GXY emergency offer for Alita?, page-335

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27/08/19

18:38

Post #: 40180680
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Originally posted by setfire2thehive: ↑

IMO if they thought A40 could be made profitable why not take 51% stake - whilst sentiment is at it's worst.
The notion other people are painting that if A40 don't service the loan they can buy A40 for a song. but imo if A40 can't be profitable - then it's a waste of money owning it anyways. See MIN regarding Wodgina. Stating top of class but mothballing project. (saving face i suspect)

I think GXY's expertise in producing are much better than A40. Hopefully there's some synergy and collaboration moving forward, hence why i would have preferred them to take material control. As previous stated i think GXY will be one of the only ones that comes out the otherside - but IMO could have been a lot more strategic in the last 3 years and better positioning. Them having cash backing is one of the factors which i really like above them currently. (Cognisant this isn't a cash payment)

If they're looking long term bald hill doesn't have an overly long mine life.
IMO should have grabbed 51% of A40 (not a holder) if they think it's a winner in the next 2-3 years.
Or
if looking long term IMO they would have been better buying into a hard rock producer with better quality and longer mine life LTR (not a holder), AVZ (holder), MLL (not a holder).

Probably need to revisit this decision in 12-24months to understand if it was the right call or not.

*Disclosure bullish on lithium long term, held GXY years ago may look to make an entry when the overall market improves.

SF2TH

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You can buy their assets and sit on them until 2024 when Lithium demand has exploded. This is a very strong medium-long play imo.

GXY Price at posting: $1.17 Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

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