Great news this as far as I am concerned. Still over $50m cash in the bank and (apparently) favourable loan agreement.
"The Chinese Government?s recently-endorsed 12th Five Year Plan (2011-2015) targeted renewable energy usage and a significant boost to electric vehicle ownership. The consequence of this plan will be a significant rise in lithium-ion battery demand. Galaxy?s Battery Project falls into a strategic mandate area for China and therefore is considered an ?encouraged? industry for the country."
... the latest 5 year plan in China is exactly what Galaxy's management have been targeting. Regarding the five year plan I came across this article:
"Rothschild, who is making his first visit to China, said he is interested in the seven industries mentioned in the document: biotechnology, new energy, high-end equipment manufacturing, clean-energy vehicles, new materials, next-generation IT, and energy conservation and environmental protection.
These industries "account for 3 percent of China's GDP, and the government is targeting a 15 percent share by 2020", he said.
The focus will be on investing in companies with top-line growth drivers that have the ability to produce predictable and stable cash flows in the future, he said, adding that use of leverage will be minimized."
The Creat Group, mentioned in this article as having entered into a significant partnership with the famous Rothschilds, are the largest stakeholders in Galaxy (38m shares), having invested into GXY through Creat Resources.
Galaxy's management are well connected in China and I am sure they knew about the direction of the Chinese five year plans along time before they are released, hence the almost complete plant at Jiangsu. Exciting times.
GXY Price at posting:
24.2¢ Sentiment: LT Buy Disclosure: Not Held
