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GXY, GALAXY RESOURCES LIMITED
blacksheep
post Posted: Aug 29 2019, 09:17 PM
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In Reply To: blacksheep's post @ Aug 29 2019, 08:31 PM

Extracts from financial results for the HY ended 30/6/2019 - selling price comparison is telling
Realised selling price1 US$/dmt
H1 2018 - 940
H2 2018 - 912
H1 2019 - 584

QUOTE
OPERATIONAL AND FINANCIAL PERFORMANCE
The Company reported a total of 98,334 dmt produced in H1 FY2019, representing a 7% increase on the prior corresponding period
and a 51% increase on H2 2018.

Revenue from operations reported for the half year was US$28.0 million, down from US$88.4 million in the prior corresponding period.
This is due to lower realised selling price and lower sales volumes, due to customer shipping schedules, compared to H1 2018. The
average realised selling price for concentrate volumes sold in H1 2019 was 38% lower than the prior corresponding period and 36%
lower than H2 2018.


Group EBITDA, before inventory write down, for H1 2019, was US$9.4 million, compared to US$42.4 million in the prior corresponding
period. Reduced revenue from concentrate sales was partially offset by a reduction in cost of goods sold.

In line with Galaxy’s periodic reporting obligations, the Company undertook a review of key balance sheet items with consideration for
the current and projected lower spodumene price estimates for the short to medium term. This review resulted in non-cash write
downs and impairment of US$176.8 million made up as follows:

 Write down of inventory at Mt Cattlin of US$13.6 million;
 Impairment of Property Plant and Equipment (“PP&E”) at Mt Cattlin of US$123.5 million; and
 Derecognition of Deferred Tax assets of US$39.7 million

The adjustments arising from these write downs and impairment were non-cash items and did not have any impact on cash-flow,
operations or banking covenants.

The Group reported a statutory net loss after tax of US$171.9 million (US$11.5 million profit after tax in prior corresponding period)
which included the non-cash items described above. The underlying net profit after-tax for the half year, excluding the one-off items
was US$4.9 million.

Net cash outflow from operations in H1 2019 was US$79.5 million, driven by reduced receipts from customers resulting from a lower
realised selling price and reduced shipment volumes and a US$54.3 million income tax payment to the Argentina tax authority. Unit
operating costs for the period were US$3871/dmt produced, representing a 30% improvement on H2 2018.

The net cash inflow from investing activities of US$237.9 million was impacted by the following one-off cash movements incurred
throughout H1 2019:

 Cash consideration for the sale of a tenement package in the northern Salar del Hombre Muerto to POSCO of US$271.6 million;
 Strategic investment in Alita Resources of A$22.5 million; and
 Subscription for entitlement in the Lepidico (ASX: LPD) rights issue of A$1.2 million

At 30 June 2019, Galaxy held cash of US$176.3 million, marketable securities of US$27.2 million and no debt.




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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 29 2019, 08:31 PM
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Posts: 6,401
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In Reply To: blacksheep's post @ Aug 29 2019, 12:21 PM

QUOTE
It remains to be seen whether Galaxy will seek to appoint receivers to come over the top of Korda Mentha.


And they have

QUOTE
APPOINTMENT OF RECEIVERS AND MANAGERS TO ALITA RESOURCES LIMITED
Following the appointment of voluntary administrators by the Board of Alita Resources Limited yesterday, Galaxy Resources Limited
(ASX: GXY, Galaxy ) announces that it has today appointed Martin Jones, Matthew Woods and Andrew Smith from KPMG (Receivers)
as receivers and managers of Alita Resources Limited and certain of its subsidiaries pursuant to the senior secured debt facility and
security documentation recently acquired by Galaxy.

Galaxy will now work with the Receivers and the voluntary administrators to determine a course of action for the Alita Group.




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 29 2019, 12:21 PM
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Posts: 6,401
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ASX listed A40 calls in the administrators - GXY is a substantial shareholder

29 August 2019
QUOTE
Alita Resources Limited (Administrators Appointed), formerly Alliance Mineral Assets Limited
ACN 147 393 735 and its subsidiaries outlined in Schedule 1 (‘the Alita Group’)
ASX Code: A40
SGX Code: 40F
Appointment of Voluntary Administrators
Notice is hereby given that on 28 August 2019 the directors of the Alita Group resolved that the Alita
Group companies were insolvent or likely to become insolvent at some future time and that
administrators should be appointed to the Alita Group.

The boards of the Alia Group further resolved that Richard Tucker and John Bumbak of KordaMentha
Restructuring be appointed as Voluntary Administrators of the Alita Group pursuant to Section 436A of
the Corporations Act 2001 (Cth).

