Banter and General Comments, page-5678

Price is falling, end of the world bla..bla..bla

Regardless of what the SP is doing I just want to keep being forward looking and keep a focus on what is important. The battery bottlenecks and what will come of future supply. In particular, what are GXY's customers doing.

I did some searching today and got reminded of this. It is old (April 2018), but a starting point
https://www.geolsoc.org.uk/~/media/shared/documents/Events/Past%20Meeting%20Resources/Lithium/Dave%20Merriman.pdf



So the good news is that even a year ago it appeared that our 3 customers were all in upgrade mode.

What we know about Yahua is:
- They have hardrock feed from China
- Supply from Galaxy
- Signed up feed from Core
- Thanks to https://hotcopper.com.au/threads/ann-march-quarter-2019-results-conference-call.4709956/page-73?post_id=38139231 we know Yahua current production lines are:
- 12k lithium hydroxide
- 6k lithium carbonate
- 2.5k lithium orthoposphate monometallic
- 1k lithium manganate
- New production line (20K hydroxide - battery grade) come online in May19 = delay of shipments as reported

What we know about General Lithium
- current capacity of 22,000 tonnes of LCE per year moving up to 60,000T by end of 2020. The message seems to be that even with current contracts they don't have enough access to spod yet http://www.mining.com/web/chinas-general-lithium-launch-60000-t-spodumene-converter-end-2020/

What we know about Ruifu
- I can't seem to find much (maybe someone knows more) but they are also in expansion.

So in summary, regardless of what the share price is doing our customers are increasing capacity showing the potential need for GXY product going forward. As supply is coming on board conversion is being increased. Also, it seems that most off-take agreements being agreed to all include a floor price. This to me shows that there is an understanding that the converters need the mining companies to remain profitable in order to get the supply they need.

In other words, regardless of what the SP is doing it appears business as usual. Profits to be made, deliveries to be completed.

In terms of turning around the price I think we need elements of this:
- more of the executive team need to start purchasing stock (show confidence in the company otherwise holders won't show confidence in accepting the remuneration report)
- need a good exploration find at Mt C to be reported. If further resource upgrades can be made to show a more confident 5-10 year mine life expansion that will take a lot of pressure off and remove many worst case scenarios from analysts calculations.
- share buyback, but I don't see this happening as money for now needs to focus on efficient use of capital.

Best of luck all, and try to refrain from stressing. Keep asking yourself has the fundamentals changed from your initial buy-in prices?