Ann: Quarterly Activities Report, page-43

These are some of my take a ways -

I never got an invite, I don’t care, sniff, sniff!? (Below)



'In Ravensthorpe, Galaxy hosted an open day for 350 community members called “Afternoon with Galaxy.” The Company also relocated and upgraded the Ravensthorpe Community Gym.'

Reference -

Galaxy Resources. (23-01-2020) DECEMBER 2019 QUARTERLY ACTIVITIES REPORT p.2
http://www.gxy.com/announcements-1/quarterly-activities-report-7

Even if I do think that the streamlining of staff such as MR + NR would enhance lower cost cutting advantages for the company and the share holders. (Below)

'Mt Cattlin quarterly production unit cash cost of US$406 / dmt and full year of US$391 / dmt, reinforcing Mt Cattlin as one of the lowest cost lithium concentrate operations globally.

Reference -

Galaxy Resources. (23-01-2020) DECEMBER 2019 QUARTERLY ACTIVITIES REPORT p.1
http://www.gxy.com/announcements-1/quarterly-activities-report-7

So, does this put an end to the outstanding $40,000,000 million odd AUS debt ball-parked earlier? (Below)

'CORPORATE

Alita Senior Debt Facility Repaid by Administrators

The Alita Resources Limited outstanding senior secured loan facility (“Facility” of US$31.1 million acquired by Galaxy in August 2019 was repaid in full during the quarter.

Funds received were used to repay Galaxy’s corporate debt facility used to acquire the Facility, leaving the Company debt free as at 31 December 2019.

Reference –

Galaxy Resources. (23-01-2020) DECEMBER 2019 QUARTERLY ACTIVITIES REPORT p.7
http://www.gxy.com/announcements-1/quarterly-activities-report-7

I see this, (below) as one of the main drivers of the share price –

'Demand

The automotive industry of China retracted in 2019 with overall vehicle production and sales declining by 7.5% and 8.5% yoy, respectively.

The NEV sector was disturbed by the reduction in NEV subsidies, as well as heavy discounting of internal combustion engine (”ICE” vehicle inventory that no longer complies with the new China VI emission standards.

The China Association of Automobile Manufacturers reported NEV production and sales of c.353,000 (29% decline yoy) and c.332,000, (36% decline yoy), respectively for Q4 2019.

Total NEV production and sales volumes for the full year were c.1.2 million, representing declines of 2.3% and 4.0% yoy respectively.

Among NEVs, battery electric vehicle (“BEV” production of 1.02 million units reflected 3.4% growth yoy, indicative of the continued consumer preference for full battery electric vehicles, as opposed to hybrid plug-in electric vehicles.

GGII reported total battery capacity installed in registered NEVs of 62.4GWh in 2019, representing 9% growth yoy.

With total NEV sales of c.1.2 million vehicles, this implied an average battery capacity per vehicle of 51.8KWh, a 14% increase yoy.

Subsequent to quarter end, China’s Minister for Industry and Information Technology (“MIIT” announced that the country does not plan to cut subsidies for NEVs again in July 2020.

MIIT also recently issued an updated New Energy Vehicle Industry Development Plan (2021-2035), reaffirming China’s desire to reach a 25% penetration rate of NEVs by the year 2025.

The US EV sector declined in 2019. InsideEVs reported total BEVs and plug-in electric vehicle (“PHEV” sales of 243,356 (3% increase yoy) and 86,173 (31% decline yoy), respectively.

Total EV sales reported for 2019 was c.329,000 vehicles, representing a 9% decline yoy.

Conversely, healthy EV growth was experienced in Europe throughout 2019. Clean Technica reported 2019 EV sales of c.579,000 vehicles, representing 43% growth yoy. 2020 is set to represent a breakout year in global NEV model releases with multiple new models set for introduction from many of the world’s traditional auto-manufacturers.

Reference -

Galaxy Resources. (23-01-2020) DECEMBER 2019 QUARTERLY ACTIVITIES REPORT p.8
http://www.gxy.com/announcements-1/quarterly-activities-report-7

Conclusion

The good ship Galaxy is sailing steady as she goes and ready to spring into any lithium demanded supply action when required!?



This is not advice,
Do Your Own Research