The GMC smelter construction site reminds me of Pompeii, definitely doesn't look like a smelter that will be competing against the worlds best.
So now its confirmed ......electricity/power at US$0.086c that is not a competitive rate, already triple the cost of other smelters in Asia. Therefore profit will be impacted and definitely not feasible if commodity prices turn downwards.
Why hasn't this information been given to the market? If its OK to give this info to a Top 20 presentation, then why isn't this info made public, its no wonder the large T20 shareholder is selling. I would be too if power is this expensive.
If GMC buys a mine for $1 million, you'd have to wonder about the quality/quantity. What will be the cash cost to produce, doubt it will be under US$3.00/dmtu. Thats what GMC needs to be competitive, especially with such expensive power.
GMC Price at posting:
1.2¢ Sentiment: Sell Disclosure: Not Held