mt catlin viability

While there is alot of forward focus on the opening of the
Carbonate plant in China, a quick check of Mt Catlin cost of production for the September quarter reveals that the mine produced 20,569 tons of spodumene for a production cost of $12.334 million.

Thats a cost of $599/ton.

An earlier GXY report revealed that this spodumine was been
transferred to China at $238/ton.

That's a massive loss of $361/ton

If this continues up to the end of this quarter then there will have been 50,000 tons spodumene shipped to China and if the transfer price is still $238/ton, the accumulative
loss for Mt Catlin will be $18mil.

Furthermore with a cash burn of $49 mil for the Sept qtr
and $39.5 mil in the bank and no income for the qtr, GXY will likely be out of cash come the 31st December if Dec qtr cash burn is similar to that of the Sept qtr.

Cheers
Moorookamick