Don't think he has one. Maybe he just wants to pick up cheap stock.
Compared to many other junior explorers Galaxy actually has some resources and is a good chance of having cash flow within a few years of listing. Look at Giralia - they have raised over $40-$50m in its existence, spun out 4 companies and have never (itself or it's spin-offs) developed anything or looked like developing anything. If you're a speculator looking for fast returns - get on the U stocks. If you're an investor - get on GXY.
In the end the value of all these companies come down to expected future cash flow. In the event of any downturn later this year (when commodities are expected to start declining) or a sharper downturn in the event of some shock - the prospect of real cash flow talks and is a much better protector of value than some 'uranium prospect in a state which doesn't allow you to mine it' for example.
All factors point to the Cattlin deposit being economic provided a offtake agreement can be locked in soon. Multi-commodity deposit - Tantalum and Lithium with possible tin and niobium credits. Good tonnages - of at least 20-30mt. Good grades with an in-ground value of well over $100 per tonne. Very low strip ratio. Easy metallurgy via simple gravity separation leading to a low cost operation and construction costs. Located in the south coast where there is a residential workforce (i.e. no expensive fly-in, fly-out). Located mostly on pastoral land - ie no clearing and therefore less approvals and a more speedy construction process. A feasibility was conducted on a smaller resource of about 1.5 to 2mt back in the 90's and said it was commercial - based on the tantalum only.
Compare this to many other companies. It's one thing to have a resource - its another to have one that is 'likely' to be developed. That is one criteria that most investors forget.
GXY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
