Before it gets too crowded..., page-40

Exactly.
James Bay may not be the largest deposit but it's one of the easiest to exploit.
Big, fat and surface laying. Just like my wife on the beach.
Given the financial position of Galaxy - it's no stretch at all to see that mine operational within the next few years - perhaps even at the bigger 2x2 plant size.

One thing neither the conservative Canaccord report or the BS Mac report can refute is the profitability of Mt Cattlin. If we discard Mac's erroneous tax bill then we are back to a company that both reports agree is providing $150m+ each year for asset expansion.

It's a very handy figure.
If this was a game of Monopoly - it would be the cost of buying a nice hotel and plonking it down on one of the good streets.

What is the cost of a double-size Mt Cattlin plant for James Bay? approx $190m (approx PLS)
What is the cost of a spodumene processing plant? $187m (approx Jiangsu sale price)
What is the cost of a hydroxide plant? Approx $150m (NMT's proposed plant)

From memory, the old DFS gave SDV a price tag of approx $320m. This will be significantly lower now (Peso 20-30% devaluation, Arg. tax and import duty changes removed, etc).
2 year build - first test plant and then full plant with Mt Cattlin picking up the tab.
If there is finance - it could simply be of the "bridging loan" variety.

We don't quite have Mayfair, Park Avenue etc quite yet - but in 5 year's time the Mt Cattlin piggy bank may have funded SDV, James Bay, a processing plant and a hydroxide plant.
And each one of them can generate the equal of Mt Cattlin in terms of profits.
SDV and James Bay (at double size mine) would be a multiple.

How many hotels could we have on the board by 2022?
By 2025 we could be making those competitors wince every time they pass Go.

imho the barrier to entry for those who follow Galaxy in a few years may indeed be a little steeper.
Look at Albemarle. They just bought GRM to process Greenbushes' supply.
(do I have that right @Thesi ? - btw: sent you an email to your gmail account)
It's not hard to foresee further consolidation of the Chinese processing plants, bringing them back under the control of the various members of the existing cartel.
New hard-rock mines coming online down the track may not be able to count on independent spodumene processors that have not been snapped up by the lithium cartel.
The aim, of course, is to keep firm control of the price.

They can create a barrier to new entrants by blocking access to processing.
Accept the offer for the buy out of your operation or you will need to bring the expertise and capital to mine AND process to come to market. Do Not Pass Go - Do Not Collect stag profits.

ie Why is MIN getting out of Mt Marion now if it is such a great deal and amazing resource?
Wasn't it always going to end badly when Ganfeng could set what they deemed to be a fair price for the product at the mine gate and they have to take it? We discussed this here months ago - that there is always a price for teaming up so early with a 10 ton gorilla that can call the shots.

Galaxy can put back their diversified production and vertical integration model piece by piece over the next few years supported this time by revenue, not debt. SDV is a processor in it's own right and deal directly with the giga-factories. Then move to James Bay + their own processor(s).

They have the mining and processor experience and the 100% ownership of their assets to become a price-setter, while others may need to bow and accept whatever deals are offered.

And that, ladies and gentlemen, is how you play the game of Lithium Monopoly.