It's also worth noting that the Largo ceo did say in the video that he would hope the price would stabilize at $7/lb which is a fair bit lower than our assumed $13/lb. I know he said this mid-2017, but the looming slow down in Chinese production and increase was well-understood at that point if I'm not mistaken. Hopefully he was just lowballing.
I realise that if we were still producing at these levels, we'd be making a satisfactory amount of cashflow, but I would be concerned that getting to production would become much harder.
TMT Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
