Hi fellow shareholders in GMM and GXL,
I am a bit curious as to the delay. Due on March 31st but advertised well in advance,one wonders why a mineral in short supply for the next 18 months wasn't paid for so as to secure immediate peace of mind for the remainder of 2016 and as per contractual negotiations at the end of this year, for peace of mind with regards to at least the first six months of 2017.
What strikes me in this delay of at least four parties: GMM, GXL, Mitsubishi Trading Co., and the mainland Chinese representatives (of possibly more than one company) is the outside market forces having a bearing on this contract. For example, Tesla Corp of America launches Tesla 3 on Apr 1 - and suddenly electric cars become mainstream, so other possible buyers (US, Japanese, Korean and European car companies) take sudden interest in this contract (here I am speculative). It could simply be a financing issue having occurred late in March for the 60,00o tonnes by the Chinese Co's (that isn't out of the ordinary). But if you then look at the next contract for 120,000 tonnes, then I guesstimate that other parties might be (have already) contacted the Japanese trading Co. with possible counter offers (all off the books) maybe a bidding war for GMMs GXLs next shipment contract in late 2016.
Hence an alternative reason for the delay beyond a normal precedural business one.
Anyone care to add to this alternative possible qualified reason ?
Cheers
GMM Price at posting:
57.5¢ Sentiment: Buy Disclosure: Held
