Surely this thing won't still be listed on the ASX by the end of the year...?
My back of the envelope calculations for what they are worth... Would make a handy little bolt on to a number of large resource houses looking to diversify away from the minimal (non existent) profit margins that exist at current commodity prices for most bulk/base metal producers.
At a spodumene price of US$600/T, an exchange rate of 75c and a throughput of 800Ktpa Mt Cattlin should make free cashflow of $71mil p.a, (c.$35m GMM share).
Chatting to a few industry sources I am very confident that there’s upside to the spodumene price and throughput. Assuming US$800/T, an exchange rate of 70c and a throughput of 1.2Mtpa Mt Cattlin should make free cashflow of $165mil p.a. (c. $82m GMM share)
Run your own numbers but I believe we will see US$900/T for spodumene in the next 12 months and a sub 70c exchange rate...
On a very conservative 6x multiple you have a $480-$540mil market cap for GMM's share. Absolute no brainer for mine... If it hasn't been taken over it won't be below $1 by Christmas!
GLTAH
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