Creat Res Ld Share Discussion Threads

[acta_topup] 13/5/2013 14:31

Quite a few little buys - but where are the big guys? Stock is tight though - maybe that's why

[acta_topup] 13/5/2013 09:06

For people who have noticed the recent trend and are thinking about making their first purchase:

Broker valuation:

Price increases, project development and general traction in the market for lithium stocks have led to a number of lithium peers outperforming Galaxy in recent months. Consequently Galaxy looks significantly undervalued at 11.3x 2013E P/E, 5.6x 2013E EV/EBITDA and 4.8x 2013E P/CF compared to the producer peer group average of 16.7x P/E, 10.2x EV/EBITDA and 13.8x P/CF. Using the producer peer group average multiples supplies us with a value of A$0.92/share for Galaxy's operational assets. We value Galaxy's development assets (Sal de Vida/ James Bay) separately. Using a peer group analysis of listed lithium exploration and development companies the EV weighted average peer group EV/Total Resource is US$66.88/tonne of in-situ lithium and EV/Total Adjusted Resource is US91.34/tonne of adjusted in-situ lithium. Applying these metrics to Sal de Vida and James Bay's total resource contained lithium and adjusted resource lithium figures we come to a valuation of A$0.17/share for the 70% holding in Sal de Vida and A$0.10/share for James Bay. Combining our valuations for Galaxy's operational and development assets we arrive at an overall valuation of A$1.19/share.

[acta_topup] 13/5/2013 09:02

On the up. Could test 1p this week. Exciting times (finally) at Galaxy Resources

[sniffer78] 12/5/2013 13:25

If the Creat Group don't increase there holding or take a controlling stake, this can be seen as positive as well. That to me means they are happy with the outlook and see their investment doing very well in the future, with no need to worrie. Also CRHL are now on low cash burn, I have been in contact with MH at CRHL HQ for couple of months now. $1.6 million in the bank enough to last us a year hmmmmmmmmmmmm I wonder what GXY share price will be in 12/13 months ;-) Also we are the Creat Groups investment vehicle now. CRHL still on the lookout for the right investment as of 2 weeks ago, don't forget new investment update could happen anytime. ATB

[rhuvaal2] 10/5/2013 21:06

I agree, wonderful things could happen here but I am not putting a figure on it.

[acta_topup] 10/5/2013 15:51

Sold too soon mate but profit is profit. Negotiated trade only to buy in any volume.

[barnetpeter] 10/5/2013 11:16

I sold a few yesterday and was suprised to get as good a price as I did. The 0.2 lows seem a long time ago now....who told me I was an idiot buying at 0.3 etc?

[acta_topup] 10/5/2013 09:38

To summarise:

Essentially a 100% production upgrade since last update. Cash-flow positive. Aiming for over 30 tonnes per day at $6,500 per tonne = $5.85million/month next month. With full ramp up scheduled to produce 45/50 tonnes per day lithium carbonate at $6.500 per tonne = $9.75million/month revenue.

[acta_topup] 10/5/2013 09:30

ASX ANNOUNCEMENT / MEDIA RELEASE

Perth, Australia

10 May 2013

JIANGSU APRIL PRODUCTION UPDATE

Highlights

 650 tonnes of lithium carbonate produced in April (excludes one week scheduled maintenance)

 Average daily production rate of 28 tonnes, representing 60% of Plant's design output (vs 31% in March)

 Sales of 575 tonnes (revenue A$3.5 million, inclusive of VAT) recorded for the month

 April Jiangsu operating costs (excluding sunk ore costs) was around A$2.5 million

 Jiangsu Plant is China's second-largest lithium production facility at current output rates

Galaxy Resources Ltd (ASX: GXY) ("Galaxy" or "the Company") advises that production at its Jiangsu Lithium Carbonate Plant ("Jiangsu" or "the Plant") in China totalled 650 tonnes in April 2013. Average daily production, excluding scheduled outage in the month was 28 t/day, representing 60% of the Plant's design output. April's figures include three weeks of production and exclude a one week scheduled outage for improvements and modifications.

April's production marks a significant improvement on the previous month, where Galaxy recorded total production of 425 tonnes, with average production rates of 14 tonnes a day (31% of design output). Operations at Jiangsu re-commenced in February 2013.

Product sales in April totalled 575 tonnes of battery and technical grade product. Sales revenue was A$3.5 million (including VAT). Production cost for Jiangsu, (excluding sunk ore costs) was around A$2.5 million for April, which means on a purely cash inflow and outflow basis, the operation generated positive inflows for the month.

Galaxy Resources Managing Director Iggy Tan said: "We are pleased with the recent performance of the Jiangsu Plant and the generation of positive cash inflows. At current production rates, Jiangsu ranks as the second largest lithium carbonate production facility in China. Equally, we are encouraged by the increase in product sales and are working hard to continue to drive the ramp-up of our business."

The Jiangsu Plant is designed to produce 17,000 tonnes per annum, which would make Galaxy the largest lithium carbonate producer in China and the largest battery grade (99.5% purity) lithium carbonate producer in the world.

