There are 2 key factors here that everyone should get their heads around - the APT price post the Fanya auction (Sept 16/17) and, the unsung hero of SEI's low OPEX.
Not easy to get wide ranging views on the Fanya situation but there does seem to be growing opinion that it is much less of a negative than originally thought - with buyers appearing to only be buying short term quantity in the lead up to the auction, after which the supply/demand curve can resume its usual mechanics. We know that supply is low and we know what happens to demand (and price) when this happens.
Re OPEX - CNQ/SEI financial model has always had a low cost price per MTU. With Russell's masterstroke of acquiring the quarry, it will now be even lower again. Combine this higher gross margin with all the other positives to the project such as power, transport, proximity to ports, year round accessability, Crony support and expertise, positive environmentally, and so on, you can bet that an APT price recovery will see this company in the global spotlight.
All that without even mentioning the impact of an increased JORC when they get to include Iron Duke and Petersens Lode.
Well done Russell and welcome Crony !!
SEI Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
