Creat Res Ld Share Discussion Threads

[rec0very stock] 03/8/2013 22:31

Acta let's agree to agree. we both agree that we do not know if CRHL have taken up their rights. All the reasons you give why they would have, turn into opposites if they have not.

GXY will attempt to place any spare shares. It is therefore possible for Creat Group to take these directly ie not via CRHL. Creat can put CRHL into liquidation and take all the assets (GXY shares) any time they like. A bombed out AIM micro cap is of no value to Creat Group. Watch this space.

Dontshootthemessenger,

If you do not have anything to say about CRHL or GXY, go away. Your mindless personal attacks on Acta add nothing to this board. Nobody here cares about MBW or any other company, if they do they will discuss that company on its own board.

[theivorytower] 03/8/2013 18:39

Well argued Acta_topup.
I absolutely agree with you and it is why I am also invested in this company :)

[acta_topup] 03/8/2013 13:47

we're not talking about bombed out AIM microcaps we're talking about the value of Galaxy Resources to the Creat Group. Let's just agree to disagree

[rec0very stock] 03/8/2013 12:32

You have a very naive view of how bombed out AIM micro caps are viewed.

Time will tell

[acta_topup] 02/8/2013 22:53

The debt is to the Creat Group! CRHL is majority owned by the Creat Group. The Creat Group are bankrolling the working capital of CRHL until at least Summer 2014 (and likely this will be extended again).

The more relevant question is whether the Creat Group has any use for Galaxy Resources. Based upon a large number of factors (including many which I believe you will have taken into account when buying into the RI) I believe YES. Why do you think that the Creat Group will just sit back and allow their once substantial holding in GXY be diluted to oblivion? They have considerably more to lose than you, and contrarily - considerably more potentially to gain.

They have supported GXY to the tune of 10s of millions of dollars at a far higher shareprice than now. Lithium production is increasing on a month on month basis at Jiangsu and the company COULD be about to turn around. The reasons underlying their original investment still stand, and at this rock bottom price may be considerably more attractive.

Meanwhile the AIM listed investing vehicle of the Creat Group remains, and based on their original enthusiasm to invest in the resource sector through this vehicle coupled with their appetite to continue to support it for at least another 12 months I see no reason why they would not leverage their considerable experience and contacts to make something of it. A 3DR -> AFRI type reincarnation with similar 10 bagging potential is eminently POSSIBLE irrespective of what happens at GXY.

That is why, even in the worst case and unlikely scenario that CRHL do get diluted out of GXY, the company still has considerable scope to reinvest in other oportunities that may create significant shareholder value (at these levels). I always feel that there is every chance CRHL will place new shares to Creat at a substantial premium to the prevailing shareprice thus allowing further investment. The Creat Group can set the price as they see fit.

[rec0very stock] 02/8/2013 20:47

Time will tell. GXY shares are due to start trading on 8 Aug and there should be an announcement about the Rights Issue take up before then. The Issue needed to be taken up by 29 Jul so there is not "plenty of time to hear of a share issue that would fund CRHL taking up its tranche of shares in the GXY offer"

Why is a bombed out, debt ridden AIM micro cap that has tiny volumes of any use to Creat Group?

Do you at least agree that if the rights have not been taken up then it spells the end for CRHL?

[acta_topup] 02/8/2013 15:42

This is your opinion. It is not mine.

Creat IS committed to CRHL. From the half-yearly report: "On 15 March 2013 the Company received an undertaking from Creat Group in that, for the purposes of assisting the company to achieve its working capital forecast to 30 June 2014:

· Creat Group will continue to provide further funding to CRHL as required with interest rates based on market interest rates; and

· Creat Group will not call for or cause repayment of any loans or convertible notes, including the payment of accrued interest on such loans or convertible notes, held by Creat Group at 31 December 2012 or entered/acquired by Creat Group subsequent to that date, and interest that will be due and payable on such loans or convertible notes through to 30 June 2014."

This doesn't sound like a company that has given up on CRHL.

Creat IS committed to GXY. "Galaxy Resources Ltd (ASX: GXY) ("Galaxy" or "the Company") advises that it has established a Special Management Committee, as an advisory committee reporting to the Galaxy Board, consisting of interim Managing Director Anthony Tse, Non-executive Director Xiaojian Ren, Galaxy executive Charles Whitfield, and Martin Rowley.

