Please excuse me for creating a new thread but I think the GXY...

Please excuse me for creating a new thread but I think the GXY forum has gone off track with discussion of anything but lithium.


To address the point of the cost to mine gate being $205.

Sure, it's possible to argue that we should be looking at current producing assets that can be an indication as to what might be, however the James Bay resource is a mountain of spodumene. You could practically load it onto a truck with a forklift and if memory serves correct the company considered a plan to come into the mine from the side of that mountain of spodumene which has the potential to reduce the costs significantly.

Lithium Chemicals production.

I see that many have been wondering about the Piedmont affect. That being the share price has shot up with a market cap around the same as Galaxy.

The bullish sentiment appeared to be tied to the Tesla affect… that being the 5 year agreement they have signed with them to provide lithium chemicals.

If we set aside the Tesla affect and delve deeper, I think there are a few things that Galaxy can learn from Piedmont and one of them being, that they have a plan shared with the market to produce lithium chemicals.

You will need to open this presentation click HERE

They even have a clear path to construction and commissioning if you look at their presentation from November 2020 on page 19, which shows the production from their Kings Mountain Chemical Plant will begin commissioning by the end of 2022. You will also notice that is presented very clearly, without differentiations in colour. It is all within the calendar years. They title that page:

CLEAR PATH TO CONSTRUCTION & COMMISSIONING

It doesn't focus on spodumene but on the Lithium Chemicals they will produce and places the mine in the backseat.

Take a look at page 25 where they state:

SPODUMENE PROJECTS EXIST WORLDWIDE, BUT 100% OF LiOH CONVERSION OCCURS IN CHINA.

In that one statement they have downramped on spodumene production and point towards Lithium Chemicals production being the future by giving a somewhat Elon Musk salt on the salad comment about spodumene (Hard rock mining) It also hits a nerve when it comes to the negative China sentiment that is currently floating around. Hopefully noticing this doesn’t affect the delivery of the items I have ordered on Alibaba recently.

The following pages of that presentation talk nothing about spodumene, they talk about EV demand, 811 cell cost which is linked to Lithium Hydroxide and finally Lithium Chemicals prices from a well-recognised company in the lithium community, Benchmark Mineral Intelligence.

Let’s reverse the presentation and head up to page 11 where we have a wonderfully laid out map of both the United States and also Europe.

I would have probably placed that just after page 25 but here we are, looking at all those little companies and the demand they will have. I don’t even need to show one of those hockey stick charts to get you excited, because you can imagine by some of those big names and what we already know of their plans to switch to electric vehicles that there is going to be an insatiable demand for Lithium Chemicals. – Though looking at Norway, I don’t know if they are trying to say that’s where I live, because that’s certainly not how you spell moron. J

Good, you went and looked.

Enough about that presentation, I am not trying to get anyone to go and buy into the company I am just simply highlighting difference between that and how Galaxy presents itself to the market.

Are these guys looking over the fences, surely that is their job to do that?

Do they ever take a moment to look at the negatives that might be perceived and work to adjust those views using lithium market intelligence?

I am sure, if we slipped a few of those pages into our own announcement that there might have been more interest in the company.

But @Thesi they did! They did have slides like that on there!

Yes, they did, and then on page 16 I think it is, they spoke about spodumene which has been smashed by an oversupply and is not rising as rapidly as Lithium Chemicals. Surely Hollywood Tony could have told them this whilst looking over it on his iPad and shoving another jam donut in his mouth.


Galaxy needs to have a simple mindset adjustment that their future is not about spodumene. Surely if anything Mt Cattlin has told them that?

The main pièce de résistance would have been talking up company plans for conversion.

But @Thesi, come on they don’t have plans for one. Well that’s from what we know now…. Or do we?

There would have been nothing wrong with the company taking a bit of artistic freedom and spruiking the idea that this is their plan. Ask anyone that likes to talk about NPV.

If the company had revealed its intentions with some rough figures for a converter and focussed on that being their goal in a few of those slides, I am betting that yesterday's smash down of nearly 5% wouldn’t have occurred as including a converter raises the value.

Piedmont has sent a strong message that they want to focus on conversion and would be also happy to buy spodumene to make that happen, so they are not constrained in analysts minds by the resource. – And that @GCar is when Peter of Potter reduces his discount and makes your lips touch your ears because you’re smiling so hard and probably, he might increase the valuation being allocated.

We have only discussed James Bay here, but the company would have done well to slip a bit more in there about Sal De Vida on a slide just to offer a reminder. - Unless spodumene prices are very favourable I would make sure that Mt Cattlin receives very little limelight.

But @Thesi it was just a PEA why would the company do all of this?

Who cares, what it is, every presentation is an opportunity for the company to sell itself to the market.

The company has spoken about its plans to unlock value, and that can be done by developing the assets, but also in how the company presents itself to the market by the story it tells.

Over the years I have noticed that other companies are more interested in telling their story and want it bad, but Galaxy doesn't and the story it tells about itself is perhaps no different to what a corner shop owner would tell you about his business.