He gives a profit margin during his presentation of $400 with a price with a "7 in front of it".
I'm inferring that costs are therefore $300 - though it may well be $399!
Earlier - in April he had given costs at $260/t in an article (I can try to find the link if you're interested) - so the lower figure is more in keeping with previous estimates. There has also been recent mention in announcements of costs coming down.
It may well be a little while before steady state operation has them settling down so that we can run accurate figures but, for now, the scale of the profits per ton are so impressive that they make little difference to how high this should re-rate.
I honestly feel that giving back to share holders a small dividend would make little difference now to the speed with which we can develop our assets on this kind of cash-flow.
Even 1c/share would be a nice reward for our patience.
Don't forget - we should get 50% of this 120kt contract up front too so the company should literally be rolling in it.
GXY Price at posting:
51.5¢ Sentiment: Buy Disclosure: Held
