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fnbig1

752 Posts.

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19/02/19

11:28

Post #: 37482427
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Originally posted by yanlin ↑

Gee, JL has turned hostile towards GXY.
First it was his comment about Mt Cattlin already having its day in the sun and it is the marginal spod producer, then it was on his lithium podcast where he thought that GXY will struggle because he and Chris Berry predict spod will fall to US$500/t, and now this tweet with a picture of a long and winding road to nowhere.
Seriously, JL has got a hard on for GXY at the moment!!!
I wonder what has happened for this "love affair" to sour??
Perhaps he wasn't engaged as a consultant by AT and he's just airing his displeasure???
Either way, it's a pretty big turn around in his opinion of GXY.
My take on the recent negative thoughts about fledgling Li producers and the struggles they face: all the negative issues surrounding NMX, AJM, A40 and the like revolve around debt funding and difficulties with the demands of the lenders. What the pundits have failed to recognise is that AT was emphatic in his desire to not rely on debt funding at all. And, this is the difference that somehow seems to be lost on the critics. GXY does not need to talk to a banker/ financier/ loan shark for funding as they already have available funds to develop SDV.
In fact, the Mt Cattlin operation will have a break even point of circa $300-$350/ t which is still far below the negative forecast (of $500/t) predicted by JL. Yes, that means skinnier margins. But, it is still positive cashflow and it still means GXY will be debt free to develop SDV - especially if they selldown 30% or so to a JV partner.
On this occasion, I have to call-out Joe Lowry as just another industry player peddling his own agenda.

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The best thing for the lithium industry is advances in new technology / quicker and more efficient processing.

So if Joe Lowry "Mr Lithium", really gave a dam about the lithium industry making continuous improvements and moving forward, then he should be supportive of companies like Galaxy that are embracing innovation.

Any statements to the contrary, like the picture of a long and winding road to nowhere, does make me question Joe Lowry's motives...

GXY Price at posting: $1.98 Sentiment: Buy Disclosure: Held
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The best thing for the lithium industry is advances in new...

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