The similarities between Talison and Galaxy are really close.
Talison- Last quarter they generated A$22.7 million in the quarter, albeit this was a 31 per cent decline from the second quarter of fiscal 2011 due to shipment problems.
Galaxy- At 83% capacity is generating $22,046,868.75 million (Selling at technical grade only remember)
Talison- Set to commission phase2 of a 20,000 Lithium yield plant in 2015
Galaxy- Set to have Sal de Vida in production by 2015 The PEA outlined an operation producing 25,000 tonnes pa Li2CO3 AND 107,000 tonnes pa KCL (Potash)
Talison- Sells chemical grade and Spodumene to china
Galaxy- Sells Technical grade *option to sell Battery grade*
The big difference here is, Talison has paid off their debt & Galaxy in the process of completing it by Q1 2013.
It could easily have been us getting picked off for a similar price point of $726million. Resulting in our s/p to jump overnight to $1.43. At least now we have a basis to value Galaxy at, on the current market offerings.
As much as I'd like to see Galaxy stay independent, I just don't know how they'll manage that. That being said, part of me wouldn't mind being paid off either :)
GXY Price at posting:
15.9¢ Sentiment: LT Buy Disclosure: Held