--ENDS--

[acta_topup] 10/5/2013 09:27

Juicy buy over 500K

[acta_topup] 09/5/2013 12:54

Hotcopper poster Kacy

Look at the up side. The share price currently has risk factored in. If the Korean Consortium proceeds with the JV deal and takes a 20% share in GXY and commences buying GXY's lithium carbonate for its EV batteries, this will both derisk GXY and cash it up without requiring a single cent from its existing shareholders. It looks like LG Chem is about to become the world's largest lithium battery producer through its EV battery supply deals with GM, Ford, Renalt and others. If LG Chem (KC) owns 20% of GXY and 30% of the Sal de Vida project then GXY is where it is going to prefer to buy its Lithium Carbonate from. They will probably want Lithium chloride, lithium hydroxide and lithium cathodes also from the Jiangsu plant to take advantage of the low manufacturing costs in China. Looks like we had better ramp up the plant, add more product lines, get Sal de Vida constructed and commence making money -> 2 x the current market cap every year. More when the EV market picks up steam. And lets not forget China. They are probably now fighting over who gets all GXY's lithium carbonate production!

[acta_topup] 07/5/2013 08:13

Courtesy of our well-researched friend at LSE:

16:51 06/05/2013[sniffer78] Mainshed

Very strange for it to be halted this long due to cap raising, unless the $20 million has turned into $50 million to help move Sal de Vida forward quicker. After halt production figures for May will be due and imo will be around $7 million for the month, with no blips. Galaxy is finally producing revenue and ramping up month on month, there is a chance now they are ripe for the taking but at what price, Rockwood are watching and waiting




14/12/2012

The alternatives to Canada Lithium, in Khan's view, wouldn't work at all or as well for Rockwood. He noted that the lithium division of FMC might work for Rockwood, but said it is apparently not for sale. Then there is another producing junior, Galaxy Resources, which has modest lithium carbonate production in Australia along with advanced exploration assets in Quebec and processing facilities in China. But Khan was less excited about Galaxy, pointing to the fact it has had some production ramp-up issues Of course, you could also argue that Rockwood, were it truly hungry, could easily pull off a couple takeovers at the same time at this lower level of the lithium producing playing field, or that it may take another tack entirely, moving on earlier stage projects instead.

Indeed, it may still be worth considering Galaxy Resources given it holds a significant asset in China - a 17,000 tonne per annum lithium carbonate processing plant. That too, it can be argued, would give Rockwood a greater foothold in Asian markets. 

[acta_topup] 07/5/2013 08:05

Very interesting moves afoot at Galaxy Resources. What could be behind such a protracted suspension in Oz? Something pretty major IMO

[sk02457] 06/5/2013 19:55

VOLUNTARY SUSPENSION EXTENSION REQUEST
Galaxy Resources Ltd ("Galaxy" or "Company") refers to its request for a trading halt on 26 April 2013 and subsequent
request on 30 April 2013 for trading in its securities to remain in suspension.
In accordance with ASX Listing Rule 17.2, the Company advises that:
 it is seeking the extension to the voluntary suspension pending an announcement relating to the finalisation of the
capital raising/financing of no later than pre-open market Tuesday 21 May 2013;
 the event the Company expects will end the voluntary suspension is an announcement by Galaxy relating to the
finalisation of the capital raising/financing;
 it is not aware of any reason why the request for the extension of the voluntary suspension should not be granted;
and
 it is not aware of any other information necessary to inform the market about the suspension.
Yours sincerely

[acta_topup] 02/5/2013 13:44

Down on zero trades

[rhuvaal2] 01/5/2013 19:16

sniffer = am sure you're quite correct in every way, just explaining how my investment stacks up: I know, of no value to others whatsoever :)

[theivorytower] 01/5/2013 18:21

Hi rhuvaal2

Trading at half the value of investment in GXY and supported by parent Creat Group...? Dr Zheng is no fool when it comes to investments... (China Outstanding Private Technology Industrialist, China Outstanding Private Entrepreneur, etc.)
I am patiently awaiting developments.

o/t nearly time for another meet?

[sniffer78] 01/5/2013 16:48

Totals: Top 20 holders of FULLY PAID ORDINARY 662,957,135 99.35
Total Remaining Holders Balance 4,319,539 0.65
As at 18 April 2013

Note: Pursuant to the CRHL Constitution a shareholder is a party registered on the Australian registry who has been provided with the share certificate by the Company or Computershare as its agent. Only a party listed on the Australian registry is a legal shareholder. As the Company's shares are traded on the London Stock Exchange's AIM, Computershare maintains a Depositary Interest (DI) service in the UK (where "Computershare Clearing Pty Ltd (UK)" is the legal owner) and maintains a register of the beneficial interests of investors. The DI structure allows intermediaries and investors to trade in the Company's securities while settlement is effected electronically in the CREST system. DI's held by Computershare Clearing Pty Ltd (UK) are designated by "UK".

[rhuvaal2] 01/5/2013 09:44

As previously, I should be number 6 in your list.
This share could indeed get interesting..

what say you, over at the ivory tower ?

[sniffer78] 30/4/2013 21:01

Totals: Top 20 holders of FULLY PAID ORDINARY 662,957,135 99.35

Total Remaining Holders Balance 4,319,539 0.65

Since the 18/04/2013 there has been 5.1 million buys and 1.5 million sells.

this could get interesting ATB

[acta_topup] 30/4/2013 17:37

Still very much under the radar. Stock is hard to come by

[acta_topup] 30/4/2013 08:19

Galaxy suspended till 7th May - sonething big definitely cooking

The fact is that CRHL is currently priced to go bust, but actually the Creat Group has guaranteed to support the company until at least June 2014! Fear and small PIs selling up have driven the shareprice into the ground. But it looks like the re-rating is now just starting. We should be trading over 2p easily, and with GXY takeover rumours growing apace there is considerable scope to move beyond this back to a 4p+ trading range

[acta_topup] 29/4/2013 14:49

Agree with you there. Long term - buying GXY is exactly what they should be doing.

Re: the shareprice - having to pay 0.85p for volume.