Creat Res Ld Share Discussion Threads

[rec0very stock] 27/8/2013 12:30

GXY started trading again last night. Current value of CRHL GXY holding is just below £2m. CRHL debts in excess of £25m.

DB hold 11.75% of GXY
M&G hold 14.92%
Vanguard hold 11.04%

Those are the substantial holders (CRHL is not a substantial holder) none are "Chinese"

[ih_318421] 27/8/2013 10:52

CRHL no longer have a significant interest in GXY as they did not take up their rights and were therefore diluted.

Interesting that Mt Cattlin with an average grade of 1.1% LiO2 is shut down as uneconomic at the moment, but the best hole REM drilled was only 0.95% LiO2. Does not sound like REM have an economically viable project and the prices rises there are all hype.

[andrbea] 25/8/2013 17:01

why doesn't crhl get re-rated (after rem has shot up, also having a lithium project or 2)?

I know their Australian partner has lithium processing problems
but crhl still have a 10% stake don't they, and share price very weak just now (so massive headroom)
Anyway Galaxy has other projects too (eg Sweden)

Andrew Meloncelli has again confirmed that GXY is relisting on ASX on 27 August
gxy thread: 23.8.13

SdV is worth more than 8c /sh. If it does trade at 8 or below it is way undervalued. We are in a stronger position due to the raising as we have around $16M extra cash. As long as Jiangsu can get close to nameplate in the next few months we should be solvent with no risk of bankruptcy. I agree we are a takeover target - should be an interesting few weeks ahead.

gxy's CEO fell short
but he has left now (or will soon: iggy appointed ceo of kogi iron (kfe), 23.8.13)

Iggy's expertise is mining. He was successful in producing Mt Cattlin on time and budget.Then he went into day dream mode of vertical growth for Galaxy from mining to production of Lithium, batteries and bikes of which he had no expertise!
He probably NOW realizes this and has gone back to his knitting of which he is good at.
I am not defending him but facts are facts.
We are all left to lick our hopefully not mortal wounds.

t/o of gxy seems likely (21.8.13):
I am afraid none would takeover it but the Chinese

The chinese have full control over the business in any case .... refinery is in china, raw material supplier is chinese ..... bond holders are chinese .... bod is mainly chinese ..... chinese are the only ones who can lead a taleover .... I am quite concerned they'll takeover it at 8c a share at most ..... disregrading fair value (undoubtly higher)

there may be other potential buyers, that's for sure, but they have no chances against the chinese club

[dontshootthemessenger] 21/8/2013 21:10

This is headed to zero at which price it will still be overvalued.

[sniffer78] 21/8/2013 17:59

We won't know the effect on the share price until they finalise everything and resume trading.

Lets wait and see in two weeks ATB

[rec0very stock] 20/8/2013 00:38

It is totally ridiculous to talk about the last trading price before the halt. Morris would have had some credibility if he had referred to the TERP. It is already in the public domain that CRHL did not take up any rights and as a result has been diluted out of significant investor status. As far as Creat group rotating their directors is concerned, it smacks of winning employee of the month and instead of a parking space near the lift and a photo on the wall and maybe a book token you get to be on the board of a bombed out AIM microcap with some directors' fees to boot.

[theivorytower] 19/8/2013 19:12

Thanks Sniffer78

[sniffer78] 19/8/2013 10:37

Dear Michael,

Please excuse the delay in getting back to you. I was hoping things would be released and I could discuss but Galaxy is still in its trading halt whilst things are being finalised. Currently, if you work on the last trade price for Galaxy before suspension, the company shareholding is worth just over $8.5million. We won't know the effect on the share price until they finalise everything and resume trading. However, I agree our investment is currently not doing all that well. These things unfortunately are out of our control as it relates to the actions of Galaxy and the market.

With regard to the new director, he is an appointee of Creat Group. As a majority shareholder, it is my understanding they have the right to elect two directors to the Board. May Chen, who resigned a few months ago, was one of those two. Mr Zhi Lin is her nominated replacement. The company continues to review potential investments and any project that progresses will be announced at that time. I hope an announcement regarding Galaxy will be able to be made in early September once they have finalised everything. Thanks again for your interest and concern with regard to your company.

