Magic Month of May

Hello punters

Well , what a magic month of may . Let's reflect , as i roll the highlights package of announcements .

2/5/17 Offtake and Financing Support with Gangfeng Lithium
We have a new bestie . Gangfeng Lithium ( MC US 4.6 BILL ) . Stage 1 off-take agreement over initial 10 year term , with futher  2 x 5 year options .   Thats 20 years in total . Thats right , i said twenty . Throwing in a lazy US20Mill upfront as well . Want a 4mpta mine ? Yes please . Gangfeng will take upto 50% of stage 2 expanded production and throw in debt facility of 50% ( around 65mill ) . Worth the wait ? You betcha
GTC rating  9.5 /10

10/5/17   Mining Proposal Approval for Pilgangoora Project
Finally the final mining permit is approved . Did management stuff up the paperwork ? We'll never know . Anyway , who gives a rats , its in the bag . Still , delayed the project by around 3 months .
GTC rating   6.5/10

12/5/17   Outstanding Testwork Delivers Process Improvements
Technical grade concentrate  ( 7.22 % lithia ) readily available through first run in the pilot flotation circuit . So far only Greenbushes supply tech grade . Not for long . We are next . 50 ktpa per year . 50 x AUD1600 ( aud2000-400) = 80mill . The cream on the top .
GTC rating 9.5/10

17/5/17 Pilbara Minerals Bond Issue
Senior secured bond issue to raise between US80 - 100Mill . You beauty , no CR . Ken is listening . Would have preferred a done deal , with detail , but I'm a happy camper with this one . So should you .
GTC rating 8/10

Their it is . 4 fantastic announcements in the space of 2 weeks ! Well done management . We are going mining . Crack the Grange Neil .

The million dollar question still remains . What will we be selling our 6% spodumene concentrate for ??? Well , its a fomula based , on market reference data for battery grade lithium carbonate pricing , comprising both chinese and import price outcomes ( including downside protection )

Based on Blue Oceans report estimates dated 20Sept 2016 has this scenario

Lithium Carbonate price (US / T ) Equivalent Spodumene Price (US / T)
   10 000   525
   12 000   650
   14 000   750
   20 000 1000  
Currently , the lithium carbonate price is around the 20 600 mark ( less 17% VAT for supplier price ) . Source @SuperNinja ( tweet ) , and has been rising . The mercurial one expects further price hikes from July 2017 . Up 14% last 3 months .

Of course , the million dollar question needs to be asked by none other than Eddie Macguire ( EM ) , the game show host of Who Wants To Be A Millionaire . I have always wanted to be part of the show . So here goes .

EM :  ok , gee tee cee , you are on $500 000 dollars . Do you wish to play for ONE MILLION dollars .

GTC :  Well i would like to pay off my mortgage Eddie , and as i live in Sydney , ill have to go for it .

EM  :   Lol . Ok , so for a million dollars , the question is .
What will be Pilbara Minerals initial selling price be for the 6%  spodumene concentrate in Q2 2018 . Is it .
A . Under US $800 Per tonne
B . US $800 - US$1000 per tonne
C . US $1000 - US 1200 per tonne  
D . Over US $1200 per tonne

GTC :  Geez , it seems like you left the hardest question till last Eddie . I've got a feeling it might be C or D , but I'm not sure .

EM :  lol . What did you expect ?  You still have your phone a friend option up your sleeve .

GTC :  OK . I might use it then . I have forgotten who i nominated though . Can you let me know who they are ?

EM  :  Sure thing . Its either Michael Langford , Ken Brinsden or Donald Trump .

GTC  :   Mmm . Well , i think Michael is on another photo shoot in China , and Donald is playing golf at the moment . I'll go for Ken , Eddie .

EM :  ring ring ring , hello Ken its Eddie Macguire from who wants to be a Millionaire calling . I have gee tee cee in the studio .

KB  :  Yes i know , im watching the show . Im a big fan . I want to be a Millionaire too . Hello gee tee cee . How are they hangin ?

GTC :  Mate , we are on live TV . Lol . Do you know the answer ?

KB :  Yep , its D .

GTC  :  Are you sure ?

KB :  Lol . Yes , you imbecile .

GTC  :  OK Eddie , I'll go for D . Lock it in Eddie .

EM  :  Are you sure gee tee cee ?

GTC  :  Yes , you imbecile . Lol . When do i get the million bucks ?

EM :  After this commercial break .


Cheerio all , gtc