This is only my view. The northern tenement will be sold, be it with posco or someone else. GXY cannot operate a 300 square km site. Posco has bought into pls. a deal with Gxy make better sense. Spending 280m is effectively setting up a mine and a share of the lithium market. In the process they get a free proven tenement. Once GXY build Sdv, posco gets access to the infracture (this is the synergy) can buy from gxy or produce their own for the Korean car market, be independent and competitive against china.
Mitsubishi buying a stake is no different to the posco deal or the toyota (ore). This ensure Mits/niss/ren have guarantee supply. They can produce their own batteries, since the sale of their battery arm with china deal fell through. Like the posco deal, this protects the Japanese car Market. The paper work and shares can be transfered as required.
Little boy johnny MS has been betting against the house (gxy) and losing. Mommy Mitsi buys a stake in gxy so johny doesn't lose. Johnny borrow mommy's shares and do what he has always done. Business is successful when the competition find it hard. Is Johnny Ms working for a Texas oil barron or a chemical/battery maker in Beijing. Johnny ms is under client instruction.
In the end its in the interest of the share holders in china, Korea, Japan or NY(ausbil) that gxy succeed. The shorting exist because they all want in. Join the crowd or join the rest as lithium will only get bigger. Who ever last longest in gxy seats win. You are not buying shares but jocking for a position against the big boys.
GXY Price at posting:
$3.17 Sentiment: Buy Disclosure: Held