Mr Ren is a co-founder, Executive Director and the CEO of Creat Group. He has significant experience in the China banking and finance sector having previously served with the Agricultural Bank of China at the Jiangxi Provincial level as well as the corporate headquarters. The Creat Group was established in 1992 and has made some significant investments in leading corporations across China, including Henan Pinggao Electric (listed on the Shanghai Stock Exchange), Yantai North Andre Juice (a world leading producer of fruit juice concentrate and listed on the Hong Kong Stock Exchange), Shanghai RAAS (a leading blood products manufacturer and listed on Shenzhen Stock Exchange), as well as other manufacturing, real estate and nonferrous metals and mining companies."

The Creat Group is not abandoning its mining interests. The CRHL vehicle clearly remains a useful entity for it to further pursue its objectives. Creat has representation on the GXY board. In retrospect the sale of shares in GXY at a substantial premium to the offer price was a coup for CRHL. It is a shame that they couldn't "trade" more of these shares.

There is plenty of time to hear of a share issue that would fund CRHL taking up its tranche of shares in the GXY offer.

I think that you are being a bit disingenuous in your comments. You may be correct in your hypothesis. Or you may not be. In my view the evidence does not support your arguments. We shall see.

[rec0very stock] 02/8/2013 13:43

Your inability to conceive of reasons says a lot about you.

Here are some.

CRHL is broke. You are right that for Creat to have taken up their rights they would have had to do it through CRHL. For CRHL to have taken up their rights they would have needed a significant injection of cash prior to the closure date. (my rights are in my account and the money I used to buy them is no longer in my account).

There has been no announcement of any funds being transfered to CRHL.

There has been no announcement of CRHL increasing the number of GXY shares it holds.

Both of these are material events and should have had RNSs.

CRHL had been selling GXY shares to keep themselves afloat. If Creat were so committed to keeping their GXY holding they would have lent CRHL the money. CRHL used most of the money raised from selling 10th legion to repay Creat - Creat want their money back. There is nothing tangible to suggest Creat are commited to CRHL, indeed there are plenty of indications that they view the whole CRHL thing as a ghastly mistake (they took over Zeehan Zinc's listing. Zeehan Zinc was a ghastly mistake as is anything else that has ever had anything to do with Malcolm Bendall).

The GXY rights issue was massively under subscribed. It reached its minimum with only a day or so to spare. Some major holders have taken up their rights some have not. GXY named some share and bond holders who were supporting the issue, Creat was not named. I hope I have not goofed by taking up my rights and taking the same again as additionals. If I have that is my fault.

To be certain we may have to wait until the full results of the RI are announced by GXY. However if CRHL have not taken up their rights - likelihood is high and growing every day CRHL does not announce to the contrary, it will confirm that Creat has no real interest in CRHL or GXY. In this instance CRHL will die.

[acta_topup] 02/8/2013 08:18

by the way - excellent ramp up in production at jiangsu to over 670 tonnes in July (12% increase over june), with a corresponding increase in sales. GXY and Tse now finally starting to deliver.

[acta_topup] 02/8/2013 08:16

The Creat group controls CRHL. The Creat Group's shareholding in GXY is held through the CRHL vehicle. Essenrially you are suggesting that the Creat Group will allow their holding of GXY to be massively diluted. I believe that to be highly unlikely, especially in the context of what we have heard from the GXY board re: large shareholders supporting the offer. Creat's further investment in GXY would likely be through CRHL - I cannot conceive of a reason why this would not be the case.

[rec0very stock] 01/8/2013 19:24

Why do you think CRHL even exercised their rights? The Rights Issue was significantly under subscribed. I took up all my rights and asked for the same again as additionals - I got everything I asked for, which indicates there were plenty of holders who did not take up their rights. The only way CRHL could have taken up all of theirs is if Creat Group pumped more money into them - this would have been announced before now if they had. I think it is therefore most likely that they have either only taken a portion or maybe none at all. My new shares and 3 for every 2 warrants are in my portfolio right now. If CRHL do not announce tomorrow what they got, then the assumption must be they did not take up any of their rights.

I do not hold CRHL and never have, I bought Galaxy shortly before they suspended. The reason why I took up all my rights and then the same again is I could see how horribly diluted I would be if I didn't. I fully expect GXY shares to trade around the RI price of 8c for quite some time. I am hopeful they will recover to around 30c much further down the line. CRHL bought at something like $1.4 with money they owe to Creat with interest. If they have not taken up all their rights, then they will never get back above water with them. The only asset CRHL has is its GXY shares.

