At 1.10 market value is 298m US.
At june, 179m usd in hand. + investments.
The current china spod price has no relevance. The company contract price was arranged in june. Cost per tonne 340 us.
This cost has come down due to falling aud.
Lets go with 650/t from 750/t h1 =300 profit.
180-210kt is targeted. 45kt shipped h1.
So, 150kt × 300= 45m usd profit.
45+179= 224m us cash for 2019. MC 298m.
298-224= 74m usd. For MtC, JB and SDV.
The profit for one year 2019 is 70-80% of the MC. The shipments go out as expected the above stands.
The spend on SDV and JB is capex.
Anyone know of a company worth 74m usd with 60m usd profit? At 550 the peers cannot survive. Galaxy is the only one can operate at 550 and $200/t profit. Make your own decisions. As long as the management doesn't do something stupid and operate over next 12 months. The earnings will be more than MC.
JB SDV on hold will not change the equation, MtC is already worth more than MC. The mine is at least 100m to build. Yop alone was 30m.
GXY Price at posting:
$1.16 Sentiment: None Disclosure: Held
