Yep I’m loving their big brassy balls! MC is a relatively small hard rock resource. Others might know more than me, but my understanding is:
1. No one is certain about much these days whether it be the weather, politics or if brine tech will deliver on all its promises. Best to have plays in a more politically stable country than Argentina and to work in the direction of shoring up our current income stream. Realistically, profits from SDV are probably at least 1-2 years away, depending on the outcomes of things we don’t know. A40 is a brilliant play using debt facility and IMO perfectly takes advantage of current market.
2. Get the more developed assets while the unknowns are relatively unknown (can’t help but think of Dick Cheney - the prick, is he dead yet? Hopefully will be following the first Koch soon...their names say it all). The capex on SDV is relatively huge (from last reported figures - yes we might be able to go modular but this is still unknown as far as I know) so the potential to use this shite market to our advantage has A40 written all over it.
3. Mentioned in last point and many times before but it is very important IMO. Get more developed assets cheap. The cost of developing SDV has nothing much to do with the price of LCE. Potentially taking over a distressed asset has everything to do with the price of LCE. The depressed pricing is our weakness but in the scenario that presents itself we are able to take absolute advantage of that weakness and use it as a strength to possibly TO an asset that would cost much more to start from scratch
GXY Price at posting:
$1.17 Sentiment: Buy Disclosure: Held
