Galaxy Resources is in ongoing negotiations regarding a potential transaction which would strengthen the company’s balance sheet. Quotations on the company’s shares on the ASX have been suspended pending the result of the negotiations with the company requesting the suspension to end at the commencement of trading on Monday, February 17.
In its December quarterly report, Galaxy stated that the Jiangsu lithium carbonate plant produced 1360 tonnes in the quarter with sales of 1688 tonnes. Of the 1360 tonnes, 68% was battery grade.
The plant depleted the supply of spodumene from Mt Cattlin in mid-November and carried out a scheduled and required shutdown to convert the calcination system to accommodate feedstock from Talison. The plant received its first shipment of Talison feedstock in early December and production resumed in mid-December.
Consequently, with almost one month of production impacted by the changeover, the total production volume for the quarter was lower than the previous quarter. This impacted the strategic plan of Jiangsu reaching cash flow break even status during the quarter. However, individual run rate periods once the plant was recommissioned were encouraging and as such Galaxy expects to now reach cash flow break even status during the current quarter.
Following the ISO9001 (Quality) Certificate awarded by the British Standard Institute (BSI) in May last year the Jiangsu plant received two more certificates on ISO14001 (Environment) and OHSAS18001 (Occupational Health and Safety) from BSI in August 2013. The plant is now undertaking the certification for TS16941, a quality management standard mandated by the automotive industry. The certification is part of Galaxy’s effort in establishing its leading position in the electric vehicle sector.
During the December quarter the Jiangsu plant received the approval document from the Administration of Environment Protection of Jiangsu province. This concluded the necessary project completion regulatory approvals for the Jiangsu Lithium Carbonate Project.