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16.5¢ galan lithium limited

General Discussion Banter GLN, page-14922

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merwej

368 Posts.

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26/03/24

14:29

Post #: 73064842
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Originally posted by merwej: ↑

Mondy thanks for providing an analysis so that we can have a discussion. I appreciate the effort. Below I have given another view on the same numbers you had. Assuming that Capex will be US$401m for 20ktpa (this includes the 15% contigency). Hopefully we can save a bit. If Galan is happy to roll over the debt and are able to get new finance it shows that at 5400ktpa production level we are making A%22m profit (in line with you revised figures). They can have a dividend policy of 30% of FCF as dividends (same as PLS). Then the dividend yield would be 4.4%! This is at current low pricing and only 5400ktpa production and 15$ interest on loans.

At 20ktpa the dividend yield increases to 16% at current low lithium prices. 70% of FCF is still maintained in the company for paying of debt etc.

I also have a scenario if Lico2 pricing improves to US18000. The dividend yield at 30% of FCF is then 22.5% .

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My calcs are now out of date due to Hoopz post on allowing for depreciation of capex in tax. that would improve the dividend yield even more!

GLN Price at posting: 37.5¢ Sentiment: Hold Disclosure: Held
5 Upvote

0 Great analysis

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Last 16.5¢		Change -0.005(2.94%)		Mkt cap ! $78.20M

Open	High	Low	Value	Volume
17.0¢	17.5¢	16.5¢	$141.1K	840.0K

Buyers (Bids)

No.	Vol.	Price($)
12	525489	16.5¢

Sellers (Offers)

Price($)	Vol.	No.
17.0¢	297733	5

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No.	Vol.	Price($)
12	525489	0.165
17	1551246	0.160
11	1858265	0.155
13	638123	0.150
2	360000	0.145

Price($)	Vol.	No.
0.170	297733	5
0.175	97400	4
0.180	179433	7
0.185	120000	2
0.190	89577	4

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