From SimonGr on the Min thread...A few tid bits to add from the...

From SimonGr on the Min thread...

A few tid bits to add from the teleconference ...

- $70M of Wodgina tax liability paid in Dec19 (so closer to $350M still owing)
- CFO said MIN will invest/recycle capital for growth as it will do with Wodgina profits (And we should expect them to do this again in future) whilst targeting 20%pa+ returns.
- Lithium business will remain under pressure. Mt Marion costs will increase in 2H with a new pit and therefore higher strip offset by not incurring shutdown costs for Wodgina that were incurred first half. CE confirmed that there is a floor price for SP4/6 on a cost + basis. Interesting statement from CE saying something along lines of “only good ore” they have access to. Wonder what AJM/PLS think of that? Looks like not much more than break even for Li 2H.
- Seems analysts and CE think guidance is low vs what business is currently operating at ... but with coronavirus being such an unknown won’t update guidance until better understood in Mar/Apr.
- Cash pouring in at around $50M/month
- More IO with Parker Range starting up Apr/May
- CE very very positive on opportunities in West Pilbara and elsewhere
- But IMO the best bit was CE’s answer to the last analyst question re doing something big in gas with all the cash they have and setting up the business for decades ... I’ll paraphrase as I didn’t replay to get an exact quote, but CE’s comments was along the lines of We’re going to do something amazing in next few months and I look forward to discussing it with you in 6 months. IMO it’s worth listening to the whole discussion just for the full answer to this last question - enjoy!