[acta_topup] 31/7/2013 12:37

From the GXY quarterly report:

Operations
Jiangsu Plant
Operational Performance
Q2 2013 YTD
Production (tonnes) 1775 2444
Delivery (tonnes) 1661 2124

Jiangsu Plant Lithium Carbonate Production
Lithium carbonate production at the Jiangsu Plant continued to increase during the Quarter following recommencement of operations in February 2013.

The Jiangsu Plant produced 1,775 tonnes of lithium carbonate from April to June. This represents an 85% increase in production over the output of the previous three months, and quality performance continues to be excellent. 100% of the battery grade product met the range of product specifications in June, while the rate for the Quarter was 99%. The customer ontime delivery rate was 100% for the period. Galaxy and the Jiangsu team have commenced a thorough review and assessment of ways to accelerate the ramp-up process to boost production towards full capacity.

Safety
There were no LTIs (Lost Time Incidents) during the Quarter. There was one MTI (Medical Treatment Incident) reported in July 2013.

Plant Certification Process
The Jiangsu Plant completed the final round of external audit for ISO9001 (Quality)/ ISO14001 (Environment)/ OHSAS18001 (Occupational Health and Safety) management systems by BSI (British Standard Institute) in April 2013, with resulted in full compliance. The ISO9001 Certificate was awarded to Jiangsu
Plant on 18 May 2013. The ISO14001 & OHSAS18001 certificates will be issued in August 2013. The Jiangsu Plant has received approval for safety and
occupational health from the Suzhou Safety Bureau and Jiangsu Province Safety Bureau following a satisfactory on-site assessment. A final environmental assessment was completed, with the Company now waiting for the approval document from the Administration of Environment Protection of Jiangsu
Province. This will conclude the necessary project completion regulatory approvals.

Sal de Vida (70%)
Permits Update
Galaxy's Sal de Vida team completed a review of the Environmental Impact Study as requested by the Catamarca Mining Secretary. Galaxy responded to several questions from the Secretary's technical staff addressing hydrogeology, social
and economic impacts and engineering. The Mining Secretary approved the revised study but then issued it to further departments for review and comment around environment, flora/fauna, archaeology and water, extending the public
consultation period for the study by an additional 30 days. Galaxy will request a definitive schedule from the Provincial authorities. The team is also responding to similar questions from the Salta Mining Secretariat. With the project located across the border between the Salta and Catamarca provinces,
the Company needs environmental approval and construction and operating permits from both provinces.

Marketing & Sales
Lithium Carbonate Sales
Total lithium carbonate sales during the Quarter were 1,661 tonnes of technical and battery grade product. Q2 sales increased three fold from Q1 primarily due to the increased production capacity, new battery grade customers and
seasonal demand.

Product Qualification Continues
The product qualification and approval process completed with some of the cathode materials manufacturers in the previous quarter contributed to the increased sales. The approvals and qualification for battery grade lithium
carbonate takes a significant amount of time, ranging between 6 months to a year and beyond for more stringent approvals processes, incorporating a long line of approvals down the supply chain. With production and quality increases at the Jiangsu Lithium Carbonate Plant in China, Galaxy continues to build its sales of the battery grade lithium carbonate.

Lithium Carbonate Demand
Demand continues to experience lower-than-forecast growth due to a slowing in the uptake of electric vehicles. Cathode production for batteries used in mobile, laptops and other devices is seeing a shift towards China and Korea from Japan, and remains relatively strong.

Chinese demand for technical grade product in the current quarter (Q3) is expected to be lower or steady from the previous quarter in glass ceramics and other industrial applications due to the overall global economic slowdown. In addition, two Chinese brine producers recommenced production and the
supply of technical grade will be sufficient to meet the current demand.

Battery sector demand was higher than industrial applications in Q2 and is forecast to remain at similar levels, only to be impacted marginally, in the current quarter due to seasonal changes in demand.

EPCM Tender Process
Galaxy received three EPCM proposals for Sal de Vida detailed engineering, design and construction. The proposals were received at the end of June 2013 from three groups. The tenderers all chose to enter into partnerships to address this specialized brine extraction and chemical processing project.
The proposals received are very thorough. Working between Argentina, Canada and Australia, Galaxy has scheduled 45 days for the review.

