Holy Moly
Missed the market today catching up with old friends.
Votes are now in I guess.
107m cast to say that Mac bank is full of sheet and the big fund analysts are doing the numbers and liking what they see here in the newest member of the ASX200.
@Minegames and
@Dancing
take another read of your announcements.
Find me who set the September shipment date.
Found it yet?
It was GMM. 19th July.
Notice anything else that happened post-merge?
A bunch of GMM directors and managers lost their jobs.
Wonder why?
Of course it's disappointing but the July shipment date was traded off for increased mine output.
The coarse-processed product is already stacked up on the pad and Canaccord have already said, after their recent site visit, that the delay now simply pushes the shipments into 2017 without massively impacting the forward mine output and 2017 shipping estimates. Canaccord still estimate 200kt for next year with the delay.
Why? Because the new plant will be running at higher throughput. Follow the logic?
The September date was enthusiastic but GMM's best-case scenario slipped into a worst case when the immediate period following that announcement dumped an annual rain-fall load down in the next weeks.
Ask our local farmer how much work he got done this winter.
I've heard a story that access to mine for construction work wasn't possible for 8 weeks.
Now let's see if NMT have a case of the GMMs and that a teeny delay there
and a GXY in conservative target mode with Greenbushes contractors actually wins the race.
Won't be much in it. Processed ore only needs a whizz through the new fine circuit and its done.
Remember NMT are basically by-standers. They're barely involved as a distant 14% equity partner.
Perhaps its a little jig-a-long to see if it can blow a few cobwebs out of that sp cash-register?
Entirely different quality of operations.
Mt Marion has a lot of 4% grade and some 6% grade. High iron content.
Their 4% grade needs 50% more ore shipped for the resulting carbonate product.
Ganfeng will grit their teeth and take it but we'll see if there won't be a few upgrades needed for that plant over time to address the high impurities. Did you see that MIN cut loose immediately and running as fast as they can away from further exposure? Hardly a vote of confidence in Mt Marion is it?
Mt Cattlin stopped processing to address the high mica content and to increase their grade above 5.5%. Deutsche Bank already has it at 6% but I think it may be a little less than that. Still a very high grade - and barely anything in it between our grade and PLS.
Except that its actually being mined and soon to be shipped...
Both upgrades are important quality improvements and may as well be done now as they will more than compensate, even in the short term. Means our product is faster and easier to process at the converter factories (meaning they can afford to pay more) and we aren't shipping boat loads of useless dust.
I see Superninja over at PLS is running some really bad numbers on comparative costs of lithium companies.
I could write a little report on the glaring errors he presents as fact - if anybody is at all interested in this kind of stuff.
Have a great weekend.
I think Galaxy has a good run coming up and it barely needs any of you to do any research.
Just follow the money.
