"Galaxy could be readying to make a play for struggling Alita," - Let's Just Wait & See Shall We?, page-8

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21/08/19

10:57

Post #: 40072327
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Originally posted by Henry Walton ↑

It makes a ton of sense for GXY to make a play.

We have done all the pre-stripping - expensive
We have built all the camps - expensive
We have bought all the parts and engineered the fines circuit - expensive
We have built all the roads - expensive
We have built the plant - expensive
We have commissioned the plant - expensive
We have 30,000m of drilling nearly done - expensive

All the hard stuff is done, we just needed the carbonate market to not sheet the bed which unfortunately it did.

The replacement value of our operation, if you want to buy something from scratch like LTR you need to pay $400million for that company and then atleast another $350million to get a fully commissioned DMS + flotation operation they would need going.

So unless you go explore and find a deposit anywhere else you looking at $700million to be spitting spod like we are and we are sitting at a $120mill Mcap, so dam straight if they are forward-thinking believers in that the lithium market will rebalance, they should be looking at it.

Throw on top of that the synergy aspect well discussed we can produce 6.5%, they produce sub 6% so immediate value add for them through blending, immediate value add by them running both operations through one office, immediate value add for them through getting hold of our downstream J/V plans.

Alot of value adds for them.

But most of all the most important thing they have is cash, they have the cash to immediately drill out Peg 3 and by mid next year make this a 100Mt resource, thats a game-changer.

They have the cash to immediately implement the fines today to see $150/t saving regardless of if buyers are ready for it or not, they can afford to wait till 2020 for buyers to catch up.

They have the cash to finish the tantalum circuit today and fully realize the very important credit there.

The thought of GXY buying us right now makes me want to puke they are stealing a billion-dollar company in a couple of years from now for pennies, but at this point it is what it is, the market's just not there, if they offered 20cents script I would probably take it and become a GXY baggie cause I know they getting a steal.

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Hi Henry, 20c would seem a little low ball figure, do you think the other large holders would be happy with that?

Also would the Singapore holders be happy if it was a scrip offer, like GXY isn't listed on the SGX as far as I am aware. So they may chose to vote against any such offer en massse.

Amazing how things change isn't it.

All the best

A40 Price at posting: 8.2¢ Sentiment: None Disclosure: Held
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"Galaxy could be readying to make a play for struggling Alita," - Let's Just Wait & See Shall We?, page-8

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