I've been trying to avoid this forum on HC for a while now, just...

I've been trying to avoid this forum on HC for a while now, just sticking my head in occasionally to see what's going on.

These threads have been the target of a group of trolls for quite a while and whilst I initially just used the good old IGNORE button, the

replies to their posts by those posters who can't help taking the bait and feeding the trolls made reading something of a misery.

From what I have seen here over the last couple of days, the trolls must be pretty happy with their handiwork. It's been a long while since

I've read such despair and misery, so much of which has been based on shipping.

@Thesi - I'm amazed that you, too have been overcome by the sentiment!



Without doubt, GXY have always been poor communicators, but they I doubt that when looked at objectively it could be said that they

are so poor at management that they operate by impulse.

The SDV JP Morgan process was being conducted when the Li market sentiment turned bearish. We were advised that the JP Morgan

process had been concluded (finalists selected) but the negotiations did not result in proposals that reflected the true worth of SDV. We've

also been advised that negotiations are ongoing and that if it takes another six to nine months then that is small beer considering the

quality of the asset and a forty year life of mine. If, at the end of the day, a suitable agreement can not be reached then we are in the happy

position to be able to go it alone.

The YOP has been a success, a little late but not excessively so. The A40 placement came a little out of left field and it will be interesting to

see what comes of that in the future, kind of reminiscent of the Trakker deal.

This is not a company that telegraphs its punches on everything, and sometimes things only become obvious after the fact. The sale

of SDV north for example.

Other times they rely on the fact that they actually did communicate the information, but it seems like no-one was watching or reading.



Which brings me to my point.


Below is the pertinent part of the media release detailing the 5 year binding off take agreement for Mt

Cattlin. A few important points to note:

1. It's a binding, five year agreement

2. It is for 200,000 tpa minimum +/- 10%

3. Multiple partners around Asia (not just China)

4. The sale price is negotiated in Q4 each year.


NOTE: AT advised that last year's negotiated price only covered the first half of this year. This was at our request as the price for

spodumene had weakened and it was hoped that a firmer price would be achieved for the second half. (This may have been a

miscalculation, but one can't expect every post to be a winner).



So, in summary, even though the shipping may have been slid at the customers' request and skewed to the second half of the year,

the contract states that they will take 200,000 tpa minimum per year +/-10% at an agreed price. The fact that AT said it would be 45kt

shipped this quarter and keep an eye one June doesn't preclude a customer or customers from sliding it a bit further after he said it, as

long as they take their share of  the 200KT this year - "Annual volumes are subject to standard commercial terms with delivery on a +/-

10% basis." I don't think a couple of weeks delay in shipping for a product that has been agreed by contract to already be sold is a

continuous disclosure matter. I am not aware of any previous announcement regarding when Mitsubishi settle the contract payments, so

effectively  it could not be considered market sensitive.




THE SKY IS NOT FALLING FOLKS.









AS ASX ANNOUNCEMENT / MEDIA RELEASEAustralia
29 November 2017
GALAXY SIGNS BINDING LONG TERM OFFTAKE AGREEMENTS FOR MT CATTLINHighlights

• Binding offtake agreements for minimum 200,000 tonnes per annum of lithium concentrate signed with multiple customers for 5 years
• 100% of total planned lithium concentrate production from Mt Cattlin sold for contract term
• Headline pricing achieved for 2018 higher than 2017
• A portion of Mt Cattlin lithium concentrate to be converted on Galaxy’s behalf into lithium carbonate and or lithium hydroxide
• Galaxy to commence selling lithium chemical products to the end-user market in 2018
• Offtake arrangements to settle through Mitsubishi Corporation
  Key Terms of the Agreements
  Galaxy Resources Limited (ASX:GXY) (“Galaxy” (“Company”, is pleased to announce that it has executed binding long term offtake contracts with multiple customers throughout Asia. Galaxy Lithium Australia Limited, a wholly owned subsidiary of Galaxy, which owns the Mt Cattlin Project (“Mt Cattlin” in Ravensthorpe, Western Australia has agreed to sell 100% of the planned production of lithium concentrate from Mt Cattlin for 5 years beginning in 2018. Pricing is on either a CIF (cost plus insurance and freight) or CFR (cost plus freight) basis and will be subject to an annual pricing review between Galaxy and its customers in Q4 of each calendar year. The parties have agreed the pricing for FY 2018. Annual volumes are subject to standard commercial terms with delivery on a +/- 10% basis.
  Galaxy’s offtake partners are each leading and reliable producers of lithium carbonate (Li2CO3) and lithium hydroxide monohydrate (LiOH.H20) and are all key suppliers of lithium products and materials throughout Asia.
  Galaxy Managing Director, Anthony Tse said the Company had experienced very strong interest from a wide range of current and new buyers after the consistent quality and delivery of production from Mt Cattlin throughout 2017, with the Company seeing significant increasing demand over the 5 year contract term.
  “The Mt Cattlin team will be working on a number of initiatives through the first half of 2018, to provide its customers with the increasing volume and consistent quality of product they require as they continue to expand their own operations,” Mr Tse said.
  “These agreements also underscore the strong relationship Galaxy has with its customers and consolidates long-term partnerships with a number of the larger and high quality chemical converters in Asia, who are in turn suppliers into the fast-growing lithium battery materials sector in that market.”
  Conversion Arrangements
  Galaxy has also agreed for a portion of the Mt Cattlin lithium concentrate sold under the offtake agreements to be converted on Galaxy’s behalf into lithium carbonate and or lithium hydroxide. Detailed agreements evidencing these arrangements will be prepared in early 2018. This will allow Galaxy to commence selling its own lithium chemical products into the end-user market, which is currently exhibiting a robust demand and pricing environment.
  GALAXY RESOURCES LIMITED ABN: 11 071 976 442
  Level 4 / 21 Kintail Road Applecross WA 6153 T: +61 (8) 9215 1700 F: +61 (8) 9215 1799 www.galaxylithium.com