The "situation" will only be resolved when the price for lithium chemicals rises to a point where, in the case of GXY, the price of spod rises to where GXY can make a slight profit at MtC and can get interest/partner to progress SDV. I can't see this happening in 2020. Until this happens, a MC of $317mil is probably about right and no amount of head scratching or feelings of amazement is going to change that. Bell Potter, for example, have forcast bottom line (NPAT) losses of 30mil, 37mil and 35mil for FY 20, 21 and 22 respectively. Maquarie have a target price of 35c. I think the "market" would probably like to invest in companies that are making positive NPAT in this period of uncertainty so companies like GXY will get very little support.
P
GXY Price at posting:
76.5¢ Sentiment: Hold Disclosure: Held
