Just keep in mind 1 thing when you are doing those calculations of annual income.
They will be paying Galaxy Resources $6 million per year for the next 3 years. But with that said it's still a pretty good return compared to current market cap.
If they can accelerate the build for James Bay with Galaxy then its going to be a significant boost.
The thing I like about these guys is they owe nothing, only around 311 million shares in market and with the planned income they wont require a capital raising like the other stocks out there.
Plus in their agreement with Mitsubishi they are hoping to secure some vertical integration by way of a spodumene processor. - What they are selling is spodumene and is around 5.5% lithium content.
A processor makes the 99.5% battery grade so you go from $600 USD per tonne up to $13,000 to $20,000 per tonne (reports indicate currently $23,000 per tonne) Anthony in the video I shared with you before explains the conversion rate is at around 8:1 so for every 8 tonne of spodumene you get one tonne of battery grade and if you consider the conversion cost to be $3000 it gives you a fair indication of the mark up after the extraction process has been done.
GMM Price at posting:
53.0¢ Sentiment: Buy Disclosure: Held
