Funny thing is MQG like Orocobre and it's plans to expand production. Are fairly bullish in their sentiment of new energies however they don't believe Galaxy should construct Sal De Vida in the medium term because they don't think the demand is there.
There has been questions raised as to the quality being produced at Olaroz so for Macquarie to like the idea of any expansion there before the job is done right and their current ramp up is complete raises questions.
Macquarie set a target price of $5 for ORE and have Galaxy at 42c. Which one is closest to the mark?
I am not questioning Ben's valuation of Galaxy. I just don't believe Ben Crowley has enough of an understanding about the lithium phenomenon. However he is entitled to his opinion, though writing the below comment which appears to be a pretty poor attempt at a down ramp that I would expect on Hot Copper rather than in any professional business report.
"We are positive on GXY’s Mt Cattlin but do not believe that medium term demand supports the development of the company’s Sal de Vida brine project"
Hypothetically when Galaxy proceed with James Bay and in conjunction build a processor they will no doubt have an arrangement with a company in the region for supply. Two that my enquiries have found in the region are LG and Panasonic. Forget the lithium companies.. The battery companies also want to be able to secure their stranglehold of the business.
I have a great deal of respect for what Tesla has done for renewables however there are other companies within the United States that will have electric cars going to market. Faraday Future or is it Apple?!? They are going to require just as much if not more than Tesla as the Apple fanboi's and girls join their fold.
I have been told that Paul Matysek of Lithium X even regrets losing Sal De Vida because of the quality of the resource. - True story.
The great thing about the Macquarie report and the news articles that have been generated from it, is that it has caused many to question the lithium stock they are invested in plus acknowledged that not all lithium stocks are equal and may not acheieve anything more than investor tears.
Beyond the Macquarie report there are some major investors in Galaxy that could wipe a report that would make would humiliate Macquarie and their perceptions.
The best way for Galaxy to refute anything that Macquarie has to say is to simply prove them wrong.
Who knows.. Maybe Galaxy is waiting on another report from somewhere else to be presented before Anthony decides the temperature is right stands up and shares with all the patient and impatient investors alike.
The longer they wait the better I feel.
Funny thing is MQG like Orocobre and it's plans to expand...
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