This is best news ever! Tan held no significant shares in GXY. His decisions were not in the interest of preserving cash or shareholder value. Under his rule GXY burned through cash faster than a hydrogen bomb. Where did all the money go? This has contributed to the current cash flow difficulties.
With the AUD down, it is much cheaper producing spodumene from Mt Catlin rather than buying it from China's Talison mine (in US dollars). Where would the company be if Tan simply decided to allow Mt Catlin to sell some of its product to the market to increase revenue and maintain operations rather deciding to shut it down and contribute to Talison's profits?
The resignation is unexplained and at an unusual time. Perhaps it became realized that he was not acting in the interest of shareholders and the company and he had to go?
GXY Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
