Ok, so POSCO came out of the blue, sent the price up to $3.60.
That then got battered down to $2.77, and the confirmation of the POSCO deal pushed it back up to $3.07.
So now we've been shorted to hell again, down to $2.36, now back at $2.46. GXY is in some sort of purgatory.
So what are we waiting for?
At James Bay feasibility studies are ongoing and the Project Notice has been submitted to the Canadian Government and the Quebec Government. Geological investigations show the pegmatite dykes at James Bay are almost always spodumene-bearing. The feasibility study results will be very interesting.
Mt Cattlin is a license to print money. With MC at full capacity, ore can be processed at a rate of 1.6 million tonnes per annum with lithium oxide concentrate production of 180,000 tpa. I am not sure if there's any news pending from MC but I am sure someone can let us know.
And then there is SDV, significantly bigger and a lower-cost operation than Mt Cattlin. EV sales are starting to really take off, sentiment on Li is recovering, the "oversupply" hoax is vanishing, and SDV is "one of the world’s largest and highest quality undeveloped lithium brine deposits". So, we are waiting for the announcement of an offtake deal for SDV (and a potentially-linked strategic partnership).
There was talk of the SDV deal being announced during the September quarter, but it could be announced in October or November. It's close - we know that much.
Anyone else want to comment?
GXY Price at posting:
$2.45 Sentiment: Buy Disclosure: Held
