takeover comming?, page-8

Only time will tell if "doing business Chinese style" is of more benefit to Aussie shareholders than our transparent way of doing business.

If GXY does not get a premium price for Li Carbonate as per grade, then one would have to seriously question the benefit of doing business "Chinese style"

It is fine, IMO, for the Chinese to do business their style with their money but not with mine.

I was very concerned to see spodumene transferred from Mt Catlin a year ago at
half the cost of production ( about $240/ton) This was presumably done to realise more profit in China. The Chinese corporate tax rate is 25% while ours is 30% at present.
But due to Aussie accrued tax input credits accumulated during the building of Mt Catlin, it is highly unlikely thatGXY would pay any Aussie corporate tax for at least 2 years even if GXY had exported Mt Catlin spodumene at cost + 10% margin (about $550/ton + 10% ) One has to ask why the transfer cost was half that!

I note with interest that GXY are reporting revenue including VAT; I assume that
they are now making a profit if VAT is a consideration. If VAT inputs were
greater than VAT outputs, then I assume no VAT would be paid. Furthermore,
if the export offtake agreements were being met, that no VAT would be levied on the export share of production ( 5K tons out of 17K tons total p/a ). If Chinese VAT is levied on GXY export of Li Carbonate from China, then one has to seriously ask why our factory is located in China?

This company needs to be more specific in its co anns so that this price sensitive
info is available to the market.

I appreciate that the Chinese do business differently, but so long as GXY is listed on the ASX it has to conform to continuous disclosure of price sensitive information and conduct business as per our ATO requirements and not via
"the Chinese way of doing business"

I note with interest that the recent $3.7 mil sales of li carbonate is lower/ton than the published chart's lower price was. We got $6177/ton which is under battery grade lower price limit and this revenue includes Chinese VAT to boot!.

With kind regards
Moorookamick