GALAXY GOING DOWNSTREAM, page-21

Ok so the real news from the AGM is now out:
1 – 40% stake in a downstream Chinese converter plant 25,000tpa LCE for $50-60m capex. Would this perhaps be the same converter plant that A40 secured a JV with for no capex a few weeks ago?
2 – Strong hints of a future merger, takeover or joint venture operation with A40 – IMO it points to a likely JV development of the Cowan tenements, if not a merger altogether.
3 - Share buyback possibility mentioned to stave off the shorters – this would be a nice bit of icing on the cake, and put a floor in the share price and a rocket under it – suspect this will be scheduled for just after the directors all buy their next chunk of shares on market with their bonuses. And I’m totally fine with that
4 - Talk of possible new Chinese offtake agreements in exchange for a minority stake – more details please soon.
5 - Still interested parties in SDV – with one inspecting the brine extraction plant, but it is good to hear (IMO) that GXY rejected offers from big players seeking to take a majority stake in the project. We still have control. This is good long term. We are not doing a KDR and rolling over for a meagre 40% sugar hit to the SP. Rest assured that WES would have certainly looked hard at GXY and almost certainly had a tilt at it before KDR took the bait.
6 - Hints of rising interest from the US in the James Bay project.

The potential pipeline for this company over the next 3 years is massive.Imagine the newsflow over the next 12-24 months running along these lines:
Mt Cattlin running at 200,000+ tpa cashflow positive to the tune of AU$100m.
Production costs around $300/tonne the lowest of all hardrock producers.
Other mines struggling to breakeven and shelving expansion plans until prices rise.
Results of direct extraction trials at SDV announced. Development plan and timeline released, with or without a minority partner buying a stake in it.
Joint Venture announced regarding development of Cowan Lithium tenements
Full details on the 40% stake in the Chinese converter plant
New offtake deals announced
Minority partner announced for development of James Bay
LPD extraction from the Mt Cattlin Tailings

Everyone seems to get hung up on the go-slowly approach they are taking with SDV – yet selling the northern tenements was a stroke of genius and has provided the company with a cash buffer to give it so many options.It is clear the market has swayed far more in favour of aussie hardrock producers, and away from brine. And IMO GXY have quietly moved their focus away from SDV and onto expanding the Aus hardrock options via a number of approaches - exploration drilling at Mt Cattlin, taking a significant blocking stake in A40, an eye on Cowan tenements, the LPD partnership to extract lithium from the Mt Cattlin tailings, a downstream converter stake in China to improve margins further.

I think in the next month we will see some large on market Director purchases, followed by a share buyback scheme, then a string of good news events once the new CEO takes the range.
Once the share price rockets north everyone will be looking back and thinking ahhhh,,,, yeah. That should have been obvious.Motley Fool will publish a rare triple down buy alert once it hits $5 claiming it is the best thing sliced bread.
If you want to take a position in a lithium stock, now is the time

Strong STRONG buy. IMO only

Pls DYOR