Undiluted Market Cap $222.9m, Cash $10.5m @ 31 Dec.
Of the four listed companies that will be producing spodumene in Australia prior to AJM and PLS coming online GMM is the cheapest producer in terms of Mcap/LCE (hardrock only) by a decent measure. This makes it attractive to investors and as a takeover target. They are also projecting slightly cheaper total costs per tonne to Mt Marion producers (303 vs 324). The companies producing now are the only ones positioned to take advantage of a short term supply squeeze.
Downsides - the spodumene is 5.5% and above not 6%. They are only projecting 65kt in CY16, 150kt CY17 and 200kt thereafter (50% of which is GMMs) and GMM has to payout Galaxy US6m a year for next three years to get its 50% equity in Mt Cattlin.
