Australia's largest stock trading and investment forum Australia's #1 stock forum

GXY

0.00%

$5.28 galaxy resources limited

The response you got was a curious one: "Ha ha, if Mt Cattlin...

First 2 Last

Share
Profile

Follow
Upstart777

3,795 Posts.

227

09/06/16

21:45

Post #: 18000747
Share

Originally posted by Thesi ↑

Here is a response to @ozblue I placed in the Pilbara thread and thought I would share it here for those that are interested on my comparison.

"Have been asked for an analysis by moderators to answer your question so here it is.

When Pilbara goes towards construction, based on what I have seen mentioned by John Holmes of the companies management they are examining production rate of 300,000tpa of spodumene.

At current price of $600 USD per tonne that would equate to $242 million per annum and at a 10% value on income to market cap would place Pilbara at a market cap of $2.4 billion.

Michael Fotios in a recent interview has indicated that Mt Cattlin is being considered to upgrade to 250,000tpa and James Bay has been considered to be a replication of Mt Cattlin.

The construction of James Bay as a replication would be completed by the time Pilbara have their own plant constructed. Forgetting ramp up cycle to maintain an apples for apples comparison the rock projects alone for Galaxy Resources would be 500,000tpa of spodumene at that same $600pt again using apples for apples.

Mt Cattlin and James Bay alone using the same equation I used for Pilbara would provide an annual revenue stream of $403 million and at a 10% value on income to market cap would place Galaxy Resources at a market cap of $4 billion.

Sal De Vida at full production will produce 25,000 tonnes of final grade lithium. Similar to that of Orocobre. Right now Orocobre are receiving $10,000 USD per tonne of their final product.

As an apples for apples comparison with Orocobre Sal De Vida will add a further $3.4 billion to that market cap bringing the grand total to $7.4 billion.

To be able to achieve that same level of market cap Pilbara would need to produce 916,000 tonnes per annum of spodumene.

I never look at the through put I always look at the final product. Be it spodumene or the LCE.

Good luck!"

Expand

The response you got was a curious one:

"Ha ha, if Mt Cattlin ramps up to that level the mine will be exhausted in 7 years. Pilgangoora will still be operating in 50."

I would rather have my cake and eat it right now than wait for crumbs over 50 years....

You're such a stirrer Thesi

Last edited by Upstart777: 09/06/16

GXY Price at posting: 54.5¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

BYH

Bryah gains $408K government rebate for work on copper target Narracoota

Talking the US election, the spectre of Trump and what's hot on the ASX200: Wealth Within

IVR

Investigator Resources hits 8m @ 1.06% copper on-site Stuart Shelf JV project acreage

WC8

Leia pegmatite pulls up recoveries of 84% lithium for Wildcat in WA

AI stocks: What to expect in 2024-25