The company doesn't have $450m in the bank.
The last quarterly shows that they are nowhere near $100m free cash-flow per year. In fact, cash in the bank went backwards last quarter by quite a lot.
The reason why GXY is highly shorted is multi-faceted:
- Poor management - AT treating the market like you would treat a turd - listen to the latest results announcement
- Poor communication
- Not reliable - money for SDV sale was supposed to be in the bank for SDV by end of October; partnership with SDV by end of December, etc.
- Small revenue stream for the foreseeable future - Revenue for the next 5+ years is reliant on a tiny little resource that is struggling for relevance as is increasingly becoming evident with every quarterly report
- Execution risk with SDV - already delayed by 12 months and they have barely begun; new methods for processing lithium, etc.
- Lithium pricing "notably" down on 2018 pricing, despite EV uptake increasing and no oversupply or notable increase in battery grade lithium projects - heaven forbid there was an oversupply - GXY would be cactus!
Chart, page-11090
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