As their ASP in Q4 was $10.89, they need to get their cost down into the single digits, but they had previously mentioned that this would be a long process and with such a low production level there fixed costs have a significant impact on cost per Kg.
They need to ramp up production to lower cost per Kg, but this will likely put more downward pressure on prices.
Yep. The results are pretty much in line (at a quick glance). And Chlor-Alkali is operational.
I'm not understanding the losses yet. There is $120 million reduction in the value of Goodwill ... that clouds the numbers a bit. Magnet revenues look lower than I expected.
Some things in the non-GAAP breakdown:
$119.7 million writedown on Goodwill.
$16.8 million inventory writedown
$5.4 million water removal
$9.4 million investment writedowns (I wonder if this is Boulder Wind Power?)
About $30 million depreciation, amortization
I was way off in guessing at the magnet and Alloy sector. My guess:
Resource . . . . . 1100 x $13 x 0.94 ASP = $13.4 million revenues, $46 million loss
Oxides . . . . . . . 1700 x $34 x 0.94 ASP = $54.3 million revenues, $7 million loss
Mag+Alloy . . . . 1800 x $43 ASP = $77.4 million revenues, $15 million profit
Rare Metal . . . . . 100 x $200 ASP = $20 million revenues, breakeven
What it is:
Resource . . . . . 1034 x $10.89 ASP = $11.3 million revenues
Oxides . . . . . . . 1760 x $31.48 ASP = $55.4 million revenues
Mag+Alloy . . . . 1353 x $43.82 ASP = $59.3 million revenues
Rare Metal . . . . . 58 x $249.93 ASP = $14.5 million revenues
IMO, they need to explain the magnet and alloy low volume.