The appointments of the Administrators followed ongoing discussions between the Alita Group, the Alita
Group’s secured creditor and other key stakeholders.

The Administrators are currently undertaking an urgent assessment of the Alita Group’s financial
position and viability with a view to undertaking a restructure or recapitalisation. In this regard, we will
shortly be meeting with key stakeholders to discuss next steps, including measures to reduce the
ongoing monthly cash burn at the Alita Group’s operations.

We have also commenced discussions with the secured creditor concerning its objectives under a
potential restructure or recapitalisation proposal.

A further update in respect of the Alita Group’s operations and the restructure / recapitalisation process
will be released to the market in due course.

The contact details of the Voluntary Administrators are:


GXY recent ann

QUOTE
ACQUISITION OF SENIOR SECURED DEBT
FACILITY – ALITA RESOURCES LIMITED
Galaxy Resources Limited (ASX: GXY, “Galaxy” or the “Company”) announces that it has reached an agreement with a consortium
of lenders led by funds managed by Tribeca Investment Partners Pty Ltd (“Tribeca”) (collectively the “Lenders”) to acquire the senior
secured loan facility (“Facility”) provided to Alita Resources Limited (ASX: A40, “Alita”).

Pursuant to a Sale and Purchase Agreement and a Transfer Certificate, dated 27 August 2019, the rights, title and interest of the
Facility, with principal value of US$28.8 million, have been assigned and novated to Galaxy. The total amount assigned and paid,
including all accrued interest, fees and costs was US$31.1 million. The key terms of the facility are set out in Table 1.
Alita shares were placed into voluntary suspension from trading on the ASX on 14 August 2019. On 16 August 2019, Alita and the
Lenders entered into a standstill agreement (“standstill”) in respect of unremedied events of default on the Facility. The standstill
expires at 7pm AEST on Thursday, 29 August 2019.

Galaxy’s Chief Executive Officer, Simon Hay commented, “Acquisition of the Facility provides Galaxy with the flexibility of being the
secured lender to Alita as well as being the largest equity holder. As the senior, secured creditor Galaxy can work directly with all
stakeholders to examine the best possible reorganization options.”

Galaxy will utilize existing corporate debt facilities to fund the Facility acquisition.

Galaxy reminds investors that it will be holding an investor conference call at 9:00am AEST (7:00am AWST) on Friday, 30 August
2019. Please refer to the ASX announcement released on 23 August 2019, titled, “Half Year 2019 Results Conference Call,” for dial
in details.



From AFR article - https://www.afr.com/companies/mining/stone-...20190829-p52lvx
QUOTE
It remains to be seen whether Galaxy will seek to appoint receivers to come over the top of Korda Mentha.


https://www.shortman.com.au/stock?q=gxy
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 7 2019, 12:03 PM
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NON-CASH IMPAIRMENT
QUOTE
Galaxy Resources Limited (“Galaxy” or the “Company”) (ASX: GXY) advises that, as part of its preparation of the financial statements
for the half-year ended 30 June 2019, it has been undertaking a review of its inventory on hand at Mt Cattlin, capitalised Mt Cattlin
mine development costs attributable to the acquisition of General Mining Limited and deferred tax assets arising from capitalised tax
losses.

The review is ongoing and will be completed prior to the finalisation of Galaxy’s financial statements for the half-year ended 30 June
2019.

Based on current information, it is anticipated that the review will result in a non-cash impairment for the half-year ended 30 June 2019.
Galaxy estimates the impairment will be in the range of US$150 million to US$185 million
. When finalised and reviewed by the auditors,
the adjustment will be included in Galaxy’s financial statements for the half-year ended 30 June 2019, which are scheduled to be
released in late August 2019.

The adjustment arising from this impairment is a non-cash item and does not have any impact on cash-flow, operations or banking
covenants.

At 30 June 2019, Galaxy held cash of US$176.3 million, marketable securities of US$27.2 million and no debt.


Might hit $1.00 at this rate - SP currently $1.12



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jun 28 2019, 12:37 PM
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Posts: 6,401
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In Reply To: blacksheep's post @ Mar 14 2019, 12:46 PM

GXY gets a mention here - Australia's lithium export 'boom' underwhelms
https://www.afr.com/business/mining/austral...20190627-p521vb

Total short positions as at 21 June 2019 = 13.83%
https://www.shortman.com.au/stock?q=gxy
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Mar 14 2019, 12:46 PM
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Posts: 6,401
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GXY has today knocked the chicken stock (ING) and graphite miner (SYR) off top spot as the most shorted stock - Shortman's Top 100

Total short positions = 17.65% as at 8/3/19
https://www.shortman.com.au/stock?q=GXY

