$130 million US
Which is around $210 million AUD.The next contracts GXY signs should have a
floor price in order to protect against any drops in concentrate prices. Perhaps to compensate for this the current price in the contract might be cheaper, but at least we lock in a price that keeps us profitable when/if the next downturn occurs.
Sacrificing a small amount of profit now, in the boom time, to protect us during the bust might attract future investors into GXY while all the other miners/producers fall to the wayside.
The mining industry is cyclical, we will revisit this downturn years into the future.Hope for the best & prepare for the worst is probably the attitude GXY should be taking. The busts always follow the booms, it's an economic certainty that cannot be avoided, so it should be planned for!!
An ASX listed company was also smart enough to have a
life of mine take or
pay contract with their customer.
I have to admit 2019 was a rough year & to see some of the long term holders in despair is confronting, but it's understandable under the current Lithium climate. Some LT holders may have lost their way & I get it. I think people have to remember why they invested into the Lithium sector in the first place.
A old Wall Street adage comes to mind....
"Buy when everyone is selling."
View attachment 1952011Many of the GXY board members have bought "on market" shares of GXY over the years.
Not a single GXY board member has sold from at least 2013!https://www.marketindex.com.au/asx/gxyI remember after the GFC how low the SP's were for some of the blue chip stocks on the ASX. After investors discovered the entire banking system was on the verge of collapse who would be crazy enough to buy into all that selling??
Have you seen the SP of some of those companies today??
I think too many investors are concentrating on the short term market & quarterly activities of GXY. I think investors should be zooming out & looking at the Lithium market & the bigger picture.
The whole world will be powered by batteries over the coming decades. GXY mines the critical ingredient to make it happen!!
