Jiangsu Plant achieves record production month of 795 tonnes in
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
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:
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
The Company also owns the Mt Cattlin Spodumene Mine near Ravensthorpe in
Western Australia and the James Bay Lithium Pegmatite Project in
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
For further information:
Galaxy Resources Ltd
Tel (office): +61 (0) 8 9215 1700
Tel (office): +61 (0) 8 9485 8888
Tel (mobile): + 61 (0) 420 945 291