Ann: Galaxy Rights Issue Presentation , page-12

In the next year or so lots of new lithium projects begin production. If Galaxy's China plant alone will supply 17% of the carbonate market and 35% of the BG market; think what the other projects would do to the supply side.

The latest Roskill report estimates additional supply will drop technical-grade lithium carbonate prices to US$5,000/t CIF in 2014.

http://www.marketwatch.com/story/lithium-market-becoming-more-reliant-on-batteries-for-continued-strong-demand-growth-2013-05-16

Galaxy's plant is operating at US$4900 - $5300 easy to see there could be problems ahead when prices drop. GXY say battery grade sells at a premium but then again there will be extra supply from the other new projects, hence downward pressure on prices in this segment as well.

So the question now is given the supply and pricing ahead would some one want to pay for this plant or spend the money else where on a low cost brine operation?