GXY, GALAXY RESOURCES LIMITED

[nipper]

And now

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...

[nipper]

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

[blacksheep]

In Reply To: blacksheep's post @ Jul 31 2018, 12:10 AM

Battery boom skeptics seen driving short holdings in lithium miners
Reuters | a day ago |
extract

euters calculations show that the short positions in Australian lithium miners Galaxy Resources and Orocobre, among the country’s most-shorted stocks, amount to some A$260 million, but that is dwarfed by short positions in New York-listed Albemarle totaling around $1 billion.

“Galaxy and Orocobre are arguably the highest quality, largest and the most liquid of the Australian-listed (lithium) names. This higher market turnover and institutional ownership makes them more vulnerable to short selling, “ said Canaccord analyst Reg Spencer.

Canaccord has a buy rating on both miners, but acknowledged a poor pricing environment could further weigh on shares.

Galaxy and Orocobre have said that price weakness was largely seasonal and demand should pick up in the second half.

Falling lithium prices could slow development of notoriously complex brine projects, where lithium is effectively evaporated out of saltlake deposits. Orocobre suffered repeated delays and investors see potential for similar drags on Galaxy’s Argentine project, one fund manager said.

Shares in Galaxy are also being held back until a preliminary deal to sell some Argentine mining leases to steelmaker POSCO is signed off. The deal is expected to close next month.

Ben Cleary, portfolio manager at Tribeca Investment Partners in Singapore, expects POSCO to close the $280 million deal with Galaxy given its new focus on battery raw materials.

“I don’t see much risk of POSCO not closing the transaction…I would say the potential for a short squeeze on completion is high.”

http://www.mining.com/web/battery-boom-ske...lithium-miners/

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[blacksheep]

SP has fallen to $2.89.

Shorts have been busy - 3 notable alerts in last 4 trading days. Current short position @ 24 July = 14.75%
https://www.shortman.com.au/stock?q=GXY

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[blacksheep]

In Reply To: blacksheep's post @ Apr 30 2018, 02:54 PM

GALAXY AGREES TO SELL NORTHERN TENEMENT PACKAGE AT SAL DE VIDA FOR US$280 MILLION TO POSCO

Highlights
• Non-binding agreement executed with POSCO to sell a package of tenements in the northern basin of the Salar del
Hombre Muerto
• Galaxy retains 100% ownership of all tenements in the southern basin
• Cash consideration of US$280 million for approximately 1.58 million tonnes lithium carbonate equivalent (“LCE”) of
JORC compliant measured & indicated resources and 2.54 million tonnes of LCE of JORC compliant total resources
• Sal de Vida Project now contains approximately 4.09 million tonnes LCE of JORC compliant measured & indicated
resource and 100% of the previously announced reserves of 1.14 million tonnes LCE
• Funds available to Galaxy to progress Sal de Vida Project development in Catamarca Province

https://www.shortman.com.au/stock?q=gxy

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[blacksheep]

Had to respond to media speculation in the Australian suggesting - "Galaxy to sell $460m lithium stake"

Response to Media Speculation
Galaxy Resources Limited ("Galaxy" or the "Company") (ASX: GXY) notes the media speculation today regarding the Company’s Sal de
Vida lithium and potash brine project in Argentina (“Sal de Vida”).

Galaxy has appointed J.P. Morgan Australia Limited as its financial advisor to evaluate strategic options for Sal de Vida.
As previously advised to the market, the Company is currently in discussions with a range of parties in relation to potential offtake and
strategic partnership opportunities. These discussions are preliminary in nature and there is no certainty as to whether any definitive
transaction will eventuate from them. Galaxy will keep the market informed of any material developments in line with its continuous
disclosure obligations.

The Company released a Revised Definitive Feasibility Study for Sal de Vida on 22 August 20161, which supports a low cost, long life
project with robust economics. This revised DFS estimates:

 A post-tax net present value of US$1.416 billion at an 8% discount rate (US$1.043 billion at a 10% discount rate).
 Sal de Vida having the potential to generate average annual revenue of US$354 million and average operating cash flow of US$273
million per annum before tax (net operating cashflow of US$182 million after tax).
 Average operating costs of US$3,369 per tonne before potash credits and US$2,959 per tonne to produce battery grade lithium
carbonate.
 A total capital cost of US$376 million.

The Company confirms that all the material assumptions underpinning these estimates continue to apply and have not materially changed.
Galaxy expects to announce the results of an updated Revised Definitive Feasibility Study on Sal de Vida during May 2018, which shall
include updated economics for the project.

Still heavily shorted - #4 on Shortman's Top 100 - Current position 23rd April, 2018 15.11%
https://www.shortman.com.au/top

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[blacksheep]

In Reply To: blacksheep's post @ Feb 3 2018, 07:28 PM

SP up 6.54% today @ $3.42/share currently.

Some speculation in the media re a lithium deal with BMW maybe helping the SP along? Whether or not it has legs time will tell

BMW may sign deal for Galaxy lithium
The Australian-13 hours ago
Demand for cobalt, nickel, manganese and graphite, also used to make cars, is also said to be high. Galaxy's Sal de Vida deposit is one of the world's largest undeveloped lithium brine deposits, with strong expansion potential.

https://www.shortman.com.au/stock?q=gxy

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[OZGAZ]

In Reply To: blacksheep's post @ Feb 3 2018, 07:28 PM

True Blacksheep and I will keep the powder dry come Monday and conduct some fence watching to see what pans out on the DJ

[blacksheep]

In Reply To: OZGAZ's post @ Feb 2 2018, 10:19 PM

Perhaps, but with the Dow Jones falling 600 odd points on Friday I think our stocks are in for a bit more pain come Monday- I may be wrong. Also the lithium story has come off the boil somewhat.
https://www.bloomberg.com/news/articles/201...op-markets-wrap

[OZGAZ]

Must be getting close to oversold