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Old 11-13-2012, 12:32 AM
Sparty Sparty is offline
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Default GXY ups production and sales

Highlights

 Jiangsu Plant October lithium carbonate production 428 tonnes, up 50% vs September

 Total sales for October 273 tonnes, recorded revenue of A$1.7 million (RMB 11.2 million)1.

 Battery grade lithium carbonate sales commenced

 100% of battery grade production met tight quality specifications

 Further reduction in impurity levels across product

 Calcination and sulphation kiln achieved 92% on line time

 12 month ramp-up of Jiangsu Plant on schedule
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Old 03-22-2013, 02:07 AM
Sparty Sparty is offline
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Default Galaxy buys spodumene from Talison Lithium

At first glance GXY's decision to put its Mt Caitlin mine on care and maintenance seems curious. However on reflection it makes perfect sense: Galaxy is one of the world's foremost processed lithium producers and now is the world's only lithium carbonate producer with a 99.99% pure product.


That they are on the verge of producing electric vehicle batteries in house with off-take agreements already in place means that they are well down the path to a massive value add.
"Galaxy's Battery Division is advancing plans to build a Lithium-Ion Battery Plant in Jiangsu, near to the existing lithium carbonate facility. Proposed Phase 1 production is 620,000 battery packs per year primarily for the e-bike market. Lithium-ion batteries have superior energy density, and are more efficient and environmentally friendly than traditional acid batteries. Originally used in computing and mobile communications, lithium-ion batteries are being increasingly used to power electric (e-bikes), vehicles, and mass energy storage systems.Galaxy will initially target the e-bike market in China.

"This massive value add is encapsulated in the images below:



The way I see it is that GXY can well afford to concentrate its energy on getting the EV and other batteries into production and taking the value add from $3 to the finished product value of $500 - while secure in knowing that Talson probably cannot shaft/squeeze them by jacking the supply price of the raw spodumene or threatening to diminish supply. The latter is based on Galaxy's ability to rapidly recommence production at Mt Caitlin and its dominant position in relation to raw material supply; with its Australian & Canadian hard rock resources and its high quality Lithium Brine salar in Argentina.



And perhaps the best bit is the market hasn't seen this and so now could be a great time to get set.

Earlier GXY posts by Sparty.
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