The swift change in GXY position is clearly outlined in that conference call transcript.
It went from
"carve up" comments in the AFR + "
So that was how we started. Those requirements included a further standstill on the debt facility for another week to allow Galaxy to work with Alita to examine the business in detailand the options that were open to us. Without hearing back from Alita, the Alita board then called in the voluntary administrators to protect their interest and then appointed KPMG as receivers and managers yesterday.to
"And will commence working with the receiving manager and the
administrator to examine
all the options that are open to us. - "We expect that it'll take a
number of weeks before we have a clear picture of the course of action."
I have no doubt, GXY will get their $40M back in the form of a nice cheque from the administrators. But they are no longer calling the shots over Alita's assets any more. That much is clear.
This from the Administrators on the very same day they were appointed -
View attachment 1716877A very well researched comment for an "accountant" who just walked in the A40 offices that very same day. No doubt A40 had been speaking to KordaMentha well before then - most likely when Tribaca started playing up with the default notice shenanigans. So it clearly wasn't a hastiy decision to go in VA by the A40 board during that 24 hours.
I believe the Administrations will go to
"all" shareholders to raise the $40M + working capital - put the plant on care and maintenance and begin trading again as an explorer.
If GXY wants to place a bid for the assets then they will have to compete with other third parties now who will also be able to see the details of the plant and operations.
The other option, of course, is to continue mining operations while the VA is in control. A40 was close to signing up those Japanese and Koren off-takers. I suspect that was another reason why GXY moved in aggressively - to stop that from happening to their own advantage.
Mining operations, therefore, can continue but it will be a price that the VA will set so that operations are profitable. That is unlikely to be at the current market prices so care and maintenance option it will be.
Haplo
