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$3.51 galaxy resources limited

willgalanteYou ask "WHERE ARE NEGOTIATIONS AT NOW?' Good...

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Metalduster

5,483 Posts.

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22/03/19

10:57

Post #: 37850198
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Originally posted by willgalante: ↑

I have not sold any of my GXY shares and have topped up (a little) during the last 6 months. I believe the company is a sound investment based on fundamentals.My present sentiment is to hold but I will not be buying more in the foreseeable future.My patience is wearing thin.
It pays to be realistic,even sceptical, in evaluating your investment on an ongoing basis.
Fundamentals are one thing,but the real determinant of SP is market sentiment. Any tradeable commodity is worth what the market will pay--no more, no less. The sentiment towards this company is not positive. It is at best guarded and that will continue until there is good news. Not just the occasional announcement,but sustained at regular intervals.Selling the furniture that is surplus to requirements to give the bank account a one off hit is not a sustainable business plan.
ON SHORTERS: I accept that there have been attempts to manipulate the share price, probably mostly by shorters. One only has to look at course of sales figures, correlated to the level of short positions to form that view.But I do not accept that shorting is the only, or even principal, reason for the languishing SP. I see shorters much like weeds.They colonise vacant fields.Vacant iin this analogy means vacant of positive sentiment. Of course, once the weeds get a hold, getting growth of quality feed grass gets harder, weed growth continues and increases and so on.Until sentiment shifts this will be the pattern here.The board and management do in my view have a responsibility to try to redress the situation. Have they done enough? In my opinion , no.
ON SENTIMENT:The market is notoriously: 1.Risk averse 2,Spooked by uncertainty.When the likelihood of a good deal is talked up, and then followed by a long period of silence, how could that not give rise to uncertainty and concern.
WHERE ARE NEGOTIATIONS AT NOW? The thrust of comments from GXY devotees on this site is that the company is right to (quietly) play the potential partners off against each other to get the best deal. We were told there was a long list of offers which the company was whittling down with the guidance of J P Morgan to extract the best deal. Suitors will only hang around hoping to get the lady's hand (or such other parts as she may decide to bestow) for so long.Are offers still there? Were there ever actually offers on the table? In general terms--commercial confidence must be respected--what is the company's philosophy as to what it is looking to achieve going forward which will frame the negotiations? Why would that need to be kept secret?It could hardly be the case after all this time that the company has not documented and made known within the negotiations what its medium to long term business plan is and, it follows, what sort of arrangement or agreement would have to underpin the discussions.What is the plan for SDV for example?.If the company is looking to get inspiration from the offerors, that would be of concern. One would hope and expect that the company has clear objectives and any "offers" are to be tested against those objectives.
Right now, I am far from clear as to what are the company's short term, medium term and long term targets, and how it hopes to achieve them

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willgalante
You ask "WHERE ARE NEGOTIATIONS AT NOW?' Good question but unanswerable.

The Company started with around 40 interested parties and it was narrowed down to several. imo
But then GXY comes out and states that the process will be extended to further evaluate experimental processes.
I believe a further upto six months could be taken. (Six months could become Nine or Twelve)

Thats well and good but Holders have no idea as to progress of the processes and actually what GXY is experimenting and what effect that has for the several interested parties. We may end up with a crackerjack deal or be left holding the baby. (going it alone with SDV)

Thats what any potential further Big Buyers are potentially waiting for. Clarity. Retail investors wont move the S/P. imo

The Big Players will come to the sector but its not happening atm Its a guess when they do!

So we have no new interest in the lithium sector atm and GXY still evaluating different process to put forward to Potential Partners for SDV all the while Shareholders receiving no updates on progress?
It would be fair to say that with the several offers on the table that because of these "Test Work programs" that it maybe narrowed down further for one reason or another?

From GXY.......Dec Qtrly
"Process Development
As part of the Company’s continuous product validation and process optimization strategy the project team is currently undertaking two concurrent test work programs. Work is currently underway to prove up and fine tune each unit process in the existing process flowsheet (incorporating solar evaporation ponds) to produce a battery-grade lithium carbonate.

A strategic decision was also made in late 2018 to further assess alternative processing technologies through a parallel test work program utilizing several non-conventional technologies that are already in commercial use, albeit in non-lithium industries.

To assist this process, an independent process advisory committee has been established to oversee and guide this work program.
The committee comprises three technical industry experts, with former experience at FMC, Rockwood and Tianqi, as well as two senior Galaxy representatives."

Md

GXY Price at posting: $1.97 Sentiment: Buy Disclosure: Held
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