I think a difference after the rights issue will be,
1. The board realises it's highest priority is to keep costs down to stay alive. They will be selling non core assets and watching wasted costs very closely.
2. They have an income from Jiangsu - the first time in it's history that this has happened. It's not rivers of gold but it's something. They are forecasting $25M profit at full production for a year.
3. They are driven to pay down debt.
4. They still have Sal de Vida and one of the worlds most modern Li2CO3 carbonate processing plants. These are class assets and are being overlooked through all the pessimism.
I'm not saying it's a screaming buy - but I think it's worth taking up the rights rather than being diluted to irrelevance and I think it has a future. The debt is the anchor around it's neck - but hopefully we'll hear how they negoitiate the terms and also an asset sale soon to pay it down.
GXY Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
