Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Galaxy reports record production



    --  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

PERTH, Australia, Oct. 11, 2013 /CNW Telbec/ - 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 
weeklong 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," 
said Mr Tse.

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.

About Galaxy (ASX: GXY)

Galaxy Resources Ltd ("Galaxy") is an Australian-based global lithium company 
with lithium production facilities, hard rock mines and brine assets in 
Australia, China, Canada and Argentina. The Company is a lithium producer 
listed on the Australian Securities Exchange (Code: GXY).

Galaxy has built an advanced and fully-automated Lithium Carbonate production 
facility in Jiangsu Province, China ("Jiangsu Plant"). The Jiangsu Plant has a 
name-plate capacity of 17,000 tpa, is primarily focused on producing battery 
grade lithium carbonate, and is aiming to become the largest producer in the 
Asia Pacific region and the fourth largest in the world.

Galaxy is currently advancing plans to develop the Sal de Vida Lithium and 
Potash Brine Project ("Sal de Vida") in Argentina, which is situated in the 
Lithium Triangle, a region where Chile, Argentina and Bolivia meet, and 
presently accounts for 60% of global lithium production. Sal de Vida has 
excellent promise as a future low cost production facility.

The Company also owns the Mt Cattlin Spodumene Mine near Ravensthorpe in 
Western Australia and the James Bay Lithium Pegmatite Project in Quebec, 
Canada.

Lithium compounds are used in the manufacture of ceramics, glass, electronics 
and are an essential ingredient in producing battery materials such as cathode 
and electrolyte, in the manufacture of long life lithium-ion batteries, which 
are used in consumer electronics, power tools, electric bikes, hybrid and 
electric vehicles. Anticipating the growing demand in coming years, Galaxy is 
positioning itself to become a major producer of lithium products.

Caution Regarding Forward Looking Information.

This document contains forward looking statements concerning Galaxy.

Forward-looking statements are not statements of historical fact and actual 
events and results may differ materially from those described in the forward 
looking statements as a result of a variety of risks, uncertainties and other 
factors.  Forward-looking statements are inherently subject to business, 
economic, competitive, political and social uncertainties and contingencies.  
Many factors could cause the Company's actual results to differ materially 
from those expressed or implied in any forward-looking information provided by 
the Company, or on behalf of, the Company. Such factors include, among other 
things, risks relating to additional funding requirements, metal prices, 
exploration, development and operating risks, competition, production risks, 
regulatory restrictions, including environmental regulation and liability and 
potential title disputes.

Forward looking statements in this document are based on Galaxy's beliefs, 
opinions and estimates of Galaxy as of the dates the forward looking 
statements are made, and no obligation is assumed to update forward looking 
statements if these beliefs, opinions and estimates should change or to 
reflect other future developments.

Not For Release in US

This announcement has been prepared for publication in Australia and may not 
be released in the U.S. This announcement does not constitute an offer of 
securities for sale in any jurisdiction, including the United States, and any 
securities described in this announcement may not be offered or sold in the 
United States absent registration or an exemption from registration under the 
United States Securities Act of 1933, as amended. Any public offering of 
securities to be made in the United States will be made by means of a 
prospectus that may be obtained from the issuer and that will contain detailed 
information about the company and management, as well as financial statements.

SOURCE Galaxy Resources Limited

Corporate    Andrew Meloncelli  Company Secretary Galaxy Resources Ltd    Tel (office): +61 (0) 8 9215 1700    Email: ir@galaxylithium.com  

Media Contact    Shane Murphy FTI Consulting Tel (office): +61 (0) 8 9485 8888 Tel (mobile): + 61 (0) 420 945 291 Email: shane.murphy@fticonsulting.com

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/October2013/10/c9067.html

CO: Galaxy Resources Limited NI: MNG CHM FIELD

-0- Oct/10/2013 18:10 GMT

Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement