Keep close watch on this A40, once the new drilling results confirm much larger reserve n resource, as well as longer LOM, expect GXY to do the M&A. There is no reason for GXY to hold majority share on a competitor mine. The recent interview on A40 CEO, Mark thanks GXY on the recent private placement and together with the Chinese, they hold more than 20% stake, which is important to block any nasty hostile TO. The question is why GXY help the neighbor competitor, unless their want the whole thing. Possible that the deal was negotiated behind the scene that A40 just need to confirm the mine potential. If we think back GMM day n how It was swallowed by GXY, it is not difficult to see the history repeating itself. From the recent AGM which we learnt from MR that we previously held some shares in KDR as well but GXY sold them n take profit. GXY never increase their share % as they don’t see the future of owning them. But it is different on both A40 n LPD which we are the majority sh. My take, watch the A40 share price to drop further before the acceptable premium precise on the M&A. After watching the GXY space for nearly 4 years and knowing what happen in the past, GXY will never want to go into debt ever. Just look at what happen in SDV, GXY will never want to spend too much cash from our own coffer, the only way to go forward is to spend OPM (other people money), a small stake or OT money to move SDV. That is why it will take longer time for the deal. Same will happen for JB, do not expect GXY to spend too much money. JB will take sometime to re-package itself by getting the local environmental approval follow by DFS done, since the lithium sentiment can take a year or 2 to recover. When that come, JB value will surely be lifted waiting for the OPM again for a small stake to develop the mine. Who knows, if A40 resource confirm to be huge, we might sell JB if the panic buyer is offering the price we cannot resist. GXY is a complete different beast under AT guidance. As a Chinese n having former years of working experience in China, he definitely has the skill on squeezing every penny from the negotiations, and You simply don’t want to be on the other side of the table.
During the AGM, I asked AT on his view about my investment in GXY, his advice is clear. We are investing in disruption stock and very often before the S-curve happen, you will experience very volatile price movement. The best thing is hold it thru and you will see the light at the end of tunnel, and that is what he will do.
Cash is king man. Go GXY
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