$80m capital raising, page-5

“Galaxy also recognises that development lead times on lithium mines and projects can be in the vicinity of 4-5 years…This timeframe would allow Galaxy to fully benefit from the potential demand and lock in long term off take contracts. Galaxy believes that those lithium companies with operating projects in place in anticipation of this potential demand will be in the best position to benefit.”

The demand story is strong. The supply side(costs/debt) appears to be the biggest challenge facing the company.

After the Rockwood Talison takeover Roskill reports that Chinese mineral converters may take steps to diversify their raw material suppliers. The chinese groups taking $50-$60m equity stake in a capital raising may a move in this direction, to secure supply.

These cap raisings and dilution, are difficult for holders to stomach. I did not participate in the last one and bought in lower. Depending on how they spin it(better be good), the same may happen again to SP. The SP will start going up when they turn the corner and RAMP UP. I don’t think necessarily in the black to start, strong revenue/cash flow is fine. Long term offtakes, any income in advance for these? That would help.

FMC associations and Argentina project is interesting, even though some of you did not like this buy, could be a white knight lurking to save our bacon down the track. Check Toyota and Olaroz and it should make sense, big player to help finance.

http://www.miningweekly.com/article/galaxy-halts-trading-and-flags-fundraising-2012-11-01

“Production met sales demand for the quarter, with 586 t sold”, no kidding, more please!