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$5.28 galaxy resources limited

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Facthunter

11,989 Posts.

815

18/09/18

15:16

Post #: 35674607
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Originally posted by asb83 ↑

Finally people are waking up to just how lucrative shorting GXY can be. Shorting GXY is like taking candy from a baby - the babies are GXY holders jumping up and down complaining

There are multiple reasons why GXY is being shorted. Management is only one of those reasons. The more compelling reasons are that MC is a pip squeak resource relative to its peers and at the top-end of the cost curve. So if there is downside to the price of lithium, GXY will feel the pinch first.

Another reason is SDV. They are years away from producing. As has been seen with ORE, there are a lot of hurdles to jump between now and producing. They are expecting to be producing by 2021. That assumes everything goes to plan. I'd probably put the reality at closer to 2022-23. So you've still got a good 3 FYs before anything hits the balance sheet Holding GXY is dead money at the moment while it develops SDV.

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I can sell you a nice parcel @ $6.50

GXY Price at posting: $2.40 Sentiment: None Disclosure: Held
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