GXY will weather the storm due to its big cash reserve.
Cash cost curve of lithium concentrate, Greenbushes' cash cost is the lowest in the existing production mines, and it is estimated to be close to 200 US dollars, while the cash cost of other mines basically falls within the range of 450-600 US dollars / ton. Among them, Pilbara and Altura have a lot of room for improvement in the recovery rate due to the newly-built mine. Although the cash cost in 2018 is relatively high, Pilbara is higher than 700 US dollars, but we expect it to be optimized in 2019. To the $450-550, SMM will be further tracked. Overall, in 2019, it will be a tough year for Australian mines, especially for new production. Because many lithium mine companies have high financial costs (more than 12% interest per year), as well as resource taxes, depreciation, etc., in this case, if you can’t effectively reduce your cash cost as soon as possible, Face the danger of clearing out.
Average production cash cost curve for lithium concentrates in various mines in Western Australia:
GXY, stopped releasing cash margin after spodumene price fell.
GXY Price at posting:
$1.37 Sentiment: None Disclosure: Not Held
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