Australia's largest stock trading and investment forum Australia's #1 stock forum

A40

Click for more information

0.00%

8.2¢ alita resources limited

GXY desperate for Alita, page-46

First 46 Last

Share
Profile

Follow
GARETH78

8,349 Posts.

2970

07/09/19

09:35

Post #: 40347261
Share

Originally posted by Heeman: ↑

Ruined the party for gxy you meant ? ALITA bod called VA SIMPLY to give the company more time to sort out the best way to pay the loan back for imo very dubious reasons (the notice of default reasons may be a case for lawyers to examine any commercial sabotage) after TRIBECA demanded that it was paid paid within days. It’s all a stitch up if you ask me to give GXY it’s chance to get BH in a liquidation scenario which now with VA &RM appointment is not gonna happen unless we can’t sell the stockpile and raise $ from that and raise the $5-$10m shortfall (my estimate) to have the loan fully paid off. Getting all the ducks in a row to pay the $46m in a short space of time appeared problematic for ALITA hence the VA appointment. But it’s now forced a much simpler scenario where yes ALITA is not in control but it’s given TIME for the VA and RM where they HAVE TO :
*assess the situation,
*stem outflows via C&M,
*count all pennies,
*count all the stockpile,
*sell the stockpile for whatever price the can get,
*add everything all up,
*then proceed to the “ALITA consortium” with a clear picture of what $ amount is required to be raised.

In the background and maybe forgotten by most here, we still have Korean and Japanese offtakers wanting our spodumene so will potentially have a deal with them to come. I’m thinking low interest debt (see recent Toyota debt deal with ORE) or something else ie equity or prepayment. Anyways I’m not counting chickens before they hatch anymore.

Woweee it’s still mind blowing we are in this situation....I guarantee you Martin Rowley chairman of GXY never thought Mark Calderwood would have the guts to call in VA which means closing the plant down / putting his tenure at risk etc etc.

But here we are.

Will be an interesting creditors meeting on Tuesday to see who turns up and we get an idea of what the exact $ owed is. If Burwill turn up I will in turn forecast a court case against them for multiple breach of contracts.

One thing most holders and non holders alike will accept is that there will be a recapitalisation ie a raise. hopefully including us retail shareholders. imo it will be at a fairly steep discount as that’s just what happens unless demand for the opportunity to participate is such that a smaller discount is given. So don’t get upset if you see 5c as a raise amount as I’m preparing myself for this and getting my own ducks in a row to participate to 1) help ALITA stay independent -and 2) hopefully make some money as I actually quite the idea (think LTR etc) of being a non producer with a plan to upgrade resource to 50-100mt , no debt, an 18mo plant in C&M, no offtakes , and just wait out the market funk and hysterics. I dunno what but it’s worth something isn’t it ?

While I’m gassbagging along, one last thought on the leadership and any changes that may occur - I think most would agree that a change is likely. But who would step up ....how would Anthony Tse sound ? It’s a bit like déjà vu with being in a similar situation with GXY when he was appointed there to turn it around from its mess a few years back. Prob a long shot but I’m just putting it out there for discussion.

Have a great day guys.

Expand

Anthony Tse?

He is still an Executive Director of GXY. Holds over 6m GXY shares.

Talk about letting the Fox in the hen house!

A40 Price at posting: 8.2¢ Sentiment: None Disclosure: Not Held
4 Upvote

0 Great analysis

Reply

Top Stories

RAG

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

CXU

Cauldron Energy reports "excellent" uranium assays in latest drill run

SHN

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

NWH

NRW Holdings inks $109M deal with BHP for works at Jimblebar

TIG

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

A3D

Defence MOU for propulsion systems pushes Aurora Lab shares higher

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

IMA

Issues emerging as Australian companies tackle critical minerals challenge

There are more pages in this discussion • 38 more messages in this thread...

First 46 Last

Add A40 (ASX) to my watchlist