GXY valuation - PE multiple, page-79

DSO drama update:

Looks like ML's twitter post has become price-sensitive-ann worthy for Mineral Resources.

Too bad they filled their Ann with vague information that did not definitely responded to the claims against Wodgina. It is also worth noting that Baosteel has denied making any official claims yet Min Res did not reject the claim of their DSO still being unconverted into carbonate or hydroxide. Let me think why that might be...

It now looks like Joe Lowry is adding his views on the DSO matter:



Doesn't help that MIN directors was dumping shares on market just when ML's twitter post first got posted.

@airconditioner - I wonder if that Deutsche's analyst has gotten fired yet.

Anyhow, I think now that the DSO idea is virtually dead (again), lithium supply forecasts will need to be revised downwards. What would that mean for us? How about that 20% increase for spodumene off take prices for 2018? US$1000+? Imagine the margins.

For those concerned about the share price - think of it this way. If we are still at $3-4 in 3-4 years with all 3 mines running we might be the world's first resource company to pay a 50% dividend yield. Of course, more reasonably is a div yield of 5% which would put us at a $30 SP. Crazy.

Move aside FMG and others, GXY will be the new dark horse company on the Aussie bourse in the years to come.

And for those who would like more communication between management and shareholders, I'd suggest this will not likely happen as Anthony Tse is running the ship like Rio or BHP. That means that although much magic and wizardry is being discussed over AT's mahogany office desk, we probably won't hear much about it. This was made clear when AT said the company would not be announcing the periodic spodumene shipments.

BUT this also means when the next Sal de Vida announcement comes out, we can get extra excited for it.