Galaxy's Jiangsu Plant produced 350 tonnes of lithium carbonate in
August - ahead of ramp up schedule
Sales for August totalled 268 tonnes, generating revenue in excess of
A$1.6 million (RMB10.5 million)
Initial battery grade lithium carbonate sales commence
Over 30 potential customers provided with battery grade samples for
Product continues to meet all battery grade specifications on impurity
Plant achieving purity of 99.5% and above as required by battery cathode
Company remains on track to achieve positive operational cash flow at
Jiangsu in Q1 2013
PERTH, Australia, Sept. 6, 2012 /CNW Telbec/ - Lithium producer Galaxy Resources Ltd (ASX: GXY) ("Galaxy" or "the
Company") advises that lithium carbonate production from its wholly-owned Jiangsu
Lithium Carbonate Plant ("Jiangsu" or "Jiangsu Plant") totalled 350 tonnes (25% of design output) in August, slightly ahead of
the ramp-up schedule.
August sales totalled 268 tonnes generating revenue in excess of A$1.6
million (RMB10.5 million) for the month. Galaxy commenced battery grade
lithium carbonate sales with overall product acceptance. August sales
were still based predominantly on technical grade product. Going
forward, battery grade sales revenue is expected to increase as more
customer product qualifications are completed.
Battery grade lithium carbonate samples were sent to over 30 potential
customers in China during the month for product qualification. Product
testing continues and feedback regarding product quality to date has
been extremely positive.
Product quality at Jiangsu continues to achieve at least the 99.5%
purity criteria required to class the lithium carbonate as battery
grade, with the product meeting all of the prescribed tolerances for
impurities required by Galaxy's cathode producing customers.
Sales volumes are expected to build up rapidly in the coming months as
more customers qualify the product and fulfil regular offtake
arrangements. The earlier-than-expected achievement of battery grade
product has been an important milestone in the ramp-up of the Jiangsu
Plant. Moreover, the consistent achievement of battery grade quality
strongly supports the Company's strategy of becoming a dominant player
in the lithium-ion battery input market.
Galaxy Managing Director, Iggy Tan, said the Company is very pleased
with the Jiangsu Plant ramp-up so far: "The progress to date at Jiangsu
is very much in line with our expectations. Jiangsu is a large chemical
complex and we are pleased to have already successfully reached a
number of key quality and production milestones. We are aiming to
achieve further production targets in the coming months as we progress
the 12 month ramp-up of the Plant, and as we move towards achieving
positive operational cash flows in the first quarter of 2013."
This month, the Company will continue work on optimising the process and
drive the ramp-up of the Plant to achieve design production as soon as
practicable. A new pneumatic conveying system to replace the current
drag chain conveyors is to be installed in the next week and is
expected to improve both the quality performance and operability of the
product end of the Plant.
Lithium carbonate demand remains strong in China and recent forecasts
are for continued strong growth through to 2020. Recently announced
prices for both battery and chemical grade lithium carbonate represent
an increase of 17% over the levels recorded in the same period last
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 an
integrated lithium mining, chemicals and battery company listed on the
Australian Securities Exchange (Code: GXY) and is a member of the
S&P/ASX 300 Index.
Galaxy wholly owns the Mt Cattlin project near Ravensthorpe in Western
Australia where it mines lithium pegmatite ore and processes it on site
to produce a spodumene concentrate and tantalum by-product. At full
capacity, Galaxy will process 137,000 tpa of spodumene concentrate
which will feed the Company's wholly-owned Jiangsu Lithium Carbonate
Plant in China's Jiangsu province. The Jiangsu Plant has commenced
production and will produce 17,000 tpa of battery grade lithium
carbonate, the largest producer in the Asia Pacific region and the
fourth largest in the world.
Galaxy is also advancing plans to develop the Sal de Vida (70%) lithium
and potash brine project in Argentina situated in the lithium triangle
(where Chile, Argentina and Bolivia meet) which is currently the source
of 60% of global lithium production. Sal de Vida has excellent promise
as a future low cost brine mine and lithium carbonate processing
The Company completed a feasibility study for a proposed lithium-ion
battery plant, to produce 620,000 battery packs per annum for the
electric bike (e-bike) market. The Company also owns the James Bay
(100%) Lithium Pegmatite Project in Quebec, Canada.
Lithium compounds are used in the manufacture of ceramics, glass,
electronics and are an essential cathode material for long life
lithium-ion batteries used to power e-bikes and hybrid and electric
vehicles. Galaxy is bullish about the global lithium demand outlook and
is positioning itself to achieve its goal of being involved in every
step of the lithium supply chain.
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
For further information:
Galaxy Resources Ltd
Tel (office): +61 (0)8 9215 1700
Tel (office): +61 (0)8 9485 8888
Tel (mobile): + 61 (0)488 400 248