I guess whether GLENCORE deal will proceed will depend on the commercial factors, that is whether both party can benefit financiallly.
The current spot price for LCE is 90,000 RMB = 12,000 USD, and this price has been stabled in the last 2 months. So after applying 70% LiCL factor, LICL sold price should be 12,000 * 70% = 8,400 USD. After 4,000 OPEX, GLN has a profit before interest and tax 4,400 *5kt = 22m USD.
If CAPX loan is 120m USD@10% interest rate, GLN can still have a little profilt of 10m USD.
For GLENCORE, assuming covert and transport cost is 1,000 - 2,000, then its all-in-cost is very close to the 11,000, leaving profit 1,000 per ton, so 5m USD in total. Basically it means there is very tiny profit for GLENCORE.
Therefore I am guessing GLENCORE may not have incentive to proceed the deal.
I guess whether GLENCORE deal will proceed will depend on the...
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Last
12.5¢ |
Change
-0.025(16.7%) |
Mkt cap ! $61.71M | |||
| Open | High | Low | Value | Volume |
| 12.5¢ | 12.5¢ | 11.5¢ | $810.3K | 6.630M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 8 | 618141 | 12.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 12.5¢ | 38235 | 2 |
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| GLN (ASX) Chart |