re: Ann: Galaxy Ships First Spodumene from Mt... My last post was principally about Galaxy's existing value added business plan, the production of high purity Lithium Carbonate and is already financed.
Galaxy postponed the Hong Kong listing based on poor financials, so making a stock dilution assessment on the current sp price is pointless. I'd think Galaxy is obviously saying "in about 4 months" they are expecting a better sp with a market recovery and with the commissioning of the Lithium Carbon plant.
Just for the sake of it I'll have ago at a pie in the sky calc of an up and running lithium Galaxy battery plant based on what Galaxy have said.
Galaxy have publicly stated they are expecting revenue of US$133 million when the Lithium Carbonate plant is at full production of 17 million tons Lithium Carbonate.
Based on the value added figures Galaxy provide, if they go ahead with plans for the lithium battery factory then we are looking at a value added potential revenue of US$22166 million if all the 17 million Lithium Carbonate was converted into Galaxy lithium batteries (ie x500/3). If one assumed 30% profit on revenue, then that is US$6650 million profits at full production of a lithium galaxy battery plant (ie x0.3). If the sp is diluted 1:1 to 410 million shares then at a PE of 1 (ie /410) the sp would be $16.21, at a PE of 10 (ie x10/410) the sp would be $161.21. That stagers me, and again it's with assumptions and is a long away pie in the sky calc until more concrete information and plans from Galaxy, but interesting.
Please check the figures. Thanks.
Cheers wotzon
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