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$5.28 galaxy resources limited

@Thesi You're welcome! But you knew this some time ago, because...

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number61

1,525 Posts.

57

07/02/17

13:02

Post #: 22425695
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Originally posted by Thesi ↑

Good morning everyone,

Well I don't know how to say this however I am guessing the title of this thread gives away the feeling I have after sleeping on it.

Whilst we still need to wait and see what the company has planned under this capital raising and also whilst I am very pleased with the team that has been assembled to pursue Sal De Vida I cannot help but feel a little concerned.

If I take you all back to when Orocobre and Galaxy were a two horse race we too had the same number of shares in the market as them and could have had a share price much higher than them right now had circumstances been different.

The feeling I get making that comparison is disappointing however I always felt that I was sitting on the better horse though after all the dilution and in hindsight it would have been better to be in Orocobre doing a shareprice comparison.

Over the years there has been a number of capital raisings made by Galaxy to the point that many of the long term holders like myself become a little concerned whenever the word is brought up and it also makes us fearful moving into other stocks that we can see will need a number of them simply to survive.

Going back to last year's AGM there were two things that were reported to me.

One was that Anthony indicated no more capital raisings, however we have seen more shares being issued over the past year via various methods that avoided those two words being used. - And now here we are.. With a presentation and more details on Sal De Vida surrounding it.

Another thing that was reported to me was that of Martin mentioning a share consolidation.

If I put these two together could this now be the final tilt before we reach 2 billion shares and then consolidate down to 1 billion?

Either way people that I have spoken to in the past 20 or so hours about it are concerned and disappointed.

"Galaxy is up to its old tricks again!" is one thing that was said to me. - It is difficult to dissuade any of those that are aware of the company history.

At the moment the company is up around the 1.8 billion shares mark and from that we have a mine that has just commenced production (again) with the first ship only having arrived to the customer in the past few weeks.

Sal De Vida and James Bay came to Galaxy by way of a merger with Lithium One. - There was value to be had by combining our shares with theirs.

Mt Cattlin should have been running a long time ago, and should have still been running during the sale of Jiangsu but it wasn't. - All the previous capital raisings paid for it to be running along with the price of Jiangsu.

My perspective was that Sal De Vida could be constructed with the revenue from Mt Cattlin or James Bay coming online first. - But it isn't looking like it will be that way at all.

Soon we will find out if that pie we a hold in will be diluted and allow us ALL to reach into our pockets to maintain our same share holding in the company or if it will be provided only to a select few and diluting those that do not get offered that opportunity including the retail investors like most of you that contribute to this forum.

If the later is what is being planned I really hope to company reconsidered that view. Further, I would hope that they retract the plan all together.

Simply, I feel it is not doing the right thing and I find it difficult to support.

The company by way of Anthony had indicated in the past that they had been in discussion with financial institutions in Argentina and also China to secure funding and develop Sal De Vida of which Mt Cattlin could contribute to those costs. - All the announcements yesterday are indicating to me that the reason for the CR is to pursue Sal De Vida and that the previous path will not be taken.

It is great to believe that there is no plans now to JV at Sal De Vida and maintain 100% ownership however I just question if diluting everyone's holding again and being back to old tricks is the way to do it.

Is Galaxy up to their old tricks?
Is a capital raising necessary?

I am maintaining an open mind and am using this forum as a way to challenge myself with the feedback of others.

I am shifting my sentiment to none for now.

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@Thesi You're welcome!

But you knew this some time ago, because we discussed it playing out exactly this way.

#61

GXY Price at posting: 59.5¢ Sentiment: Sell Disclosure: Not Held
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