galaxy analysis, page-5

The SP of Galaxy so far has been driven by sentiment rather than by
fundamentals because, as of yet, GXY has no earnings.
Althought Mt Catlin is producing spodumene the product has not been sold on the open market to realise revenue but instead it has been transferred to China at a notional price and stockpiled there.

Similarly, the Chinese carbonate plant is not complete yet and not producing revenue.

Then of late there is the promise of a battery plant which is still on the drawing board.

So in summary, there is only speculation on what GXY may produce
and what profit it may make, so sentiment still drives GXY and not EPS.

At these prices, GXY is a fair speculative buy but it is yet far from
fundamental investment grade. As time goes by the 3 phases of GXY's
vertically integrated model will become derisked, but, in the interim, let's notkid ourselves. it is far from being a fundamental buy.
It is interesting that while the mine was being developed Hot Copper
posters were promoting the carbonate plant and now that the carbonate
plant is almost finished HC copper posters are promoting the battery plant.

At present focus ought to be on Mt Catlin and its profitability and the carbonate plant's prospects rather than jumping the gun by focusing on a battery plant which is years away from making a profit.

Moorookamick
Tunis.