Anthony Tse sure knows how to make a girl light headed.
What an achievement!
He did it! And teased us all in the announcement the other day.
What this means to produce 1 tonne it is costing converters USD$10,000 from spodumene.
By comparison Sal De Vida is expected to cost the following per tonne.
View attachment 377645
6th point on this announcement.
http://www.asx.com.au/asxpdf/20160822/pdf/439hfb9zq8bpwp.pdf
What this means is that Galaxy will further reduce costs and expand margins they are capable of.
It is no wonder that Tianqi, Albemarle and Ganfeng are doubling down to acquire or JV with as many brine assets as possible. Some of which have a lot further to go than Sal De Vida before they will realise production.
I have just been working out based on these new figures how many tonnes Galaxy will need to produce in order to construct Sal De Vida at full capacity.
The above announcement indicates USD$376 million or the equivalent to just 415,000 tonnes.
If we remove the planned 160,000 for 2017 tonnes from the equation we are left with a further 255,000 required.
In
@airconditioner interview with Anthony Tse, Anthony indicated he would prefer to under promise and over deliver so we know that it is likely Galaxy will exceed 160,000 tonnes for this year.
The other thing to consider is that of the USD$376 million required to build Sal De Vida the company has tax losses totalling a bit over $200 million which reduces the taxation payments required.
Off the top of my head Anthony mentioned a plan for 70% equity to 30% debt varying no doubt based on pricing at Mt Cattlin and also its performance.
From memory Anthony mentioned CCB and some Argentinian banks for funding. He probably needed to check a few boxes before we could proceed.
From the above I now feel comfortable to say that it is likely the company can and will go it alone at Sal De Vida however just like Mt Cattlin Anthony will be pushing for prepaid offtake agreements with long term partners.
OK, I'm dizzy.. I need to go back and lay down.
