new low, page-19

Good work butcher with your new thread. Prices are much the same then. Assuming that they receive $500 premium (from your figure $300-$500) for the alloy and that the overall margin is $700, then the magnesium on its own would receive $200 margin per tonne. A pretty thin margin but it doesn't look like it moves around much. 200 p/t times 20000 is $4m - still pretty good for market cap of $14m. In reality (at the moment), the alloy is only $300 premium which means they should be getting $400 margin. $400 times 20000 equals $8m - even better.

However, they'll be most likely be selling domestically for $150 cheaper which eats into the margin. I don't know what to make of it, but it does seem cheap if the expected costs in producing are still the same. Bugger it, let's just see if they can get the loan first and then the 20k pa.