NMT vs gxy, page-18

NMT are diversified so if lithium did go out of fashion, they have other projects to help keep their share price stable. Their share in Mt Marion (third biggest lithium deposit in the world) is free carried so no costs involved, and they can sit back and enjoy the income. Mt Marion has a life of mine offtake with the worlds largest lithium producer so no need to worry about trying to find a buyer if lithium supply increases more than demand. They have already locked in the spodumene supply for their Eli process, so no need to panic if lithium demand takes off and there is a shortage of spodumene supply around the world. NMT have plenty of cash in the bank and also pay dividends.
I see an announcement soon in the not to distant future coming out on Barrambie. With the price of iron ore so low and not looking to recover to the highs of 2008 anytime soon, big companies are looking to find something more profitable to mine. NMT will go down the same lines as they have with Mt Marion and sell off equity in Barrambie to someone else to get it up and going further de-risking themselves.

GXY have made me a tonne of money in the past. But now I stay clear of them as I find with nearly 1.8 billion shares on issue (NMT only have approx. 559 million and soon to be less if they ever start their share buy back), it is too risky. They have fallen behind with first shipment now not to December/January. Also there are talks of a CR because they are running out of cash which would add more shares to their total. They are still carrying debt. They have no money to develop their other projects.
There has been talks of some sort of consolidation. 10:1 would put their share price up to around $3.45 (up with the likes of ORE). This would be good for GXY as it would put their total amount of shares on issue back to about 180 million. They would have a lot more room for future CRs to raise cash for their other projects. If they do go ahead with the consolidation, I would look at buying back into them one day. They have also made it into the ASX200 (from close of trading this Friday) which will give them greater exposure from Monday next week.
These are just my views and other people have different views towards these two companies than me so DYOR.