Mt Cattlin production update, page-4

Not sure we even have to wait that long. The plant commences at name plate of 120kt and they've been banging away at it for a few months to improve the circuits.
The updated production of 150kt should come online very soon and higher 10-20% spodumene price should be part of the negotiated deal for the next shipment. Tse says that 200kt is what they are really shooting for. But lets put that aside for the mo'. Lets say that its an additional 25% capacity for 2018 and leave it aside for now.

Beautiful thing about companies that actually make money is that they can be judged on their P/E.
If GMM's share of the new earning model are 150000t * $720USD / 2 = $54m USD.
Take away 150000 * $40/2 = $3m for spodumene mining production costs
Take away another $10m for GXY payments, shipping, admin, contingency - just to make sure its a conservative estimate.

Lets round down and say profit its just $40mUSD to be safe. thats $52m AUD.
We have about 312m shares out there.
Thats a near term earning per share of around 16c.

Fair value in a growth boom industry may be a multiple of between 10 and 15.
Lets just go with 10. GMM would be valued at $1.60. P/E of 15 would be $2.40.

And if my calcs are a bit wonky - then its safe to say that there is still significant production headroom (up to 200kt) and possible upward price pressure to get us there.

sheesh - while I was typing this it went up 2c to 39c. Another new high!
See? We're going to start putting on some real pace now.
Go GMM!