General Discussion Banter GLN, page-14921

First 14921 Last

Share
Profile

Follow
merwej

368 Posts.

71

26/03/24

14:26

Post #: 73064786
Share

Originally posted by HOOPZ: ↑

Aside from not deducting interest before calculating tax, you have still neglected to include the depreciation benefits which are particularly favourable in Argentina. Argentina provides accelerated depreciation rates for mining activity allowing plant (which includes wells and ponds) and equipment to be depreciated within 3 years.
In the model below I have used a 20% depreciation rate. The other thing I have done is use the 79% chloride payability that is now being used in the Phase 2 DFS. Obviously, they have had more discussions (between release of the Phase 1 and Phase 2 DFS) with respect to payability which has increased their confidence of achieving a higher rate. So using your spot price I have a FCF of over US$25m which would see the loan paid off in 3.46 years. Using US$19.5k LCE and a slightly less aggressive interest rate (of 12%) would see the loan paid off in a little over 2 years.

Lastly, a temporary spike in spot price as the pricing pendulum swings back in the other direction could see the loan paid off in less than a year (e.g. US$40k LCE - which is certainly possible, given the rate of EV adoption and how immature the industry is). I certainly look forward to seeing your spot price valuations (which you have taken to like a duck to water) when we are on the other side of the cycle.

Expand

That is great news, makes it even more profitable! Here is hoping we get news about the finance soon.

GLN Price at posting: 37.5¢ Sentiment: Hold Disclosure: Held
9 Upvote

0 Great analysis

Reply

Top Stories

PAM

PAM secures high-grade Chilean copper play in strong territory

IVZ

Invictus banks US$5M from Zimbabwean investment fund in support of Cabora Bassa

BOE

$550 million Jabiluka uranium offer comes unstuck as Government rules lease won't be renewed

BIO

Biome unveils three year revenue target up to $85M – but are 3Y targets enough to excite?

AZL

Brine and shine: Arizona Lithium wins early stage eco approval to commence wellpad #2 at Prairie

There are more pages in this discussion • 668 more messages in this thread...

First 14921 Last

Add GLN (ASX) to my watchlist

(20min delay)
Last 14.5¢		Change 0.000(0.00%)		Mkt cap ! $70.89M

Open	High	Low	Value	Volume
14.5¢	15.0¢	14.5¢	$27.01K	186.0K

Buyers (Bids)

No.	Vol.	Price($)
8	290461	14.5¢

Sellers (Offers)

Price($)	Vol.	No.
15.0¢	641147	35

View Market Depth

No.	Vol.	Price($)
8	290597	0.145
26	604434	0.140
11	544644	0.135
14	560000	0.130
10	756234	0.125

Price($)	Vol.	No.
0.150	641147	35
0.155	175773	6
0.160	207425	11
0.165	232500	8
0.170	104500	2

Last trade - 14.21pm 29/07/2024 (20 minute delay)

GLN (ASX) Chart

General Discussion Banter GLN, page-14921

PAM secures high-grade Chilean copper play in strong territory

Invictus banks US$5M from Zimbabwean investment fund in support of Cabora Bassa

$550 million Jabiluka uranium offer comes unstuck as Government rules lease won't be renewed

Biome unveils three year revenue target up to $85M – but are 3Y targets enough to excite?

Brine and shine: Arizona Lithium wins early stage eco approval to commence wellpad #2 at Prairie

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

General Discussion Banter GLN, page-14921

Top Stories

PAM secures high-grade Chilean copper play in strong territory

Invictus banks US$5M from Zimbabwean investment fund in support of Cabora Bassa

$550 million Jabiluka uranium offer comes unstuck as Government rules lease won't be renewed

Biome unveils three year revenue target up to $85M – but are 3Y targets enough to excite?

Brine and shine: Arizona Lithium wins early stage eco approval to commence wellpad #2 at Prairie

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News