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01/12/19

00:20

Post #: 41730833
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Originally posted by findinggems: ↑

From what I can gather why A40 holders are angry about GXY is the following:

1) An AFR article appeared after GXY bought the debt from Tribeca with the words "carved up", and from their point of view, it appeared that Simon Hay said those words ( What really happened was that it was not Simon Hay who said those words, but AFR ).

2) GXY did not give an extension to A40 ( What really happened was GXY did give an extension after taking the debt from Tribeca and discussions were held with A40, but A40 decided to go to VA before any agreement were made ).

3) GXY did not give a fair offer to A40 ( We do not know what offer did GXY made to A40 just after taking the debt from Tribeca, as no public record exist, so we can only speculate and guess. A40 holders "proof" of unfair offer was the fact that A40 went to VA ).

4) They ( A40 holders ) see GXY as trying to "steal" A40 for a song, when GXY had been the one pouring money to A40, participating in CR when A40 needed them, hand in cap.

So from all of the above, their reasoning is that, "we lost money because of GXY, so now you go loose money just like us and burn like us."

From GXY holder's point of view:

A) GXY poured money into A40, participated in CR, helping A40 to continue to operate .. but instead pissed on the money, raised their salaries, and raised their retrenchment pays, change name, change letter head, stationaries, change website, etc ...From my own point of view, the fact that A40 raised their retrenchment pays meant that they ( or MC ) have planned their exit ( or MC's exit ) or knew this was going to happen after the CR. Thus, instead of using the money that GXY and Jiangte put into A40 into proper use, they used it for other purpose than what was probably agreed with GXY and Jiangte ( I would have assumed that GXY and Jiangte have had some talks with A40 on the side before participating in the CR of that size ).

B) GXY was "fooled" ( for lack of a better word ) by A40, just like Jiangte and A40 holders were "fooled" by A40 ( Yet A40 holders only blame GXY all the time, not themselves, not A40 BOD ). Sort of like helping a friend in need by providing them with financial assistance ( equity and loan ), but that friend turns at you and is angry at you saying .. "This is not enough, what you are giving me is not fair, I want more!!!"

Am I missing something else ?

Expand

Actually A40 as a producing asset had potential. Unfortunately they had a high strip ratio early which was being lowered over time that would have made the mine quite profitable if prices had not plummeted. So high prices received when they started up with a high strip then low prices as the strip ration declined. They also had a stockpile of product which they couldn't sell. Bit unlucky really.

A40 holders are angry because it appears that GXY has engineered a poor outcome for A40 then planned to swoop in and pay peanuts. They could have made a takeover offer at any time while trading. Looks like they have been gazumped by the Chinese who also like playing games and seem to have won this one.

GXY Price at posting: 92.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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