Sincerely,

Morris

[rhuvaal2] 15/8/2013 20:39

RecOvery ~ so long as you're polite..... I now leave this thread for a while.

[acta_topup] 15/8/2013 13:06

You may be correct. We are not idiots. And we take a calculated risk with our own money that we can more than afford to lose

[rec0very stock] 15/8/2013 11:15

Dream on guys. You have been warned, it is only yourselves you are deluding.

[rhuvaal2] 14/8/2013 19:41

yes indeed

[acta_topup] 14/8/2013 18:04

It's very clear from recent developments that they see significant value in the stock listing. And all shall be revealed in due course

[acta_topup] 14/8/2013 18:02

Exactly, CRHL is in debt to it's 50% shareholder the Creat Group. This is not "debt" in the true sense of the word. There are no other significant entities involved and Creat have already made it explicitly clear (using the same turn of phrase as they have done year on year) that they will continue to support the company until Summer 2014. It would make no sense to call it in as they would have absolutely nothing to gain. And plenty to lose. They would also miss out on the opportunity afforded by the listing which could be used for a new rapid growth investment.

Given the free float all it would take for a massive rise would be the appointment of a major new figure to the BoD. A wealthy Chinese investor with connections to Yuewen Zheng or other Creat board members is quite possible here.

[rhuvaal2] 14/8/2013 17:22

we agree to disagree... time will tell, as they are in debt to themselves...

[rec0very stock] 14/8/2013 16:46

I think you are deliberately ignoring the elephant in the room. The company has a negative value of about £25m, Creat Group are not going to pump money into it when it is that far underwater. If they really want an AIM listed vehicle they would be far better off finding another shell to take over.

Shuffling the board around just means more directors fees to drain what little is left.

[rec0very stock] 13/8/2013 08:37

Now confirmed CRHL did not take up any of their rights and is no longer a substantial holder due to the dilution.



Trading resumption delayed until end AUG. I would expect the GXY shares to trade at Rights Issue price for quite some time given the level of dilution and the number of warrants convertible at RI price. This values CRHL's holding at £1.8M This is their only asset. They have debts in excess of £25m.

DEAD DUCK

[rec0very stock] 07/8/2013 20:52

CRHL is a very good tax write off for all shareholders, provided they have some decent gains they want to offset with a loss.

British Companies do not have a great track record of living up to the promises they make to subsidiaries, the Chinese track record is considerably worse.

[acta_topup] 07/8/2013 20:10

Switch off the life support! eh? Honestly what are you talking about? CRHL's future is secured AT LEAST until summer 2014. Besides, CRHL is an advantageous entity for tax purposes for Creat and that situation still is very much remains the case.

[rec0very stock] 07/8/2013 19:45

It is now confirmed that the GXY RI was massively undersubscribed, barely making it over the minimum. I am certain had CRHL taken up their rights they would have been named along with the other major shareholder who did take up their rights and was named. All the talk is now around a placing of the remaining shares. I would expect Creat Group to take part in this, but as Creat Group and not as CRHL. Time will tell of course. I am very glad I have never been a CRHL holder, I just wish I was equally glad that I am a GXY holder, who took up all his rights and the same again as additionals, which have been in my account since 1 Aug.

It will be interesting to see where the GXY share price ends up when trading starts again next week. I know it is going to be well below the TERP, it may be below the RI price. That is the problem with recovery stocks, there are some things that the patient will not recover from! I really thought things were on the mend when the plant came back on line. I should have looked more carefully at their cash flow situation. I knew they would not make it to cash flow positive without another top up, I should have taken into account how badly stretched they were already on the debt front. I just hope the new management team can nurse GXY back to health. CRHL however looks to be in PVS, just waiting for Creat Group to turn off the life support machine and harvest the only potentially worthwhile organ for transplant back into the parent.

[acta_topup] 04/8/2013 13:19

You're right - it does look good at this price

[dontshootthemessenger] 03/8/2013 23:47

If you had a braincell you'd be long CCE