(ASX: GALAXY RESOURCES LTD: GXY )
SP: 48c
MC: $855.5Million Cash: (AUD) $40.1Million as at 28.4.2017
Debt: (AUD) $13 Million as at 28.4.2017 Shares: 1,976,000,000 www.galaxyresources.com.au
Galaxy Resources Limited is a lithium-focused resources company, with assets spanning Australia, Canada and Argentina. The Company is listed on the Australian Securities Exchange (Code: GXY). Since June 2013, the current management team has taken the Company through a series of significant financial restructuring initiatives to strengthen and improve the balance sheet. In April 2014, Galaxy announced the divestment of its processing plant in Jiangsu Province, China – a deal which held an enterprise value of US$173.2 million.
Galaxy is currently advancing plans to develop the Sal de Vida Lithium and Potash Brine Project (“Sal de Vida”) in Argentina, which is situated in the Lithium Triangle, a region where Chile, Argentina and Bolivia meet, and presently accounts for 60% of global lithium production. Sal de Vida is a proven high quality resource has excellent promise as a future low cost production facility.
The Company also owns the Mt Cattlin Spodumene Mine near Ravensthorpe in Western Australia and the James Bay Lithium Pegmatite Project in Quebec, Canada.
Once processed, lithium compounds are used in the manufacture of ceramics, glass, and electronics and an essential ingredient in producing battery materials such as cathode and electrolyte. It is also used in the manufacture of long life lithium-ion batteries used for consumer electronics, power tools, electric bikes as well as hybrid and electric vehicles. Anticipating the growing demand, Galaxy is positioning itself to become a major supplier of high quality lithium. Recent Company Highlights from the May 2017 Investor Presentation are listed below
GXY has announced today that the BlackRock Group have purchased 110,689,822 Million Shares on the 5.5.2017 and therefore have a 5.6% Voting Power. Why this announcement is significant is due to BlackRock being the Worlds Largest Assest Manager with Funds under Management totalling US $5.1Trillion. This Substantial Holder Notice is a sign of confidence from one of the Worlds Leading Investment Firms and sends a strong signal to the marketplace that GXY is ticking all of the boxes for the heavyweights to come onboard. This announcement may act as a Catalysts for other Funds to either increase or become new Substantial Holders as well.
Please DYOR as this is not a buy or sell recommendation
Cheers
GF
