Looks like a quick bang up job on the spreadsheet it has a few gaps otherwise several pages seem to be missing. Still a conservative estimate.
Overall Ta grade could be higher. First spreadsheet used $8000 per tonne for Ta??? Try around $165,000 per tonne (i.e. $75 AUD per pound). Typo? Doesn't effect the main spreadsheet though.
Also doesn't include credits for other commodities such as maybe tin and niobium and maybe felspar which may likely to be produced as a by-product. Also assumes they go for the straight spodumene and tantalum concentrates. GXY also have options to produce Lithium Carbonate (which I believe retails for around $5000 per pound or kilo?? Can someone confirm) and a Tantalum Powder (around $200 per pound). Of course those options require greater Capex.
I also think Tantalum prices will surprise on the upside, provided GXY leave some room to be able to sell on the spot market. With some people in the industry predicting wodgina reaching the end of it's life, and the vast Ta stockpiles built up during WW2 no longer existing, we could see some supply shortages in the market, despite the big new Ta mine overseas. Wodgina supplies 30% of the world market and the stockpile supplied about 20% I believe.
Capital cost could end up being lower. Potential if the capital cost is lower that it could be funded almost entirely by debt as well.
On other matters, I was interested to see in their prospectus that they are going to investigate whether they can provide dolomite and pyrite to BHPs nickel project (for sulphuric acid and neutralising agent). Apparently this is the biggest cost of BHP's plant with requirements for over $2b during it's life. At the moment I believe the plan is to import it which has problems because of recent concerns in Esperance (all over the news) regarding lead/zinc concentrates going through their port and ending up in the drinking supply (imagine the outcry if sulphuric acid came through. lol!). Galaxy's dolomite and pyrite resources are located a few km's from the BHP mine. Could be another good $2b revenue stream there for GXY shareholders. No indication though whether they are pushing it.
This is all without taking into account the blue sky offered by projects such as Ponton, Shoemaker, Connolly etc.. And their JV's
I believe they have too many good projects on their hands. Lol.
GXY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
