what are the chances of a capital raising?, page-48

First 48 Last

Share
Profile

Follow
Thesi

8,740 Posts.

2622

15/02/20

07:37

Post #: 42947941
Share

Originally posted by Rob826 ↑

Hi@Sjlasx

No, I was just pointing out the ambiguity in SH's language regarding the possibility of a CR. Some have taken SH's words as complete assurance of no CR in the future. I was specifically pointing out SH's use of the qualifier "no, not at this stage".

What I posted was SH's direct response to a question from a private shareholder from the strategy briefing day transcript. I didn't write it, it's a screenshot from the transcript on the GXY website. I actually think the screenshot of what you posted is indicative of how GXY uses semantics and are far too ambiguous with their language. At the top, it says fully funded. Directly below it, it states that stage 1 is expected to be able to be funded from the balance sheet after a partial sell down. Which one is it? Here's another excerpt from the briefing day transcript:

And from the last quarterly transcript:

And let's not forget the quarterly report:

So we've gone from fully funded, sole-funded (or however else they want to phrase it) to talking about being able to substantially fund it and acknowledging that a funding gap exists. At the strategy briefing day, SH was certain that it would be funded from the balance sheet and/or a partial sell down of the project. Then at the quarterly, we're talking funding gaps that he thinks we'll be able to manage. Forgive me if I don't put much faith in his lacklustre assertion of "no CR on the horizon, certainly not at this stage".

All that being said, I don't think a CR is on the horizon for the next 18-24 months. But without a JV partner, I think a CR is a near certainty in the 2-4 year timeframe. I can't see any other way that they would fund stage 2, which includes the purification plant, without an enormous turnaround in lithium chemical pricing.

Expand

I agree @Rob826.

The company fails to deliver a consistent message which confuses the market.

Simon Hay's message is at odds with the two presentations.

The right hand doesn't know what the left hand is doing.

GXY Price at posting: $1.08 Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

CKA

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

BUX

Buxton projects new graphite province discovery at WA Narryer play

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

NTI

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

SLS

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

WCN

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

BCI

BCI reaches close of funding facility for salt-first part of Mardie project

There are more pages in this discussion • 41 more messages in this thread...

First 48 Last

Add GXY (ASX) to my watchlist

what are the chances of a capital raising?, page-48

Top Stories

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Buxton projects new graphite province discovery at WA Narryer play

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

BCI reaches close of funding facility for salt-first part of Mardie project

Featured News