galaxy, the bonanza no one cares about., page-18

Thank you salty for the post.

There have been other general reports comparing the costs of brine vs
hard rock li-carbonate which said that hard rock costs were about
$4500/ton while brine was about $2000/ton. I tend to favour these
estimates.

My honest belief is that GXY's margin will be about $2000/ton
or $34 mil profit p/a . (Keep in mind that at present Mt Catlin
is producing at a loss.)

Also, a p/e of 10 for an emerging producer is optimistic. Emerging gold miners, for example, at this stage of development normally have a forward p/e
significantly less than 10.

So my take on GXY is $34 mil x 8 forward p/e is $272 mil or just about where it is now. Improved li-carbonate grade could increase forward profit by about
$17 mil p/a but we will have to wait for factory results for confirmation.

On the down side, however, a chemical hitch with the plant could see a sp
drop which would make the company vulnerable to a cheap buy-out.

Cheers
Moorookamick