GMC 0.00% 0.7¢ gulf manganese corporation limited

DSO Future Revenue

  1. 379 Posts.
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    Hi guys,

    Now that the DSO approval has been received I think we should now turn our attention to the very bright future of GMC and start to consider the future revenue stream which the DSO business should make per annum.

    Manganese ore is priced in dmtu (dry metric tonne units); a ‘unit’ is 10kg, or 1/100th of a tonne. Contract prices arenegotiated based on grade, levels of impurities (e.g. silica) and deleterious elements (e.g. phosphorous) as wellas physical characteristics of the ore – a premium is paid for ‘lump’ over ‘fines’

    Management have already stated that Gulf’sDSO will be in high demand due to its high manganese content and low impurities and as such wouldcommand a premium price over lower grade ores.

    Forgetting that Gulf's DSO is higher grade and quality and calculating a conservative estimate for our future revenue stream from our DSO business, the current price for standard Manganese Ore Index 37% for the week commencing 13/05/2019 was US$5.16.

    The licence will allow GMC to export up to 103,162 tonnes of high-grade manganese ore per year therefore:

    $5.16 US x 37% = $193.5 US/T.

    Assuming Gulf manages to ship the maximum tonnage of manganese ore per year, this gives a maximum revenue of:

    103,162T x $193.5 US = $19,961,847 US per annum or $1,663,487 US per month.

    Now in AUD that would be approx = $2.2 Million minus expenses but seriously good revenue for this company.

    The DSO approval has given this company plenty of upside. Ignore the noise of others who do not hold, have an axe to grid , do not have the patience or who continue to post misinformation. I am very comfortable in where this is going.

    Last edited by PJMac: 18/05/19
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