SP currently up 1.01% @ $2.00
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


blacksheep
post Posted: Feb 25 2019, 09:55 AM
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In Reply To: blacksheep's post @ Feb 22 2019, 12:11 PM

POSCO TRANSACTION COMPLETE
QUOTE
Galaxy Resources Ltd (ASX:GXY) (“Galaxy” or “the Company”) is pleased to advise that final settlement of the sale of a package of
tenements located on the northern portion of the Salar del Hombre Muerto to POSCO has now been completed, following the registration
of the tenement and usufruct transfers by the local Mining Court in Salta Province. All registrations for the tenement transfers in the
Catamarca Province relating to the POSCO transaction, were completed in December 2018. Galaxy will now receive US$271.6 million
(after US$8.4 million in withholding taxes was paid in November 2018) as follows:

• US$257 million consideration held in escrow plus interest accrued will be released by the Escrow Agent to Galaxy by Tuesday
26 February 2019; and

• US$14.6 million will be paid by POSCO directly to Galaxy by Friday 1 March 2019, now that registration of the usufruct transfers
has also been completed.

https://www.shortman.com.au/stock?q=GXY
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Feb 22 2019, 12:11 PM
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Posts: 6,401
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In a trading halt - "pending an announcement regarding the sale of a package of tenements located on the northern area of
the Salar del Hombre Muerto in Argentina to POSCO".



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Dec 31 2018, 12:58 PM
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And now
QUOTE
Galaxy Resources said it has received several offers from potential partners for its flagship Sal de Vida lithium project in Argentina.

Galaxy said in a statement that it will only proceed with a strategic partner “if the final terms of the relationship properly recognise the fundamental underlying value of Sal de Vida and the partner can add additional value to the project.”

It said it would continue to develop the lithium project in the short term.

Galaxy also said that it was in talks with engineering service provider WorleyParsons which it may appoint as its project management consultant...




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 28 2018, 10:08 PM
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Posts: 6,200
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QUOTE
On Tuesday, Galaxy announced a non-binding agreement to raise $US280 million ($380 million) through the sale of the northern portion of its Sal de Vida tenements to POSCO in late May and it told the market that the deal was running ahead of schedule earlier this month. And yet, such is the baked-in scepticism of the lithium bulls that the shorts were still left scrambling for coverage after the flagged deal was made binding on Monday.

Needless to say, POSCO is the quality of international investor that can be trusted to deliver on binding agreements so it would be fair to say that Galaxy will certainly get its money and very likely bank the synergies of aligned development of Sal de Vida that were promised in Tuesday's announcement.

Galaxy's plans to develop its southern share of Sal de Vida are well advanced and now seemingly well funded. But, outside of putting the finishing touches to the revised feasibility study that was delivered in May and that flagged a $US471 million project that included a $US31 million potash revenue stream, managing director Anthony Tse is busy marketing his project to potential partners.

According to Tse a long list of dozens has been whittled down to seven interested parties whose interest is sparked by a variety of different strategic needs.

"It is hard to pin down passports of backgrounds," Tse said on Tuesday. "But we have had the gamut of interested parties from end users to industrial materials companies to other industrial groups and other miners," he said.

Of the potential offered by productive alliance with his new Korean neighbour in Argentine lithium, Tse said: "We have exchanged a lot of ideas with POSCO and we recognise that both parties are playing the long game. "Where we have been talking a lot is about the opportunities for synergies in things like logistics, utilities and infrastructure. If it makes sense, if the cost of building them is one for us and the cost is one for them but the cost of investment in shared services is 1.6, then it makes obvious sense."

And what of the over-production thesis that feeds the bubble theory that sustains the lithium bears?

"We are aiming to produce 25,000 tonnes of lithium carbonate. The consensus estimates of demand in 2025 is 800,000 to 1 million tonnes per annum," a cool but ever so slightly irritated Tse explained. "To match likely future demand the industry needs investment of $US9-$US12 billion. Track what has been raised over the last few years in public and private equity and you will probably fall shy of $US4 billion. So where is the rest coming from?"

On the available evidence, that is not a problem that Tse need worry too much about given the maturity of the JP Morgan-run marketing of his stretch of Sal de Vida and the contribution POSCO is going to make to Galaxy's financial security.

"One of the things that is under appreciated about this sector is where the electric vehicle sector is going," Tse continued. "This is not just another normal cycle or growth curve. This is a fairly disruptive type of growth. The vast majority of the AEMs [automotive manufacturers] globally have some sort of electric vehicle strategy. "Around the world the emissions standards are getting tougher and tougher and the environmental controls are getting harsher. The existing manufacturers will not get by with just working on the old ICE [internal combustion engine] models. They are being pushed to change by governments and customers."
https://www.afr.com/business/revealed-the-s...20180828-h14mxf



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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