Chinese player swoops in on embattled WA lithium miner, page-51

Regarding your first point, I agree. I don't speak on behalf of GXY shareholders, only myself.

I also agree that the best time to acquire an asset is when it is in distress. The key is not to overpay. Value wise, it is quite revealing that no-one other than the existing senior secured creditor at the time (GXY) and a shady shell company (CHEL) made a bid.

As far as acquiring A40's assets, the issue isn't so much the acquisition costs but the ongoing OPEX, costs from C&M, VA fees, RM fees and now a $6-10 mill break fee on the CHEL debt. That's before we even get into the additional CAPEX required for a yield optimisation program to reduce OPEX, and a fines circuit which GXY's original investment was meant to pay for, rather than new business cards after a couple of name changes.

At the end of the day, it doesn't matter what GXY was willing to pay, it would still be up for tens of millions more just to get Bald Hill to a level of efficiency where it could break even in the current environment. Does that sound like a wise allocation of capital and acting in the best interests of GXY shareholders? I don't think so.

As far as losing big time if A40 is liquidated, you're right. As I already mentioned though, this money was gone the second A40 went into VA. Throwing in another $100-150 million just to "win" is lunacy IMO.