Again, it all comes down to profitability and future cashflow. Even at technical grade, galaxy can sell at around 6500 a ton with cost supposingly around 4500, based on most recent research report. This translates to 2k gross margin per ton. If 17000 output is achieved, annual inflow is at least 34million. If they can sell higher because of the higher grade achievedor produce at lower cost from the use of talison spodumene(remember 4500 is assuming mt.cattlin still producing), we could be seeing a whopping 50m gross gross profit each year. No bank will be stupid enough to kill the goose early as long as they can smell the golden egg.
I know there are a lot of ifs, but none is too hard if management can keep their focus.
Now personally i think the fengli convertible is a problem, because fengli itself is in stress and as i have stated before, i believe they've sold their equity interest already. There probably is no reason for them to want to extend the bonds. But there is still time and something definitely can be done.
GXY Price at posting:
9.8¢ Sentiment: None Disclosure: Held
