The Chinese Government post the GFC have targeted long term security of resources and investment by Chinese investors in GXY have followed this macro strategy.
Two years ago GXY had to invest in James Bay Quebec as a prerequisite for Chinese investment. ( secure resources and gain access to NAFTA) Just look at the timing of the cap raise then and the James Bay deal.
Earlier this year GX Y bought out Li 1 , again in line with the Chinese Government strategy to secure long term resources.
Had neither of the above deals been done, it is argueable that GXY SP would now be $1 + IMO rather than a poxy 50c.
As GXY gets closer to being profitable, long term retail holders are being diluted out of existance. Australian investors would not be allowed to do this to a Chinese company so why should the Chinese be allowed to do this to an Aussie company? Perhaps we are asleep with a mug Federal Government!
Perhaps if we are lucky, the FIRB will regard Lithium similar to Rare Earths and knock back any Chinese takeover ( ala Lynas).
Just look at the Board and you'll see why a Rockwood or any other western takeover would be ridiculous. Not alone are there an equal number of Chinese on the board to Australians, they have lined up a second row of subs in case a Chinese Director misses a plane for a meeting.
Cheers Moorookamick
GXY Price at posting:
17.1¢ Sentiment: Buy Disclosure: Held
