Near-term, Mt Caitlin - which shut down previously when the dollar rose above 80 cents - will be the main source of cash flow.
And as Galaxy's recent corporate presentation revealed, the NPV of Mt Caitlin (50% share) underpins only half of the current market cap.
Sal da Vida is where the money is, but they are still talking about finding joint venture partners. Why is it taking so long if its such a spectacular resource?
I am wondering whether the recent corporate announcement is intended to underpin a capital raising? That they might be thinking of going it alone (at least in the early phases) with Sal da Vida? Might not be such a bad strategy to progress this languishing asset, and take the bull by the horns with 100% ownership?
I reckon they could raise a good chunk of cash at a good rate in the current climate. A $50 million raising would only be a 20% dilution at current market cap.
GXY Price at posting:
25.0¢ Sentiment: Sell Disclosure: Not Held
