Ann: Galaxy Recommences Capital Raising and Supp , page-11

re: Ann: Galaxy Recommences Capital Raising a... I've just reread the supplementary prospectus - if the full subscription is taken up there will be 1.169 billion shares plus 876,533,252 options. Assuming the company can perform and the shares trade above 8c then all of the options will be excercised before Dec 2014 - meaning there will be over 2 billion shares on the register!!! This would mean that on $25M profit and a PE of 10 the shares would be worth 12.5c each. My point is that GXY will only be viable if they can get SdV up and running and increase the annual profit closer to the $100M mark in the years ahead.

It's very, very dilutive. I don't understand the company handing out free options like confetti.

Even if Jiangsu pumped out 17k of Li3CO2 and 5k of LiOH they are planning - at a profit of $2000/t for the carbonate and say $3000/t for the Hydroxide - that's $49M. It's not massive upside.

These figures change greatly if the price of Li2CO3 goes up of course - but there is more production slated for the next 2 years so I can't see it skyrocketing.