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Old 10-11-2013, 07:40 AM
Sparty Sparty is offline
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Default Galaxy best ever production and sales month at its Jiangsu Lithium Carbonate Plant

 Jiangsu Plant achieves record production month of 795 tonnes in September
 Total production for the September quarter at 2,040 tonnes
 Sales volumes of 632 tonnes for September
 Total sales volume for the September quarter at 1,816 tonnes
 Record high monthly volumes of battery grade production and sales
 Steady ramp up at Jiangsu Plant indicates sustained improvement in production and sales

Galaxy Resources Ltd (ASX: GXY) ("Galaxy" or "the Company") is pleased to announce its best ever production and sales month at its Jiangsu Lithium Carbonate Plant ("Jiangsu").

In September, Jiangsu produced 795 tonnes of lithium carbonate, which is a monthly production record high for the plant. Production volumes recorded for the quarter were at 2,040 tonnes, a 15% increase quarter-on-quarter versus the quarter ending June 2013. Importantly, 1,373 tonnes or 67% of volumes produced in the September quarter were battery grade, which is a 95% improvement quarter on quarter.

Sales volumes for the month of September were 632 tonnes, another monthly record high. Sales orders achieved for the month were impacted by seasonality in customer demand due to the Mid-Autumn Festival Holiday, and also the week long National Day Golden Week Holiday in early October, when most businesses and manufacturing operations in China close down. For the September quarter total sales volume was 1,816 tonnes, representing a 9% increase quarter-on-quarter versus the June 2013 quarter. Also significant, battery grade sales continue to increase and now comprise 64% of total sales volume, representing a 70% improvement quarter on quarter.

Galaxy Interim Managing Director Anthony Tse said that "the production and sales records achieved for the month to complete the quarter were very encouraging and indicated that strategies being implemented at Jiangsu to improve operating efficiency were proving successful. The record production and sales volumes for September and for the September quarter are a strong indication that the ramp up at Jiangsu to achieve a positive operational cash flow and steady state design production capacity is on track and progressing well.

The record tonnes produced by Galaxy in September demonstrates that the ramp up and efficiency strategies that the new management team have introduced at the Jiangsu plant are having a positive impact on production
levels, particularly given the sustained and steady increases seen over recent months.

We are firmly on track to achieve our aim at least a cash-flow break even status at Jiangsu this year and the robust demand for Jiangsu?s product and improving production results further underpin our ability to achieve this.

The record September rate represents an annualised production rate of approximately 9,600 tonnes per annum, which is close to 60 per cent of the plant?s nameplate production capacity of 17,000 tonnes per annum of lithium carbonate.

At full production Jiangsu has the potential to generate annualised revenues in excess of US$100 million.

These significant milestones follow the completion of Galaxy's successful raising of $37.5 million under the recent entitlement offer. Funds received from the entitlement offer have been used to commence certain debt reduction initiatives, with US$5 million of Chinese bank debt repaid recently. Discussions continue regarding further reductions in outstanding corporate liabilities in accordance with the restructuring plan previously agreed with the convertible bondholders.

"With a strengthened balance sheet and record production and sales results achieved in September, the Company is now in a much stronger financial position with a positive outlook"
said Mr Tse.

Comment: With China choking on its massively polluted air, battery powered bikes are becoming increasingly attractive. That China's people have a 5.6 year drop in life expectancy due to polluted air bodes well for Galaxy's products in the long term. Lithium is now firmly part of the "electron-economy" and along with copper and the rare earths should see ever increasing demand.
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Old 10-11-2013, 07:50 AM
Sparty Sparty is offline
Join Date: Mar 2009
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Default And

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