Galaxy Resources Ltd.

Galaxy Resources Ltd. is an Australia-based global lithium company with production facilities, hard rock mines and brine assets in Australia, China, Canada and Argentina. Galaxy owns 100% of the Jiangsu lithium carbonate plant in China's Jiangsu province, the Mt Cattlin spodumene project near Ravensthorpe in western Australia and the James Bay lithium pegmatite project in Quebec, Canada. The company is also advancing plans to develop the Sal de Vida lithium and potash brine project situated in Argentina's lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production.

Expert Comments:

Peter Chilton, Edison Investment Research (6/25/15)
"Galaxy Resources Ltd. has finalized revised terms with General Mining Corp. Ltd. for the Mt. Cattlin project (all tenements), replacing lease and royalty arrangements. . .the company retains exposure to 50% of Mt. Cattlin revenue. Production of both spodumene and tantalum is planned."

"I think that optionality is important in the mining sector. One company that's demonstrating this concept is Galaxy Resources Ltd. The company has a storied history in the lithium space, but one important thing it has now, relative to a lot of its peers, is cash. The company sold off its Jiangsu lithium plant in China, and struck a deal with General Mining, an Australian junior. The deal was recently revised, but will see Galaxy sell 50% of its Mt. Cattlin lithium mine for a total consideration of AU$25M. That gives management of both companies choices and flexibility. What it will probably do is focus on bringing its Sal de Vida lithium development play in Argentina closer to production." read more >

"Galaxy Resources Ltd. has been in the space for a number of years. It was the first company to build a new lithium mine in Australia, and had some problems with it. The company also had a conversion plant in China and took on too much debt. Galaxy became overlevered. When the new management team came in, it did a good job in terms of preventing a bankruptcy, restructuring and selling some of the company's non-core assets to get a better balance sheet. Management has turned Galaxy around, from a company that was potentially going bankrupt, given its balance sheet, to a company that is less levered and is looking at a potentially bright future, having left a lot of legacy challenges behind. The team has done a great job in selling assets and finding new joint venture partners for its Mt. Cattlin mine. The company will look to develop the Sal de Vida site in a short time." read more >

Peter Chilton, Edison Investment Research (5/15/15)
"Galaxy Resources Ltd. is advancing plans to develop the Sal de Vida lithium and potash brine project. . .the company has entered into an operating and option agreement with a third party for its Mt. Cattlin mine, which had been on care and maintenance since early 2013. Under this agreement, Galaxy will receive lease fee and royalty income."

Strachan Corporate (5/14/15)
"Galaxy Resources Ltd. has a clean balance sheet supported by AU$62.4M of convertible note debt and ~AU$50M of cash with which to progress development of its Sal de Vida project. . .development of a low-cost lithium and potash brine project at its 96%-held Sal de Vida project in Argentina will place the company well down the cost curve as a competitive supplier of lithium compounds. . .expansion opportunities and a long-life project position Galaxy as a major player in this rapidly growing industry."

RB Milestone Group (4/14/15)
"Galaxy Resources Ltd. recently sold its operating asset in China, the Jiangsu lithium carbonate plant, to Sichuan Tianqi Lithium Industries Inc. for an enterprise value of $173.2M. This has significantly improved the company's balance sheet and provides it with considerable financial muscle to advance its Sal de Vida lithium and potash project."

Management Q&A: View From the Top
Anthony  Tse
The new team at Galaxy Resources Ltd. has exerted fiscal discipline, consolidated assets and focused the company on its world-class Sal de Vida lithium project in Argentina, says Managing Director Anthony Tse, positioning Galaxy to supply a metal critical to the explosion in demand for modern electronics and transportation.
read more >

More Expert Comments

Experts Commenting on This Company

Michael Berry, Writer Disruptive Discoveries Journal
Chris Berry, Founder – House Mountain Partners LLC.
Peter Chilton – Edison Investment Research
Daniela Desormeaux, General Manager – SignumBOX
Jonathan Lee – Geologic Resource Partners, JGL Partners
Tony Wiggins – E.I.M. Capital Managers

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
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