Could be right. Depends on the price of lithium compounds Vs the price of spodumene concentrate.
The last phone conference made mention of not requiring CR as an option for funding SDV so the flagship project looks good from the financing side.
The diversity this brings is protective of the company's profitability as completion would see production of both lithium carbonate as well as spodumene concentrate, which both have slightly different market drivers.
The lower cost of producing compounds directly from brine would protect GXY more than a hard rock lithium coy. They may even consider pulling back production from Mt Cattlin after SDV is operational just to keep the demand up except that the supply story from some commentators seems to indicate that it will still continue to be a profitable operation.
Which means that JB will probably be completed sometime as well.
For an MC of $1.21B it's not bad value to me.
GXY Price at posting:
$2.98 Sentiment: Buy Disclosure: Held
