Good positive vibe in the report. Nothing groundbreaking but strong summary of the fundamentals (lithium prices / demand in China / GXY timing it right etc)
Things to note: - "A Hong Kong listing remains under consideration by the Company" - Easy to forget about the scale of James Bay: "Galaxy said the design of the James Bay plant's crushing and heavy media separation concentrator would be modelled on Galaxy's Mt Cattlin plant in Western Australia and expected the plant to process 1,000,000 tonnes of ore per annum." - "The Company is continuing its discussions with the WA Government for the grant of the Ponton Project tenement."
- "The Company completed agreements in 2010 with 13 major Chinese lithium cathode makers and with Mitsubishi Corperation of Japan for 100% of the Jiangsu Lithium Carbonate Plant's capacity. As the plant is moving into production, the Company is preparing for product qualification, sales and distribution of the final lithium carbonate product. There continues to be STRONG INTEREST from buyers in other regions like South Korea and Europe."
- "Galaxy has partnered with Sino Trans for the establishment of the distribution network and warehousing system. The Company is also preparing for shipment to Japan through its offtake partner, Mitsubishi Corperation of Japan."
- Remember the share options... "On February 13, 2012, 8,550,000 ESOP options were issued. These options were exercisable at $1.16 and vest upon completion of 18 months service from 30 November 2011, successful listing on the Stock Exchange of Hong Kong Ltd and the Company’s share price being greater than A$2.00 based on a 10 day VWAP"
- Still $18m in the bank at y/e :-) - Still $67.5m + $90m = $157.5 drawdown available with China Construction Bank
Liquidity looks good, management sound very confident over product quality... expecting a significant push on towards $2 over the coming months.
Good luck all
GXY Price at posting:
31.9¢ Sentiment: Buy Disclosure: Not Held
