Ann: Trading Halt-GXY.AX, page-360

Hey Aircon,

Ok, here's the problem as I see it... GXY is worth too much, and it won't be tolerated:-

What we are seeing here is just the foreplay / rationalisation of GMM/GXY.

1. GXY staffing. How many staff have they hired recently internally.. If you expecting, or making yourself into an attractive takeover target, you don't want staffing issues, hence don't hire staff...

2. GXY dilution, it's going to happen, despite what is being told to you. We've already let ourselves be diluted into GMM by offering them the deal of the century. 50% of two great resources for $56M or so? It's a ridiculous bargain. $56M is around 1 year of Cattlin production for GMM... rest is pure profit. It was given away, and the reasons are obvious if you go looking... This is fine if you owned split GMM / GXY: 50/50 for example. I bet I know who owns both...

What does GMM bring to the table? Some gold tenements, and a load of speculative share pricing, albiet with hard-rock mining assets all based around GXY? We are not really buying much value with GMM so we are being diluted sideways into them, by offering scrip etc. to buy their shareholders out. As new GXY holders, those GMM people WILL get SdV value, more dilution! The reality is we need GMM for the hard-rock mining, GXY cannot do it alone, and we are paying a huge premium for their services.

In my opinion, GXY will _never_ be allowed to trade at $2.50 a share with 1.26B shares on issue...

http://quotes.wsj.com/AU/XASX/GXY

Hence all the share price manipulation, it makes sense to spend a few million now, manipulating and selling down GXY, so you can acquire it later a hell of a lot cheaper. FMC
Tianqi, or SQM or one of the big boys will just come in here in 12 months time or so, and offer the punters 60-80c a share and they'll just take it... the number of short-termers always will outnumber the LT holders. It will never be allowed to grow to $2.50 a share, and SdV will be developed/owned ultimately by the big boys.

At that point (if not scrip) you are pushed out of your shareholding during a TO, if you haven't held it 12 months you get hit for full capital gains, your options then are to buy another company or ORE / PLS / FMC themselves etc. Ultimately you lose, and are pushed out at 60-80c and never see $2.50.

Am I wrong? I hope to be proved wrong.

AA DYOR.