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$5.28 galaxy resources limited

Righto mate, well let's see how it plays out there is a lot...

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toby22

354 Posts.

26

07/05/19

13:17

Post #: 38446475
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Originally posted by Darkstone: ↑

You really have no idea of what you speak. Each 0.1% grade below 6% is worth only about $10 per tonne reduction. The grade is merely a yard stick; of more importance is the impurity levels (like iron and mica) which in GXY's case are very low. Their price has not fallen as much as the 6% output from other mines which is a clear indication of the fact that in spite of lower Li content (by 0.4 to 0.2 %) there product is ideally suited to battery chemistry. The grade is a balance between recovery levels and grade - you can get a higher grade by reducing your recovery level. The one time GXY dropped to 5.6% was at the end of the previous pit when they were churning through a lot of rock because the pit was running down.

Lastly they have 5 years worth of 100% output already pre-sold. What the company is trying to do at the moment - and the basis for the confusion on the grade issue - is that they are introducing/have introduced new circuits and tuning processes to increase recoveries to 65-70% while maintaining 5.8 to 6.0 % grade only because it is worth an extra $10-20/tonne AND the per unit cost will drop further by approximately 10-20% representing a combined $50-70 additional profit per tonne an effectively extend the mine life by another 20% (assuming constant output levels).

In other words they are currently reducing their already competitive cost profile and increasing their already above average profit margins with the changes, all without increasing their $0 debt and thus not increasing financing costs which currently sit at $0 - unlike just about everyone else of the new miners.

Lastly, the chemistry profile of the mine is ideally suited for the LPD process to be applied to the tailings to recover over 90% of the Li therein (already tested and proved) when the plants are ready, straight to high purity battery grade LIOH/LI2CO3 at substantial profit (thousands $ per tonne), so even the waste is a potential profit source for MtC.

All of the above is in the public announcements from the company, so there is absolutely no excuse for you spreading clearly dishonest, or at the least, grossly ignorant comments on this board.

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Righto mate, well let's see how it plays out there is a lot higher grades coming online so I don't care much for yesterdays price its the future price I care about. 100% pre-sold is a good thing (but they are also very small production wise and developed resource wise) they also sold this is lithium boom with little competition compared to what we will see in the future. Again GXY with 400 mil in the bank they are in a strong position to act there are a number of options for them here to take advance of in a low cycle.

You're taking this personally I feel.

LPD holds great potential for GXY agreed, however, I will wait until everything is scaled.

Nothing in my comments are about spreading fake rumours. I suggest you release I am looking at the future market for lithium.

Chill out and cheer up mate.

GXY Price at posting: $1.54 Sentiment: Sell Disclosure: Not Held
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