General Mining Corporation Limited Raising Target Price 95c Cannacord
GMM have previously provided guidance for commissioning the coarse circuit by Jun’16, with first product shipments in Jul/Aug’16.
The company is currently targeting reaching base case plant throughput of 800ktpa by mid’16, with the second stage of commissioning (optimisation of coarse recovery circuit to lift lithium recoveries to 70-75%.) in 2H’16.
Our current forecasts see Mt Cattlin achieving base case production rates in Dec’16, with a progressive ramp up to 1.5 Mtpa achieved by Q1’18.
At this scale of LCE production (~28ktpa lithium carbonate equivalent, or LCE), we estimate that Mt Cattlin would be among the top 5 largest lithium operations in the world today.
The Big guys likely need to diversify out of Chile for political reasons. They now have the currency and balance sheet to do that we should see some sector consolidation soon enough, GMM/GXY are in a very strong position to benefit from any action.
Those Chinese converters are literally waiting arms wide open for Mt Cattlin concentrate to land.
Whilst others are merely acquiring prospective licences & exploring, GMM are in production and best dressed first in to the party.
Even Volvo are now stating they will have 1m fully electric cars on the road by 2025.
As Tony Seba states, this is very Disruptive and the proof is in the announced Battery mega factories that are currently being built, staged & planned.
