I was taking floor price as the sale price which is locked in US...

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Affi11

529 Posts.

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24/12/16

12:26

Post #: 21549317
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Originally posted by Gazzajohn ↑

Not sure Affi11. The way I read the 16 Jul 15 release was that Ganfeng was taking 100% (presumably 200,000 t/y) of plant production of 6%li concentrate. The terms are "at benchmark market price subject to an agreed price floor". My take on this is NMT and MIN agree to a price with Ganfeng based on a benchmark set by current market price. It is no way fixed. Not sure what it is at the moment but I someone posted the other day it was above A$800 and set to climb further through 2017.
Since this initial agreement Ganfeng have agreed (through releases in Jan 16 and June 16) to take an additional 200,000 of 4-6% concentrate that can be generated by the addition of a floatation circuit to the current benefication plant. The price for this 4-6% conc will be at a discount to the 6% market price. At 4%, using proportional maths, this comes out to be two thirds of A$750 or A$500. Not sure if proportional maths works for Li concentrate but its the best I can come up with.
Can't find anything to say the prices have been locked in at 450, not sure what currency you are talking about. Can you give me some direction on this.
Needless to say this is pure conjecture and speculation on my part. It is my interpretation of the AXS releases and I am happy to be corrected. If I am correct then the A34 mil per year revenue may be conservative.

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I was taking floor price as the sale price which is locked in US $. I could be wrong but when benchmark price was 600 NMT preso quoted 17million in revenue which could be for x tons but it's no where quoted so we don't have mechanism to calculate price. I will for next quaterly to be certain. I am loosing patience on the q3 2017 date it requires patience specially if you bought in 40s

NMT Price at posting: 34.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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