The >50% increase in the 44%Mn price confirms the market is worried about the supply situation over the period where the GEMCO Groote Eylandt project is out of action. While E25 doesn't produce a 44% grade, offtake partners decided this was the most appropriate benchmark, presumably due to the associated impurity mix. E25 will receive a discount to this rate and shipping costs will also need to be deducted.
The point just above+25% is confirmed from OM Holdings website as US$6.06 so this fastmarkets price increase will take the price to around US$6.94 (+/- a few cents). With an AUD/USD exchange rate of 0.66 the price before grade adjustments, contract adjustments and shipping costs is now around A$10.50/dmtu. This is the price range where its clear that E25's existing operation should be profitable in a restart scenario.
With a >50% change in pricing its about time for E25 to provide an update on their thinking.
E25 Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
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