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Thesi

8,739 Posts.

2622

17/05/16

13:11

Post #: 17789336
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Originally posted by airconditioner ↑

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.

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Like all you have said @airconditioner except the take over isn't it. They have explained it to be for the offtake in the announcements issued.

The original agreement was to have an upfront payment. - In negotiation that is a sign of "I am really serious about this lets talk!"

I am crossing all my fingers and toes that we just picked up a processing plant or a longer term arrangement.

I am wondering if GMM and GXY watch this forum and have a good laugh knowing what they know. xx

GXY Price at posting: 38.5¢ Sentiment: None Disclosure: Held
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