Perhaps in some way in a combination of assets it might make...

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Thesi

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2622

01/05/19

23:26

Post #: 38363791
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Originally posted by Sharpey ↑

Acid and lime are the big one for inputs, yes. I think lime would be pretty easy to get as well.

Use of the by-products is another. Australia doesn't presently produce and potash and consumes 75ktpa, so guarantee the potash could be sold, especially amongst farmers down near Esperance.

The amorphous silica is trickier. I don't know the economics of how far you would ship it. It is currently planned to use as an additive in concrete slabs to make them stronger and reduce the emissions intensity of producing it. I don't know what the demand for selling that in WA would be, or how expensive it would be to ship it up to Perth, which is where the demand is likely to be.

Assuming those numbers add up, there's still the risk of being dependent on someone else's acid production. The smelters in Sudbury have been there for a long time and haven't been mothballed. Ravensthorpe was, because the numbers didn't add up.

That article outlines that there still isn't a clear case for it, but they might be able to get there with an upgrade to handle cobalt. Okay, but its still up in there air. If it doesn't work, the mine would get mothballed again.

I'm not keen on taking on the risk of having P1 stranded if it is relying on sulphuric acid that might not be there. If the numbers add up AND the mine gets restarted and demonstrates some longevity, it would make sense to look at an investment there, but that won't be for a few years yet.

And maybe it wouldn't be LPD operated. Perhaps GXY would just buy a licence to operate its own facility there? That would make more sense to me....

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Perhaps in some way in a combination of assets it might make each of them more cost effective.

GXY Price at posting: $1.48 Sentiment: Buy Disclosure: Held
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Perhaps in some way in a combination of assets it might make...

Top Stories

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Vulcan appoints investment bank and M&A veteran to board

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Utah authorities sign off on Anson's lithium extraction plans at Green River

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

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