GXY - Galaxy Resources

[Sean K]

State One crunched some numbers in Oct 09.

Not sure how dated that info is now.

5.0 State One Indicative Forecasts & Valuation

We have valued the combined project of the mine and concentrator at Ravensthorpe and the lithium carbonate plant in China on a post tax basis. Our Base Case involves the expected level of gearing and discounts future cash flows on a corporate basis before the payment of dividends. The assumptions used in the Base Case are summarised below and result in a solid NPV valuation of A$344 M or A$ 1.79 cps, which is indicative of a robust project. Similarly, after applying future earnings multiples of 12X to earnings and 9X to cash generation, the numbers support a share price of at least A$1.50 in 2010.

However, we believe investors will continue to impute a significant premium for a integrated lithium producer for at least the next two years. Our 12 months price target is A$2.50. We expect that the value of GXY will increase over the medium to long-term, as success with the currently envisaged project paves the way for expansion into other lithium-based opportunities.

http://www.galaxyresources.com.au/documents/StateOneReserachReportOct09.pdf

Sounds like an interesting play.

 

[Sean K]

Anyone watch Foreign Correspondant tonight which had a story on the potential lithium deposit under Salar Ayuni in Bolivia. It's in the brine about 5m under the salt. Potentially $1.4t worth of lithium if they can extract it. Thousands of tons on to world production. I didn't see that in any of GXYs calculations. Perhaps it'll never happen.

 

[RamonR]

Galaxy has been included in the worlds first Lithium ETF traded from New York.

Has been moving nicely lately ( this has been added to circumvent to short posting rule )

 

[Ding]

Yes Kenas I did see that on ABC. It is a bit of a concern for me as I am a Galaxy holder. Lets wait and see...... as you said it may not ever happen.

 

[Sean K]

Yes Kenas I did see that on ABC. It is a bit of a concern for me as I am a Galaxy holder. Lets wait and see...... as you said it may not ever happen.

The Bolivians couldn't organise such a project which is what they intend to do, so I don't think it will ever get to market. Only a change in government and a right of centre thinker who invites the Chinese in will it possibly work. Probably some issues with extracting the lithium in the region due the environment too. Galaxy got a mention in the Fin today. Being put in some sort of fund centred on alternate energy or something.

 

[riodelaplata]

I saw the program and have been to the Salar de Uyuni twice in the last few years. Its one of the most impressive things I have ever seen.

However, As a GXY shareholder I am not too concerned about them producing anything in the forseeable future as there is practically NO infrastructure to speak of. The task of building a large scale mine with the necessary infrastructure in that remote and inhospitable location would be almost impossible.

It would also be a huge loss of an amazing natural wonder.

President Evo Morales is no capitalist dynamo either.

 

[mr. jeff]

Just an update on the chart for GXY, looking very strong at the moment and may have a run at 1.50 shortly. This looks to be resistance for them, so may be a point to watch. I'm not an expert on this, but I read a book once.

Seems like the Li story is attractive at the moment with passing comment in some media (vague comments not helpful I know) but have a look for your own interpretation...
Up 6 % today and very solid volume. No news.

Can anyone tell me how to spot the difference between a stock that is taking a rest from a run vs. faking you out with a double top, apart from watching and waiting ?

 

[Atomic]

Can anyone tell me how to spot the difference between a stock that is taking a rest from a run vs. faking you out with a double top, apart from watching and waiting ?

volume selling volume buying ,news, and PE

 

[xenith69]

Hi all,
watching with interest on this one!
Ive been in and out of this for quite some time!
Been able to pick highs and lows for GXY in the past but i cant seem to get back in at a level im comfortable with!
This has been very volatile and ive been taking advantage of that.
I believe the Li market has a very bright future and am wanting in again for a bottom drawer type holding, but am wary of GXY and as im not at all TA/chart savvy, im still watching
My re entry target is $1.27 or under but i may have to re think this soon b4 it really takes off!
The market may not like the uncertainty of the battery plant going ahead or not, and am waiting for a sell off.
My 2 cents anyway
Cheers
Xen

 

[xenith69]

Well i just couldnt wait any longer!
After reading the lastest presentation with all them lovely pics, i got back in today @ 1.38 with
20k.
This stock seems to tick all the right boxes!
GL and Merry Xmas

 

[fatmango]

Galaxy Resources

Galaxy took a short jump with the recent buys on rare earths. I thought it may have gone higher. Any thoughts on Galaxy and the recent demand for rare earth stocks?

 

[bennywizard]

New high of 1.805 today, I've been waiting for this one to move for a year and its finally building momentum, I like this stock for its distribution side as well as production, love to hear some more opinions on this one

 

[vnbm]

Recent jump is no doubt due to the latest announcement.

http://imagesignal.comsec.com.au/asxdata/20110111/pdf/01140717.pdf

Their Ponton Project is fairing better than expected, especially due to the high concentration of Neodymium. All depends on the talk with the WA government as to whether they will allow it.

 

[fatmango]

- Galaxy Resources

thanks for the link 'vmbm'. Informative and promising. I bought at 1.45 just before New Year so this is a good start to the year!

 

[Atomic]

Gone a little quiet lately, but gxy slowly chipping away at becoming an integrated miner of lithium , value adding to make batteries and then becoming a supplier , accessing the asian market.

Q Do we like this company model ?

has motorcycling developed from a cheap efficient mode of transport to a cultural choice for asia, anyway the market for the ebike must be huge, they seem to like bikes them asians

 

[RamonR]

Q Do we like this company model ?

I would have preferred it just stayed a miner and processor. That is mainly because I want it to start making a buck sooner rather then later.

However I see if all things go well, then it will be worth alot more the way it is.

 

[djhenry1981]

Anyone else holding this?

Came out of a suspension today from a CR. Raised $120m @ $1.10 Institutional placement.

 

[pixel]

Anyone else holding this?

Came out of a suspension today from a CR. Raised $120m @ $1.10 Institutional placement.

I do own a few; reckon they sold too cheap, but the Market still seems to like them.
This morning's gap-down looked definitely overdone - as is the case most of the time a low-ball raising to "sophisticats" is announced. By the time the initial panic was over, I was back to square.


my target is still the January High; say $1.75 by mid-June.

 

[djhenry1981]

I do own a few; reckon they sold too cheap, but the Market still seems to like them.
This morning's gap-down looked definitely overdone - as is the case most of the time a low-ball raising to "sophisticats" is announced. By the time the initial panic was over, I was back to square.
my target is still the January High; say $1.75 by mid-June.

Likewise, I tried to pick up some more at $1.18 - $1.20 but the SP moved away from me.

I am averaged at 1.256 and holding.

 

[fatmango]

appreciate your thoughts - I bought a small parcel at $1.45 thinking there was more upside. I hope your $1.75 by mid-June is correct.