. - Of which pricing varies also.

GXY are going to have to finance the rest with some sort of external finance.

The company will proceed with or without a partner, financed or not financed.
The project is scalable.

Total capex is almost A$700m. There's a A$400m+ shortfall between that and GXY's cash balance. Free cash flow from Mt C isn't going to cover the difference.

As pointed out above total CAPEX is ~A$631 million.
Using your figures that brings that shortfall down to ~$300 million.
Galaxy have 2 shipments worth ~$20 million booked by middle of this quarter and will likely have a 3rd and possibly a 4th closer to the end.
Each ship closes that $300 million gap.

Not to mention JB. How are they going to fund JB?

For now... I am not interested in James Bay, but I will point out Nemaska.

View attachment 1645507

The company said 100ktpa of LCE within 5 years. That's never going to happen. Not even with all 3 fully operational

I am optimistic that the company can exceed that, but they did say based on their current projects.

Expand

The thing is, we keep forgetting the US$336M of assets already booked to Argentina as per our 2018 annual report.

We DO NOT need to spend the US$474M all over again... we have the funds but a partner would diversify the risk as well as give us more cash upfront.

GXY Price at posting: $1.31 Sentiment: Buy Disclosure: Held
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