Put SDV on hold and spend the cash on something else?, page-3

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29/01/19

18:04

Post #: 37255160
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Originally posted by Pistol007: ↑

Clearly we are all disappointed by the share price performance of GXY, but to me its down like every other lithium stock and for the simple reason that the pricing is down at least 30% from the highs of last year for Spod.

I think we have to face facts that we got pricing wrong, we all believed there wasn't going to be an oversupply issue that MS suggested (which we all got right), but the prices have still come off as if there was. If this is only temporary then prices should start going up in the 2nd half of 2019 and the share prices will start to recover, but I don't see any hope until this happens.

Assuming we get the Posco cash soon, we will be only of the only ASX companies with major cash, personally baring a good deal on SDV, I don't see the point of spending the cash going it alone while Lithium prices are down.

I think we could get better bang for buck buying something else that is built and generating cash. A lot of cash was raised at double the current share prices to build plants, wouldn't we be getting something much cheaper by buying one of those? or just buy back our own stock and double down on what we already got.

We can always come back to SDV when Lithium prices recover, at that point our share price will be inflated and we can raise capital then and borrow a bit to get it down.

Just some thoughts, wonder what everyone else thinks.

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"We can always come back to SDV when Lithium prices recover"

It's not a light switch. It will take several years to get to production. Then time for ramp-up.

If we get going now, we'll be producing to coincide with the steepening S-curve of demand, as the masses shift to EVs and the gigafactories can't get enough Li as they scramble to meet demand.
It will be quite frantic in 5 years from now imo. The fun hasn't started yet!

GXY Price at posting: $1.98 Sentiment: Buy Disclosure: Held
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Put SDV on hold and spend the cash on something else?, page-3

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