All roads pretty much lead to the one destination -
we are expecting an announcement about the Offtake - and here it is.
Something in the contract arrangement has likely changed.
As if that hasn't been happening just about every mention of it - client was Mitsubishi,then chinese converters, then Mits + converters, then it was soon, then imminent.
They've been negotiating and contracting for 6-7 weeks now so its unlikely that there will be "bad news" - just slightly different and that may necessitate that the market gets a little pause to consider.
They've had all this time to replace any "bad news" with "better news" - so I wouldn't hold your breath that this TH is just a formality at worst, or a much-improved deal at best.
This could mean swapping out one of the clients, not involving Mitsubishi at all in the process (why were they there anyway - who needs a sales agent for 100% off-take?), reverting back to Mitsubishi as 100% client. In all likelihood the deal is more-or-less the same. GXY need a signing before shipment is ready and there are plenty of under-supplied spodumene plants who'd be lining up to replace anyone that dragged their feet.
Most likely of all is its the payment confirmation with a minor adjustment in the size, date and/or price in the spodumene shipments.
The only other real possibility I think is a take over bid.
And this only because the new buyer may not want these contracts to proceed - knowing that they'd want to control the off-take themselves - and get in now before its inked and our share price is still at a massive discount.
Galaxy has been in the lithium news a lot lately and Anthony Tse has been meeting the top guys at the conferences.
There would be quite a few big lithium or energy players that would consider GXY a bargain for the chance to get straight to the top of the lithium league table.
The question then would be - how much would we accept?
I'd be really disappointed in a take-over right now.
I want to hang onto these until they hit dividends and Big 4 prices.
- Forums
- ASX - By Stock
- GXY
- Ann: Trading Halt-GXY.AX
Ann: Trading Halt-GXY.AX, page-53
-
-
- There are more pages in this discussion • 142 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GXY (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online