ann out: adjournement of agm, page-16

It does not make much sense. They are desperate for funds but wont let instos or sophisticated investors invest???

How could they be so desperate for funds when they are receiving $3.5m/mth from lithium carbonate sales (increasing) and have at least 6mths feed left in the stockpile? Feeding on the stockpile gives them an extra $2400 per ton of Li2CO3 sold.

They also have the option of selling non-core assets. Why not offer the Korean Consortium a greater share of Sal de Vida (eg 49%) and shares in GXY? Or sell James Bay or Mt Catlin to ROC who missed out in acquiring Talison? They say they will do this after the rights issue? Why not do it before and pay down debt first?

Personally, I believe insiders are collaborating with outsiders to hand the company over to someone who wants it for as cheap as chips (8c/share via extra rights allocation and a self induced sell-off). I suspect certain shareholders (eg Deutsche Bank) will increase their share to 19.9% out of this and other substantial holders will emerge who together hold a majority stake (obtained for 8c/share).

I would prefer management to get another job and let an administrator make GXY (and/or its assets) publicly available to the highest bidder which should get us at least 20c/share (worst case) based on net asset value (at fire sale prices).