From the Full Year 2018 Results Announcement. remembering these words from our CEO:
Anthony Tse, Chief Executive Officer (“CEO”
commented, “Strong financial performance throughout the 2018 financial year capped off what has been a transformative period in Galaxy’s history.
Mt Cattlin restarted operations at the end of 2016 and has now been in operation for two full years.
This has enabled Galaxy to take advantage of a strong lithium price environment and deliver a 90% increase in operating EBITDA (US$58.1 million) for 2018.
From a strategic execution standpoint, the completion of the POSCO transaction substantially de-risks financing at Sal de Vida, as well as provides support for Galaxy’s growth strategy through the resulting strengthening of the balance sheet.
Today, Galaxy is in the best financial position it has ever been with an operating asset that produces robust free cash flow and with a balance sheet that boasts zero debt and a substantial cash balance.
These key strengths underpin Galaxy’s organic growth strategy and its continued commitment to the advancement of its tier-one assets, Sal de Vida and James Bay.
Unlocking the fundamental value of Galaxy’s global asset base and creating long term shareholder value remain our core objectives.”
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A glimpse into the mysteries of the Galaxy from the CEO; unlike some mysteries, the answers will be revealed to shareholders over time.
The market would be well aware, of the underlying fundamental value that is inherent in SDV and JB, which are awaiting further development and advancement towards future production, and in time, a possible ramp up, to supply some of the exponential demand, that is to be expected in future years.
The POSCO money out of the lock up, and the possibility of a JV partner, will derisk the SDV Project even more.
The reason for the holdings of the big institutions, playing the long game, and giving us all a run for the money.
I just think about this exponential global demand, and read some of the numbers of the amounts of supply, that are currently being produced in our lithium mining companies, and those projected from the companies nearing production.
Can see a big disconnect looming in future years, as demand continues to outstrip supply; there is more money being ploughed into the sector, (and remembering that it still needs further billions to be invested), so that battery/auto manufacturers can be well supplied on an annual basis, to meet their ever increasing annual projection targets.
The Galaxy share price is allowed out of the lock up every now and then, and permitted a bit of a run in the exercise yard, before being put back in the slammer.
However, no matter how tough the going may get for Galaxy, at least some of the substantial works are being attended to, in these earlier stages of development, and will set the scene for what lies ahead.
How can our share price not break out at some stage in the future. It just needs more muscle, and the right tools to jimmy the locks, and break the shackles.
