In order to define reserves, they had to demonstrate they are economic. To do so, they gained an independent price "specifically for Bauxite Hill's bauxite product specification". That is primarily for the Al2O3 and SiO2 grade of the defined reserves. Yes, it is a higher impurity resource, but their DFS pricing accounts for that.
Then their latest upgrade presentations use that specific pricing for their product, below spot price, based on their reserve specification, to derive the $15/WMT margin at their expected cost base. And there is plenty of margin there to pay off the debt.
It looks like there may have been a small short position opened again yesterday - after previous shorts were closed. The depth looks against a short being successful. And I don't think your argument supports any sort of shorting success here either.
MMI Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
