Yep I reckon they’ll want to extend the life of Mt Cat, and thereby leverage the plant and infrastructure and team they have in place there!
That was the strategy wrt A40, if you recall they mentioned that investment was about securing/extending spodumene supply.
Who knows where that specific plan will end up (I suspect it’s not over yet), but yes some more drilling around the current mine area may indeed delineate some more resources and reserves for us. I haven’t looked at the Mt Cat geo info for ages but iirc there was potential for extension and nearby orebodies that may prove up. It would be great if we can keep the Mt Cat plant going for another 7-10 years, regardless of whether the ore comes from extensions of our current pits or from nearby.
It’s not cheap to simply knock up and tune in a plant like that, so let’s make use of it I say!
I reckon GXY’s plans are somewhat aligned, considering the mentioned target of 100ktpa LCE.
That would be a lovely outcome, and as long as we continue to make progress towards that over the coming years, the market should gradually begin to factor that into what it thinks the company is worth and hence what the sp should be.
Amazing how quick things can change.
Look at the 6-month chart and it appears you’ve typed in the wrong code!
So much for asb’s theory of the share price following the “price of lithium”. What nonsense.
A whiff of an upcoming resurgence of the sector and bang we put on 100% plus some.
At 86 cents the call was “averaging down is foolish”. What nonsense.
At this rate we’ll be at $2 before we know it and all kicking ourselves for not buying even more for under a buck.
Where’s colinchi with his doomsday calls?
We know what happens when sentiment runs hot, as it did in 2017.
For us, nothing has deteriorated fundamentally, in fact we are advancing SDV (again asb told us “money spent on SDV is a waste” ), and this only serves to further de-risk the potential for significant company growth in the future - so, what happens when sentiment runs hot again? Well, imo why the heck would we not surpass the $4.50 mark again? We are closer to development, have more cash, are more de-risked, and are therefore more valuable than before.... and with big battery/auto increasingly sniffing around to secure further upstream elements of the supply chain, there is added potential for serious interest in deals with serious companies as time goes on.
My guess is that the next big surge we see will happen around 2021/22 as the reality of EVs hits home for the masses and effectively all manufacturers are selling them. At this point, CATL, LGChem, SKI etc will be scrambling for feedstock and fighting over locking up supply from an insufficient pool.
Prices will reflect this and imo a sp of $5+ at this stage is not hard to fathom by any means.
Then bring on initial production at SDV and further planning for JB, and things will look very different!
It makes sense to me that someone will want to lock in our white gold from SDV and our current plans for SDV will be expedited to build out a BG plant “in a hurry”. It would not surprise me at all to have someone push that button in 2022, and “arrange” for a 50ktpa SDV operation ASAP.
That’ll feed about 1 million EVs per year, and having a supply that is consistent is of clear benefit and value to the battery makers - far better than buying 5 and 10ktpa lots from Tom Dick and Harry and having to manage the effects of variations in impurities etc.
Anyway, my crystal ball just ran out of power, perhaps I need to run it or something that Elon might announce next week!
Imo
Not advice!
DYOR
Gltalth!
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