great news for sure that the sale is complete, cash in the bank is a great asset - and I think the company needs it.
a few people repeatedly ask why the sp has been dropping - imho, it has been following the price decline of spodumene and the softening market for that commodity. what many market punters don't know (or do but don't want to admit) is that the capacity to process spodumene in china is far below the supply, and that prices are therefore falling - i have heard $500/t predicted for the near/medium term. If spod hits $500/t where does that leave gxy? how is our wonderful cash surplus fairing at that price point?
perhaps now is the time for the board to be on the acquisition trail and pick up another near term producing asset with the cash pile that have - not spod in canada (freight cost prohibitive), nothing spod in wa just yet, maybe a near term producer or underfunded current producer of carbonate?
given the softness in the spod price, and the weak outlook i'm out during this rally, but that is my analysis and investment decision - certainly not advice.
GXY Price at posting:
$2.22 Sentiment: Sell Disclosure: Held
