Galaxy Resources has announced its best-ever monthly production in September at its Jiangsu Lithium Carbonate Plant, totalling 795 tonnes of lithium carbonate. Quarterly production stood at 2040 tonnes, a 15% increase year-on-year for the quarter ending June 2013. Meanwhile, 1373 tonnes, or 67% of volume in the September quarter, were battery grade – a 95% improvement quarter-on-quarter.
Sales volumes for September were 632 tonnes, another monthly high. Orders achieved for the month were impacted by customer demand in accordance with the Mid-Autumn Festival Holiday, along with the National Day Golden Week Holiday in early October, when most businesses and manufacturing on mainland China closes down.
For the September quarter, total sales volume was 1816 tonnes, representing a 9% quarter-on-quarter increase over the June 2013 quarter. Battery grade sales are further increasing and now comprise 64% of total sales volume – a 70% improvement quarter-on-quarter.
“Production and sales records for the month were very encouraging and indicated strategies implemented at Jiangsu to improve efficiency are proving successful,” said Galaxy interim managing director Anthony Tse. “Sales for September and the September quarter are a strong indication the ramp up at Jiangsu is on track and progressing well.”
He says the Jiangsu project is firmly on track to be at least at cash-flow break even status in 2013, amid robust consumer demand.
Galaxy’s September production represents an annualized rate of 9600 tonnes, close to 60% of the plant’s nameplate capacity of 17000 tonnes of lithium carbonate. At full production, Jiangsu has potential to generate annual revenues exceeding US$100 million.
These milestones follow Galaxy’s raising of $37.5 million under the recent entitlement offer, which has been used to commence debt reduction initiatives, with US$5 million of Chinese bank debt recently repaid. Discussions over further outstanding corporate liability reductions are in line with the previously agreed restructuring with convertible bondholders.
Galaxy is an Australian-based global lithium company with production facilities, hard rock mines and brine assets. Galaxy’s advanced and fully-automated lithium carbonate production facility in Jiangsu produces battery grade lithium carbonate, and aims to become the top producer in Asia Pacific region and the fourth-largest in the world.
Lithium compounds are used in the manufacture of ceramics, glass and electronics, and are an essential ingredient in producing battery materials such as cathode and electrolyte, in the manufacture of long life lithium-ion batteries. Such batteries are used in consumer electronics, power tools as well as hybrid and electric vehicles.