Originally posted by Ozyoioi
I'd actually seriously like to understand:
- Are you saying Panasonic is a GXY customer, or not?
- If they are not, then the rest of the commentary about AT being a price taker is moot
- If they are, then sure, there is a likelihood that the Japanese (stereotyping their entire culture...), will drive a hard bargain. However, the Japanese pricing for Spod is also higher than the Chinese pricing which various experts have noted as having been driven low by lower quality production from Qinghai.
So there are supportive, as well as balancing factors at play here, if Panasonic is indeed currently a GXY customer.
In terms of cash margin reduction, suspect quite a bit of that margin reduction is a consequence of the completion (went above budget) and now ramping up of yield optimisation, coupled with mining and mining-follow-through from the previous quarter/s, of lower quality weathered ore from the 2SW pit.
Announced in the last quarterly, they are now mining East of Floater Road. So the grade and throughput should be better, but countered by the lower price this quarte and the overburden removal to get to the ore.
Will be interesting to see if the next cash margin value is higher or lower.
My bet is lower next quarter with signalling that the following quarter should be better - ~ $150-200/t. This is likely why GXY has fallen that little bit further after the last quarterly - costs are currently high for whatever reason and until they stabilise, the market is going to price Mt.Cattlin in as a marginal cash flow producing asset.
Ironically, AJM and PLS production costs are undoubtedly higher all-in and I'd struggle to believe any of the newer spod mines can make money (considering all in/financing costs) at prices below $600.The question is which is the weaker link: the established, lower growth potential mine fighting higher production cost, or the new fangled mine with lower steady-state production cost but huge upramping and financing cost to realise its potential?
I am 100% confident we have five customers and have a 200,000 t p/a supply agreement
Offtake arrangements are being sold through Mitsubishi to convert into carbonate and hydroxide.... Panasonic is one of them.
This is general knowledge and no idea what shipping reports have got to do with our 200,000t p/a agreement with Mitsubishi.
Prices are falling and this again is general knowledge in quarterly reports as cash margins are falling.
Ok -- over this forum.
