Ann: Mt Cattlin Shipping Update, page-84

It is true that profit margins are calculated as sale prices - production costs, but companies rarely just analyse sale prices. The real determinants are supply and demand.

Demand - There is a consensus that lithium demand will continue to soar which will have the effect of increasing prices (refer to my previous post above).

Supply - Despite the increase in demand, we cannot forget that the ever growing supply of lithium actually has the effect of driving the price down. Currently, this isn't a problem for Galaxy as they actually need to meet high production goals that they have set for themselves, but eventually, if the amount of lithium miners continue to increase, they will need to compete with each other (through better quality or lower price) in order to actually get rid of their stock.

Furthermore, even though today's sale prices and production costs have not changed, share prices do not just reflect today's prices and production costs. I am unsure what you mean when you say "suppliers coming online", but suppliers of lithium will definitely affect the share price of GXY today, and probably more so than today's prices and production costs.

Despite this, I am still a believer of GXY, but it is best to perform a risk assessment.