Takeover Target?

Surely this thing won't still be listed on the ASX by the end of the year...?

My back of the envelope calculations for what they are worth... Would make a handy little bolt on to a number of large resource houses looking to diversify away from the minimal (non existent) profit margins that exist at current commodity prices for most bulk/base metal producers.

At a spodumene price of US$600/T, an exchange rate of 75c and a throughput of 800Ktpa Mt Cattlin should make free cashflow of $71mil p.a, (c.$35m GMM share).

Chatting to a few industry sources I am very confident that there’s upside to the spodumene price and throughput. Assuming US$800/T, an exchange rate of 70c and a throughput of 1.2Mtpa Mt Cattlin should make free cashflow of $165mil p.a. (c. $82m GMM share)

Run your own numbers but I believe we will see US$900/T for spodumene in the next 12 months and a sub 70c exchange rate...

On a very conservative 6x multiple you have a $480-$540mil market cap for GMM's share. Absolute no brainer for mine... If it hasn't been taken over it won't be below $1 by Christmas!

GLTAH

The Doc