Test Work Programs
With reduced winter evaporation rates, the test evaporation ponds transfer s were adjusted to maintain output concentration near the target 2.2% Li. Other test work, including magnesium and calcium extraction by precipitation, solvent
extraction, ion exchange and bicarbonate purification were put on hold awaiting the permit (RENPRE) for reagent handling and storage. That permit is now in hand and process test work can proceed in the third quarter.

Mt Cattlin (100%)
Minor activities related to the closure of the Mt Cattlin operations and demobilisation continued during the Quarter.

EV Sector
In the EV sector, US-listed EV manufacturer, Tesla Motors, achieved profitability for the first time in its 10 year history on sales of 4,900 battery-powered Model S EVs in Q1 2013. Tesla says it is seeing strong growing global demand for one of its particular car models and raised its 2013 sales target to 21,000 vehicles. In addition to Tesla, all major car companies are
beginning to aggressively market their EVs to meet the increased competition.
According to Bloomberg, H1 2013 EV sales in the US grew by 23% as compared to same period in 2012 to 287,000 units, which includes conventional hybrids. The sales of EVs in the US as per InsideEVs were 40,647 units in first half of 2013, 243% above same period in 2012. Chinese EV sales were 5,889 units
in H1 2013, a 42.7% increase from H1 2012 according to CAAM (China Association of Automobile Manufacturers).

The Renault-Nissan Alliance total EV sales reached 100,000 units in June 2013 following commencement of marketing in late 2010. Carlos Ghosn, CEO of the Alliance in a June 2013 press conference in France stated that Alliance's unmatched commitment to electric vehicles, "is not a bet, it is a certainty."

E-Bike Sector
According to Navigant Research's recent report 'Electric Bicycles', growth of e-bikes in Europe is set to continue. The market in Europe is on track to grow to between 1.0 million and 1.2 million sales in 2013. Additionally, European Cycling Federation (ECF) data shows that between 2010 and 2011, ebike
sales grew by 22% while car sales declined by 2%. North America is another important e-bike market and is growing at a steady pace. All these e-bikes use lithium batteries. China produces and sells between 25 million to 30 million e-bikes pa predominantly using lead acid batteries, (approx. 96%), however, the conversion rate to lithium batteries is increasing and forecast to reach 15% by 2015.

Various sources indicate demand to grow rapidly between 2015 and 2020. The demand from this sector is very encouraging for the long term growth of the lithium battery and materials sector. The Jiangsu Plant has a nameplate capacity of 17,000 tpa of battery grade lithium carbonate. In comparison, other Chinese lithium carbonate producers' current capacities range from 2,000 tpa to 7,500 tpa of battery grade product. Galaxy's large capacity underpins future expansion plans of global lithium cathode producers and their customers, the battery makers.

Pricing
According to Asia Metal Pty Ltd, technical grade product average prices in the Quarter fell from US$6,560/t to US$6,240/t (inclusive of VAT) due to the recommencement of supplies from two Chinese brine producers. The average prices
for battery grade lithium carbonate in China remained stable for most of the Quarter but dropped marginally from US$6,960/t to US$6,880/t (inclusive of VAT) towards the end of the period.

[acta_topup] 31/7/2013 12:21

there were different threads for and against the company. plenty of people posted negative comments - but they had to be intelligent or offer something new to the debate

[dontshootthemessenger] 31/7/2013 12:13

yeh yeh that is why you ran a censored bull only thread and tried to stifle the bear/realist viewpoints

[acta_topup] 31/7/2013 12:11

I am the largest PI holder (by far) and was in close contact with Rory Stear - not that it did me any good ultimately. And I don't ramp anything - people can make their own minds up about what they invest in.

[dontshootthemessenger] 31/7/2013 12:06

re MBW

shameless

after ramping it for months with claims of a 'direct line' to the CEO and claiming to be largest shareholder !


Acta_topup
30 Jul'13 - 12:17 - 8727 of 8734 0 0

Yes very sad. Kind of seemed inevitable despite all the "talk". I moved on some time ago and I hope everyone else can.

[dontshootthemessenger] 30/7/2013 11:55

acta is worried because he wants to sell to make up for his mbw losses

[dontshootthemessenger] 30/7/2013 11:53

you've been quiet acta

mbw lol