"From AFR" Incoming Galaxy chief faces margin woes Falling cash...

"From AFR"


Incoming Galaxy chief faces margin woes


Falling cash margins at the Mount Cattlin lithium mine will be a key challenge facing incoming Galaxy Resources chief executive Simon Hay.
Mr Hay will join the $819 million company from July, as new higher-grade supply is introduced by competing firms.
Mount Cattlin has been producing a lower grade concentrate, which generally brings lower prices and higher processing costs, according to mining veteran and founder of the research house Austex, Rob Murdoch.

"I am very pleased to be joining Galaxy Resources at this exciting time in the company’s evolution. Galaxy has an established and profitable operation at Mount Cattlin and an excellent balance sheet with no debt and cash of almost $400 million providing a strong platform as it enters a major growth phase," he said in a statement.
After nine years in the job, outgoing Galaxy boss Anthony Tse will remain in the executive team in a corporate development and marketing role.