Martin Conversation, page-69

Some good points you have raised there GCar.

I want to thank you for posting that chart. It is very significant because it shows the fall in Galaxy's share price commenced immediately after the announcement on 29 May 2018 that Galaxy had agreed to sell the northern tenements at SdV to POSCO for US $280m. Here is an extract from that Notice that contains the key points. If you want to have a look at the full announcement, then go to https://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=gxy&timeframe=Y&year=2018

This announcement was the exact time that the massive shorting and manipulation campaign against the company's share price started and it has continued unabated since then. This was before the general downturn in sentiment against the Li sector. It was GXY specific.

The share price when that POSCO announcement was made was about $3.50, so yes it had dropped from the peak share price of $4.50 or thereabouts. In fact, from about the start of 2018 up to the moment that POSCO deal was announced, the share price was tracking along between about $3 and $3.50. But from the time the POSCO "good news" sale agreement was announced GXY's share price started to be smashed. Hardly makes sense does it - I mean the company announces it is going to sell some unwanted tenements for US $280m and the share price from that point on is unrelentingly smashed by shorters.

Anyway, it took until 26 November before the POSCO deal was completed b y which the share price was about $2.50. It wasn't at this price due to changed sentiment, it was at this price due to the ongoing shorting campaign.

Despite the despondency we long termers had about the unrelenting shorting campaign, we hung on to our shares because in addition to the POSCO deal, we were also told by the company (in the Sept 2018 Quarterly report and during the associated conference call) that JP Morgan was reviewing the bids by those interested in doing a joint venture at SdV. We were told that the successful bid would be announced before the end of the year. By the end of the year, the share price had hit about $2.30, but still no announcement of the successful bidder. At the 11th hour on 31 December 2018 (and I am sure we only got this announcement because shareholders by this time were 'screaming' on HC and elsewhere about the lack of information) we were told we needed to wait a bit longer:



So we are kept waiting for another 3 months, only to be told nothing is happening. By this time, the share price was around $2.

Only around the time we were told there would be no SdV joint venture had the sentiment towards the Li sector started to fall. Prior to that, the fall in GXY's share price was due to manipulation through and through (at a time when we were looking to bank US $280m and looking forward to the selection of a joint venturer). The eventual announcement by the company that the SdV joint venture was not going to happen ended up aiding and facilitating the manipulation, which has continued on to this day.

I am very clear in my mind that SdV has been a target for 2 years. I am also clear in my mind that the company has contributed to the share price malaise in more recent times by the failures that I have discussed in my previous post. Leaving aside the issue relating to SdV, what do you think of the company's failure (until the recent quarterly) to keep the market informed about the broken contracts and 70% reduced prices for the spod that it did sell? Do you think this information might have been relevant to share price? I sure do and it is one of the reasons I think we need some changes made to the Board.