In hind sight GXY either messed up or was unlucky with not getting a deal done at the top of the market and is now a victim of it's own success... GXY is in a financial position where it doesn't need to make desperate low ball long term deals on a tear 1 asset in a bear lithium market. Good. The big dogs who GXY wants as a partner are in the lucky position of having the reality that many lithium minors will not make it through this bear market phase without making a deal and therefore are desperately wanting even low-ball offers so for them, why even bother trying to catch such a difficult fish like GXY. This perfect storm has left GXY dancing on it's own. Time will tell if it's a master stroke or a disaster... Short term pain for long term gain, most likely IMO.
Until the bulls start to run with lithium again the chances of making a deal are virtually zero... GXY can probably keep building SDV with the cash on hand for another year or so at least (guessing) but will that be long enough for the sentiment to turn? Who knows!
Realistically, long term looks potentially better than ever right now although the dream of going ahead risk free is now dead. We are simply back to high risk, high reward now. I hope the new CEO knows what he's doing. I now expect a take over offer well before any of that comes into play anyway :/
these announcements aren't a huge shock but certainly takes the wind out of my sails... I thought about selling out but it doesn't matter what is behind us, only what is in front matters now and realistically, why would I sell at rock bottom prices? I messed up by not selling when it was green but I will not make the double mistake by selling now while everything is red.
This one is simply just put into the long term basket.
GXY Price at posting:
$1.64 Sentiment: Buy Disclosure: Held
