The initial plant is estimated to still employ up to 48 on-going direct employees and 10 contractors and 50 to 75 construction jobs.
1000tpa ... cost of energy? Actual profit?
Magnesium prices hit a decade’s high of over $10,000USD per ton in 2021, according to Bloomberg. The reason for the price increase was due to China’s energy crunch. As the main exporter of magnesium, China produced over 900,000 tons of magnesium in 2019. The minor metal is often used to harden aluminum that will be built into cars, power tools, and laptops — among other products. As the country cracks down on exceedingly high energy costs and pollution with energy control policies, other countries are expecting supply shortages. However, major Chinese producers have returned to 100% (or near 100%) production from September into October, during the fourth quarter of 2021 with the top factory expecting to have 100,000mt/year in capacity for magnesium ingots.
Chart ... unconvincing. Watching for Double Bottom to SMA200 (7.5c to 5.8c) for a perfect Elliot Wave washout (then reversal?).
The LMGO's (4c strike Oct '23) are currently at 4.7c odd ... so a better buy than the heads at 8.8c. Which is an inverted scenario and contrary to intuition. (No premium for time in the options price ... you can effectively own a head share for 8.7c via the options at 4.7c)
The (TA) Bollinger Band is squeezing as a consolidation on the lows so I'll await the next move and let that tell me whether the options are (currently) a better indicator than the heads or vice versa. Will watch.
LMG Price at posting:
8.8¢ Sentiment: None Disclosure: Not Held
