Galaxy on track for revenue of $20b per annum

[Sparty]

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.

Why?

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.