nobananas"At a guess gmc, I'd say that they are thinking ahead....

nobananas
"At a guess gmc, I'd say that they are thinking ahead. Back in prospectus days, they just wanted to produce magnesium. They now want to do the full alloy (is that right?). So maybe they're looking two steps ahead and going for the jugular. I have no idea."
They have always sought to sell alloy primarily.
The alloy is 90% Mg, 9% Al and 1%Zn, and was selling for a 10-20% premium to pure Mg. Using their figures, pure Mg were about $2880/t, and the alloy a further $300-500/t premium. Even their prospectus did claim margins of $700/t for the alloy produced, and they used that in presentations and broker reports.
Their focus was production of Mg/alloy to the Phase III of 105ktpa.
Phase I was to cost about $6.7m, Phase II about $15m and Phase III about $22m, and funding to Phase III was to be funded through existing cash, operating cash and debt.
Now they dont even have plans to start Phase II.They have no definate plans at all.
No wonder Mr Market is confused