Good quarterly, still doesn't take away from my concerns about...

Good quarterly, still doesn't take away from my concerns about management communication.

However, the results are genuinely very good. Cash balance adds up and its good to see the cash burn has ceased with the outflows pretty easily explainable (LPD raising, A40 raising, tax bill (good to see they saved a cool 10mill), production not yet sold).

Management have now very publicly said they are intending to ship 70,000 dmt in the third quarter.

If they achieve this, third quarter is going to look very good, even more so on paper since they have effectively deferred revenue but taken on the production cost.

i.e. some of the revenue will feed almost entirely into cash balance next quarter.


The key to watch out for now is
- what pricing is GXY getting for the 2H of the year.
- what does the hydroxide (but particularly Carbonate) pricing market do (looks level but potentially also some declining)
- positive event risk if GXY bite the bullet on their POSCO high mark SdV expectations and do a deal (this is not factored into SP today because market is not convinced anything is happening)
- ability to squeeze some more out of Mt.Cattlin resource
- Broader lithium market sentiment
- Broader market sentiment
- Lowest common denominators leaving Li spod market


Things look well poised with likely more oscillations than a pogo stick but some potential upside risk.

GXY sans cash and current carried assets is being priced at $220m AUD for SdV, Mt.Cattlin and James Bay

Cash - $250m AUD
A40 - $16m AUD
LPD - $12m AUD
Spod 35,000t @ $600USD margin ($850 AUD) = $30m
Spod 35,000t @ $200 USD margin ($285 AUD) = $10m
TOTAL = $318m liquid assets