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Letter to Greens Senator Peter Whish-Wilson., page-8

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col69

15,657 Posts.

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18/09/19

07:22

Post #: 40459952
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Originally posted by ljcamp ↑

To all longs invested in Galaxy Resources and in fact any other Lithium stock for that matter. What is transpiring is not ok. You have a voice and I urge you all to use it. Good luck everyone.

Hi Peter,

I have just finished reading an article published on The Age website titled "Greens call for scrutiny of possible 'manipulation' in $1.5bn China milk bid".

Firstly, congratulations on tackling this issue head on.

This article has really resonated with me as I am an investor in Galaxy Resources (GXY), who I believe is directly targeted in the same way the Balamys has been. My greatest fear is that the Chinese will attempt to take over Galaxy with a low ball hostile take over. The past 18 months has seen Galaxies share price fall from $4.54 to $1.15 despite the company adding US$280m to the balance sheet via the sale of a Argentinian tenement to South Koreas POSCO. Galaxy has been the target of heavy shorting for the past 18 months.

The tactics stated in the age article are of a very similar manipulative nature to what is being experienced within the Lithium sector."The letter stressed that that Bellamy's had not been able to get approval from Chinese regulators to sell its organic infant formula in China retail outlets after applying for permission in 2017."

"The delay has stymied Bellamy's ambitions in China and the period has been challenging for the company, with its profit almost halving to $21.7 million in the last year."

With regards to the lithium sector which will be a crucial industry for the Australian economy moving forward (Electric Vehicles and Battery Storage), the Chinese approx 2 years ago set out to sign up junior lithium producers with binding off take agreements to secure long term supply. Many of these contracts had pricing floors and a minimum gross tonnage to be supplied. The sector is now seeing many of these binding agreements worthless and sale price of Spodumene (Hard Rock lithium) sold well below contract pricing. It is widely believed that the Chinese convertors have stalled to create a false over supply situation, forcing the prices lower and the market capitalisation of related companies plummeting.

Contemporary Amperex Technology CATL (Chinese) has just taken a large stake in Pilbra Minerals PLS at the bottom of the cycle, suggesting they have little concerns in relation to the future of the lithium sector. Our own Wesfarmers (WES) is days away from completing the take over of Kidman Resources (KDR) at a total consideration of Au$774m.

I would enjoy the opportunity to discuss this topic further as I feel so strongly about the criminality that is taking place on the ASX. I am a qualified financial planner and have worked in the industry for the past decade. The integrity of the ASX is at breaking point and my voice is my only tool to protect my family from what is eventuating in the lithium sector.

I have reported, what I consider to be misconduct to the lead regulator in ASIC. I received an emailing requesting more evidence for the case to be investigated or "my concerns be considered", to which I subsequently supplied a number of mobile phone screen shots. I was informed this was sufficient to warrant further investigation, with evidence dating back to March 2018. I received a phone call with what I consider a grossly inadequate response for what I consider to be the "watch dog" of the financial markets.

I look forward to hearing from you and again thank you for bring this MAJOR issue to the treasurers attention.

Kind Regards,

ASB

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Great letter @ljcamp ... great effort. ... I am going to draft my own letter today to Melb Greens Senator ... I have some screen shots of bids / orders but happy for you or others to email me more info if you have it (email address in signature below) to support my letter ... I think the more people that write to their local member the more traction this will get ... IMO people should get cracking !

GXY Price at posting: $1.15 Sentiment: Buy Disclosure: Held
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