why did they even build this?

Years later the questions remain.

Wasn't this touted as a low cost producer of lithium carbonate with a full order book? Are they meeting the DFS projections for profits? What about opex costs, have they revealed that yet? The share price is suggesting something is badly wrong.

So what now? More cap raisings, corporate transactions etc?

At least the brokers will be doing alright, with 506 million shares already issued.

http://hotcopper.com.au/post_single.asp?fid=1&tid=1019461&msgid=5687130

re: Ann: Final Jiangsu Definitive Feasibility... (peter pumpkinhead)
Code: GXY - GALAXY RESOURCES LIMITED
Post: 4643869
Reply to: #4642312 from thelynxx
Posted: 22/10/09 14:41
Stock Price (at time of posting): $1.655*

Announcement: GXY-465048 - Final Jiangsu Definitive Feasibility Study Positive

There are two critical pieces of the puzzle missing which make this a very dangerous play imo.

-The opex costs have had some of us curious for a long time since they appear to have a relatively low grade spodumene. How do they intend to be one of the lowest cost producers and how will they stack up against brine producers? Why are they able to provide such detail on capex but none on opex?

-They have made a big deal about having letters of intent for more than their planned production - however so far no off-take agreements. How can they go into production with no signed-up customers? I would not expect lithium demand to exceed supply for some time after 2010 with demand from EVs likely to only be a trickle at that point in time.

They may face situation where they forced to run at reduced capacity for some time, or forced to undercut their lower cost competitors to try to win business. Either option is a very high risk proposition with high debt levels. IMO there's a good chance the Chinese end up with a cheap plant through default, no doubt the thought has crossed their minds.