Hi u2' The expiration of authority to sell 88mil shares serials GXY but they can legitimately sell 48.5 mil shares later (15% of 323 mil shares) without shareholder approval. Although GXY announced that the completion of the carbonate plant Is financed via a bank credit line, there is, however, some concern re cash burn. It sounds bit fishy for to have a bank credit line to finish the carbonate plant when GXY has $65 mil cash which should be oodles to finish the job!
The 10th Aug ann said that the Sept shipment of 20k tons of spodumene would be a "consignment" to China . It would have been better for this shipment to be a sale rather than a "consignment" for cash-flow reasons Given that this will mean an accumulation of 50k tons spodumene lying in China awaiting the start-up of the carbonate plant early 2012.
The next big derisk event should be late Sept. when there is Results on the quality of product from carbonate plant's secondary processing. This result will certainly move sp either dramatically up or down.
in the interim, there is skepticism re the profitability of Mt Catlin Mine as a stand alone operation as already articulated by Spence.
Cheers moorookamick Salmon fishing in the West of Ireland.
GXY Price at posting:
22.0¢ Sentiment: None Disclosure: Not Held
