GXY 7.10% 85.0¢ galaxy resources limited

Open Letter to Simon Hay

  1. 1,658 Posts.
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    Dear Mr Simon Hay,


    It seems appropriate for someone here to welcome you aboard.

    Since no-one here has done it yet, I’d like to be the first to formally wish you all the best for your new position at the helm of Galaxy Resources.

    May you bring your experience, fresh ideas and a determination to take this company’s steering wheel

    and yank it back on track.

    We certainly would all appreciate that. Very very much.

    I use the word “we” fairly confidently, that I have read enough posts here to know the frustrations that many have been expressing here.
    I’m just collecting them in one place, and removing the expletives. haha..


    In a nutshell, it goes something like this …..

    We, the increasingly poorer, huddled and disappointed Galaxy masses feel greatly saddened that we have been cast adrift into a very turbulent current that has washed away many holders’ fortunes, confidence and respect.
    Particularly when there are so many great things going for this company fundamentally.
    The frustration we have at the current share price has been amplified by the fact that we have seen such amazing progress at Mt Cattlin’s restart, and some exceptional deal-making by your predecessor.

    Despite being in such a great position, it is bleedingly obvious that Galaxy holders are not seeing the returns on their investments.


    We are not all short term traders and understand patience and the rewards of carefully considered actions and strategic planning.
    However, we are often left to guess what the company is up to, we rely on satellite data and checking the port website.

    Many share-holders wish most of all the communication is improved.
    Perhaps it is time to review the policy of not reporting monthly shipments, and providing guidance on them much more regularly.
    Constantly updating your website and social media sites would also be a reasonable expectation.


    It is not 1995. We want to see, as much as possible, the real time progress of our company.


    We would also expect as much transparency as possible around contract and pricing.
    Perhaps it is also time to share the names of our customers with us, so that we can get a feel for how the company is positioned, and where our final product ends up.


    It is understandable that SDV negotiations will still need some commercial in-confidence secrecy with which to manage the process of bid, counter-bid etc. But we also expect a bit more transparency about progress.


    Many holders would like a more regular, even if less detailed overview of the company’s activities.

    If the company is prevented from shipping due to circumstances like our berth being scheduled for additional maintenance etc. - then we would expect to hear that as quickly as possible.


    We have faced incredible pressure on the share price for the last 18 months from shorting.

    It has not been reasonable or deserved and it has had a massive secondary impact on sentiment.


    This forum used to be one that many respected for the quality of the debate and fundamental research.

    It is now the home of vicious insults and abuse. I recommend you have a stiff drink before you wade through any of these threads.


    Anyway, I am fairly certain that as a collective share-holder group, we would expect that the company has the guts to engage with those parties who are working against share holder value.

    We want you to make it more difficult to do what they have been doing.
    You need to disrupt their business model.
    Can we not name and shame them?
    Can they not be expected to be accountable for their betting against a leading company in the renewable sector?
    Their own reputations can be dragged into the dirt and their own share-holders can be made aware of their shorting activities.
    Can we not engage with the bank managers/fund-owners first and, if they are unwilling to change their practises, then we start informing their own share-holders what they have been doing?
    Times have changed. If they are seen to be stomping on renewable companies then they will punished by their own share-holders.

    I’m not stupid. Idealistic - yes - but I know that this company exists in shark-filled ASX waters, and the rules of Fight Club prevail.

    BUT. I refuse to believe that something that is working so badly can not be fixed.
    I think any effort to push back will see you get kudos from share holders and the entire sector.

    We are in the best position to do this. We do not need the banks' money for credit raises.
    We can push back and tell them that they need to be doing more for this sector, not milking it for their blood money.


    You were brought on board to be the Building Boss of Galaxy.
    W
    e want to see you do this as soon as possible. As cleverly and profitably as possible.
    Sal de Vida is no longer even faintly reflected in the share price
    and we need to see momentum and a plan of action. Please feel free to remind us of what you are doing, the state of play with regards to partnerships and the progress of direct extraction tests. Don't forget about telling is what you're up to with James Bay.


    But. The share price can not be forgotten in this.
    It is imperative to how the company will grow and earn the respect of the market and future partners.


    More work needs to be done to counter the manipulation of the share price, and the sector in general.
    Am I hammering this point too hard?
    Galaxy needs to step up and stand up against negative reports put out by bankers and shorters of Galaxy stock.
    They shouldn’t be allowed to control the narrative the way that they are.

    As MD of Galaxy I think you should be the one willing to engage with the media, and via ASX announcements and quickly refute those claims and provide some push-back.


    We understand that fundamentals are critical and that Galaxy’s progress should bring rewards in the share price.
    As the Building Boss, we are counting on you Mr Hay, to put us more firmly on the global map.

    We want James Bay and Sal de Vida reflected in our share price.


    I think the company needs to keep focus on its building progress but also to make sure that the work is adequately explained and doesn’t again fall victim of other parties controlling the narrative.

    We shouldn’t need private retail investors on forums like this this, fending off co-ordinated attacks by well-resourced media companies and funds, who also have their organised presence on these boards.


    We have seen the POSCO deal, one of the biggest lithium deals of 2018-2019 end in the decimation of our share price and sink our market cap from front-runner to second stringer behind companies that are years behind us in terms of debt and assets.


    You now have a great wealth of share-holders’ cash in the vaults.

    We would like to see you spend it wisely for our greatest benefit.
    If possible we would like to be informed of the strategic purposes.

    There are many, and I think I am now firmly in that group, that would like to see a share buy-back instantiated to provide some resistance to the daily shorting, and to send a message that Galaxy is under new management.
    I would love to read an announcement Monday morning that basically shows the shorters of Galaxy that the door is there.

    Something must be done immediately and I hope you are a man who has come to Galaxy with a strong strategic mind and willing to work hard for all of us.


    Finally, I wish Anthony Tse all the best as head of the New Deal-Making Division. He has been responsible for some epic negotiation work. His work deserves more respect in the market than it has achieved, and I can understand if he has been very disappointed to see how the market has reacted to his efforts.
    Ultimately he has done the right thing by stepping aside to concentrate on his deals and the relationship he has with his clients. I am sure that share holders will one day more fully appreciate the structural reform of Galaxy’s finances and the foundations for the future asset development that he accomplished.


    Thanks for listening Simon.
    It's not going to be an easy job but I think if you get it right you will be leading one of Australia's biggest companies within the next 5 years.
    And be wealthy as all hell too.

    I wish you all the best and hope you get cracking straight away.


    All the best
    AC and the patient holders of Galaxy

 
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