once again we have reached a point where protagonist and antagonist meet and are unlikely to reach a consensus.As a rule, you feed your opinion with data and figures or at least provide plausible assessments. I welcome and respect that. But generalisations and general statements such as ..."It looks good on paper but let's be real, they need to wait until they're actually through ramp up and in production before they start trumpeting how low cost they are. Anyone who has followed a mining company through these stages knows what's written in the DFS and what eventuates can be two quite different things. There an abundance of recent examples of this too...." don't help me much when making investment decisions.To be honest, I can't do much with statements like that.You are subliminally implying a glossing over of operating costs. I therefore invite you to focus on the facts together.The cost structure on an LCE basis according to DFS Phase 2 is as follows:
Galan communicates with great clarity!Now my specific question to you.Which cost assumption do you consider unrealistic or critical?And please don't argue with a "gut feeling" again.Gut feelings, whether positive or negative, have no place in a professional analysis. Critically scrutinising and evaluating figures is much more helpful.
Since I, like many others here in the forum, as a fundamentally orientated investor, am still surprised by the valuation with the funny market cap, I often rack my brains about the reasons for the valuation discrepancies with other developers.
In your statement I find it significant:"..., but it feels a little cringe carrying on about HMW being at a cost base superior to Sigma, Pilbara and Minres...." I judge your perception to be representative of many other non-investors. Surely it cannot be that a "small" brine company operating in Argentina largely outperforms large hard rock producers in terms of cost efficiency!!! Perhaps this perception is actually one of the reasons for the blatant undervaluation?
Time will tell have a nice day Smith71
GLN Price at posting:
53.0¢ Sentiment: Buy Disclosure: Held
(20min delay)