Rightly copped a schellacking on friday. When you see "plant halt, care and maintenance" and highlighting cash burn rates. Was only going one way wasn't it.
Its a pain. But hopefully its first the bad news, then onwards and upwards from here. Things can only get better right? No more skeletons in the closet.I know some of you here had mentioned the high op costs at Mt Cattlin before.
But importantly management is doing something and exercising some prudent cost management. Other than cost savings, there is the human/social cost though and both workers and contractors will be impacted even though the company is doing their best to save jobs.
Yes It seems an unfortunate timing issue and hiccup in execution of strategy but I don't see it as a disaster. Excess capacity means they are doing better than expected, ahead of schedule. If the LC plant can deliver this sort of performance we should be in for some solid cash flow and improving bottom line. Offtakes in place money making infrastructure in place. Lets get some good news Galaxy. Please.
Long term stock needing much patience. Some may have lost patience, and confidence and decide to jump ship. The company has got this far I don't think they'll be turning back now back. Call me nuts, but I am looking at averaging down again, hopefully for the last time before we start moving in the right direction.
GXY Price at posting:
17.8¢ Sentiment: LT Buy Disclosure: Held
