Pilbara Minerals PLS is 65c now, only down 48% from their $1.25 high..Like our Galaxy all their lithium production is coming-out of Western Australian ground..GXY was shorted to a new multi-year low yesterday and my top-up awaiting buy was hit Shorters can't have them (to cover) sorry PLS is up 14% from last year's shorted low of 57c.
If POSCO was to buy the rest of our Argentina tenements we'd still be a W.A. lithium producer (like PLS) for many years to come..but the big difference would be over a Billion $ cash bank-balance for Galaxy..our current Market Cap is less than $800 million. The numbers don't tally. With $1 Billion + 'war chest' GXY could buy a large-chunk of our W.A. compatriots..at VERY low SP's. Cash is King right now..Those on the cusp-of-production are struggling to raise the necessary-funds to achieve their goal. The banks lying about an 'over supply' won't finance the projects because they refuse to understand the market & industry. The lithium prices they're aiming to squash-down will spring-back-up more dramatically when Mr Market wakes-up to discover demand outstripping under-funded production supply.
They did the same thing to iron-ore a few years ago with IO bottoming at AUD $45 ton..as our W.A. Fortescue was shorted down to $1.44..A year later the same FMG was up at $7 + and still doing very-nicely today with IO priced at AUD $125 ton. The banks had lied about an 'over supply exceeding demand' ..Demand is stronger than ever before. They spooked Vale into cutting corners to reduce-costs and now multiple tailings-dam disasters are creating even more upward-pressure on supply/IO prices. The banks have blood on their hands (aside from the smaller producers who were driven into bankruptcy..even our mid-cap Arrium) but it's only the mining-execs who go to jail :
GXY is vastly undervalued compared with our compatriot lithium-producing peer PLS. We are the not-the-one who's financially dependent on others. The big question is why the most bulletproof stock being bullied the most..There should be a Royal Commission into manipulation of our market/stocks and ASIC should pre-empt this with an investigation into the trading of our Galaxy. We are the success story of the ASX but the scoreboard is reflecting the opposite..i'm loving the buy opportunists by the way and feeling obliged to speak-out against the injustice. Some people are under Margin Loan pressure and if one was going to use credit to invest in a stock, surely the cashed-up fundamentally sound GXY would be top of one's list trading under $2. The banks hassling people on Margin Calls with GXY dipping below $1.90 (trying to get them to sell GXY at a loss) are probably the same ones colluding on the negative short-selling that created the artificially low price..It didn't take long to rebound..and there's a huge amount of upside to play out yet..Take a look at our compatriots FMG & OZL to see-what-happened after the shorters backed-off after creating artificial bottoms around $2 on each stock..
Regards to the longs
GXY Price at posting:
$1.94 Sentiment: Buy Disclosure: Held
Shorters can't have them (to cover) sorry
