Ann: Administrators commence recapitalisation process, page-147

First 147 Last

Share
Profile

Follow
Rob826

3,686 Posts.

1421

14/10/19

09:55

Post #: 40864021
Share

Originally posted by Rick19: ↑

Yes mate, i can see why it is important to them.

Surely even the GXY holders would recognise that with Mt. Cattlin's dwindling mine life and SDV and JB seemingly a pipe dream at this stage, Bald Hill is their best bet.

As for competition, im expecting plenty too. Read a few posts suggesting Jiangte is the wildcard. Im of the opinion that Jiangte has a big role to play in all of this but to me they are not the wildcard. To me, Haitong (the guys that took over Burwill's 89 million shares) are the wildcard.

I say this for no other reason other than i have dealt with the chinese for much of my 20 year working life. I have come not only to learn but to understand their psyche well.
In their eyes, they are not winning unless someone else is losing. When situation is reversed, they take it personally and it becomes a matter of honour and pride. Generally, They will throw as much money at the situation as is needed should their be even the most remote chance of retrieving their original investment.

Sometimes its throwing good money after bad, sometimes it isnt.

Time will tell

Expand

While the Haitong angle is interesting, is it even possible for them (or Jiangte) for that matter to T/O A40 without a partner? Wouldn’t any investment greater than 50% require FIRB approval?

For these reasons I see GXY coming out of this with at least 50% ownership. Given the recent listing of lithium as a ‘strategic resource’ by the US, I can’t see FIRB approval been granted for a Chinese company to take over an Australian company that has been driven into the ground as a result of Chinese actions.

A40 Price at posting: 8.2¢ Sentiment: None Disclosure: Not Held
13 Upvote

1 Great analysis

Reply