Same outlook as Ana had in her Rockstock interview this weekend. Which makes sense I guess - if you’re CEO of a hard rock company which can produce at something like $400/t (FOB) - which both SGML and PLS can - then the strategy for companies like this will be to expand production and increase their market share.
Sigma (as an example) generates free cash flow - even at $900/t SC6.
The outcome of all of this (IMO), will be that ‘less good’ and higher cost producers will either go bankrupt or into C&M for an extended period. CXO was just the first, but I think SYA should also be in C&M with them. It will also be a shock to hear, but there is a scenario where even LTR ends up in potential C&M (SC6 prices go to ~$850/t or lower - and they have ramp up cost issues - and/or they are unable to secure finance or end up with onerous covenants). In the hypothetical where they lose $150/t, they would burn $45m cash in a year (assuming 300Ktpa, but higher if 400ktpa) or $300/t loss = $90m cash burn per year). if this plays out over 12 months - their ability to refinance the bridging loan is potentially non existent.
LRS General Discussion, page-18186
-
-
- There are more pages in this discussion • 231 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add LRS (ASX) to my watchlist
|
|||||
Last
16.3¢ |
Change
-0.008(4.41%) |
Mkt cap ! $440.9M |
Open | High | Low | Value | Volume |
17.0¢ | 17.0¢ | 15.5¢ | $2.227M | 13.75M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
23 | 678633 | 16.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
16.5¢ | 2290653 | 43 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
23 | 702974 | 0.160 |
55 | 3075686 | 0.155 |
76 | 4090313 | 0.150 |
24 | 1521741 | 0.145 |
36 | 2947848 | 0.140 |
Price($) | Vol. | No. |
---|---|---|
0.165 | 2270881 | 42 |
0.170 | 2935723 | 33 |
0.175 | 1274494 | 20 |
0.180 | 1519548 | 20 |
0.185 | 942313 | 15 |
Last trade - 14.56pm 16/07/2024 (20 minute delay) ? |
Featured News
LRS (ASX) Chart |