Old 08-06-2012, 04:05 AM
Sparty Sparty is offline
Join Date: Mar 2009
Posts: 1,128
Default Galaxy on track for revenue of $20b per annum

Talison Lithium has just sold glass grade spodumene mined at its Greenbushes mine for around $400 per tonne.

Galaxy's Mt Caitlin production: Last quarter = 27,000 tonnes dry weight spodumene. (Mt Caitlin and Greenbushes are neighbors). So all else being somewhat equal we can estimate that GXY produced ~ $10.8m worth of spodumene last quarter.

And then GXY announced that they have ceased spodumene mining at Mt Caitlin for the time being.


Well the answer is that they could sell all of the spodumene that they produce to competitors or stockpile it while they get their spodumene refining plant at Jianshu, China up to full functionality allowing them to produce the world's purest Lithium Carbonate ~99.9% purity and thus garner a much higher price.

But it gets even better as when they have their electric vehicle battery plant in production they will be able to take $1.00 of spodumene through to $500 worth of battery. So GXY's quarterly revenues could be in the order of $500 X $10.8m = $5.4b and that would be well worth waiting a year or so for.

GXY has another card up its sleeve with their plans to also produce Lithium Hydroxide.

AS we have seen recently Galaxy has now become a multi country lithium resource company with an established downstream with a lot more to come.

I hold GXY.
Reply With Quote
Old 08-06-2012, 01:24 PM
Sparty Sparty is offline
Join Date: Mar 2009
Posts: 1,128
Default Galaxy notes lithium carbonate price rises in china

 Prices rise on tight demand and supply fundamentals
 Spot prices in China of up to US$7,000/tonne for battery grade product
 Battery and technical grade prices in China have risen around 17% in the last 12 months
 Follows two consecutive lithium product price hikes by major producers
 Jiangsu ramp-up timing ideal to take advantage of continuing strong lithium market and prices

Lithium producer Galaxy Resources Ltd (ASX: GXY) (?Galaxy? or ?the Company?) says prices for both technical and battery grade lithium carbonate in its key market, China, have risen significantly on the back of tight demand and supply fundamentals, with current prices up almost 17% on the same time last year.

Chinese lithium carbonate producers have lifted domestic lithium carbonate prices, and the uncontracted spot price for battery grade lithium carbonate in China has hit levels of up to RMB 45,000/tonne, or approximately US$7,000/tonne, in recent months. The Company also reports that technical grade lithium carbonate prices have followed the same trend with
uncontracted spot prices up to RMB 40,000/tonne or approximately US$6,250/tonne.

Lithium market watcher, Asia Metal Pty Ltd, said in a recent note that the, ?mainstream price of battery grade lithium carbonate rose to about RMB 42,000-44,000/tonne (US$6,650-6,960/tonne) and for small orders, many suppliers have sold at prices as high as RMB 45,000/tonne (US$7,120/tonne).?
The following graph shows battery grade lithium carbonate prices in China tracked by Asian Metal Ltd in the last 12 months, demonstrating a 17% increase in prices on the same time last year.
Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump

All times are GMT. The time now is 11:28 AM.

Powered by vBulletin® Version 3.8.1
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.