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GALAXY RESOURCES LIMITED (GXY)


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General Information
Company Name: Galaxy Resources Limited
Stock Code: GXY
Website: www.galaxyresources.com.au
GICS Sub-Industry: Diversified Metals & Mining
Market Cap ($M): 134
Equiv. Shares (M): 584

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.230 $ 0.000 $ 0.000 $ 0.000 $ 0.230 0 0%

Company Overview

Business Description:
Galaxy Resources Limited (GXY) is a diversified exploration company with interests in five projects in Western Australia covering a range of commodities including lithium, tantalum, base metals (copper-zinc-nickel), gold, iron ore, manganese, talc, rare earths and uranium.

Strategy Analysis:
GXY plans to continue development of the Mt Cattlin Spodumene Mine, to develop the Jiangsu Lithium Carbonate Plant, and to explore for minerals. They forecast continued increase in the demand for Lithium for electric vehicles. Galaxy Resources reported positive cash flow of $3.37m for quarter ended 31 December 2012. Operating cash flow for the period was $(17.6m). Payments for exploration and evaluation were $(3.71m). Investing cash flow was $(8.25m). Financing cash flow was $29.21m. Cash in hand at the end of the quarter was $7.72m. During the quarter the Company announced it was to complete a capital raising of A$81m via a placement to the East China Mineral Exploration & Development Bureau (ECE) and existing investor M&G Investments. The Company was advised on 18 January 2013 by ECE that its Board had withdrawn from ECE's proposed investment in Galaxy. ECE indicated to Galaxy it is willing to reconsider the investment once the Jiangsu Plant returns to stable operation.

Financial Summary
Year to Dec NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2012  A -127.9 -30.0 -- 0.0 0.0 0.0 --
2011  A -131.9 -47.1 -- 0.0 0.0 0.0 --
2010  A -29.6 -16.6 -- 0.0 0.0 0.0 --
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F 2010 A 2011 F 2012 F
BHP Billiton (BHP) $112,024 M -0.1359 -0.2135 0.2033 11.0748 14.0816 11.7023 0.0315 0.0332 0.0367
Galaxy Resources (GXY) $134 M -- -- -- -- -- -- 0.0000 -- --
Iluka Resources (ILU) $4,756 M -0.2536 -0.6745 1.6595 12.5900 38.6789 14.5436 0.0308 0.0131 0.0250
Rio Tinto (RIO) $24,010 M -0.3874 0.0912 0.2010 11.3810 10.4297 8.6839 0.0292 0.0336 0.0372
Sims Metal Management (SGM) $2,012 M -0.6378 -0.2349 1.9387 29.2545 38.2376 13.0119 0.0203 0.0110 0.0376

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
GXY -- -- 0.97 -- 10.41
Market 0.83 14.4 1.22 1.88 1.72
Sector 0.59 8.57 0.69 2.00 7.29

Directors
Name Position Start Date
Mr Zhimin (Richard) Shi Alternate Director 19 September 2011
Ms May Chen Alternate Director 02 December 2011
Mr Anthony Tse Executive Director 13 October 2010
Mr Ignatius Kim-Seng Tan Managing Director 18 September 2008
Mr Craig Leslie Readhead Non-Executive Chairman 27 April 1999
Mr Kai Cheong Kwan Non-Executive Director 13 October 2010
Mr Xiaojian Ren Non-Executive Director 07 January 2010
Mr Robert James Wanless Non-Executive Director (other) 15 January 1996

Management
Name Position
John A Sobolewski Chief Financial Officer
John Sobolewski Chief Financial Officer
Andrew Meloncelli Company Secretary
Jingyuan Liu General Manager Development
Anand Sheth General Manager Marketing & Business Development
Terry Stark General Manager Operations

Substantial Shareholders
Holding Name
43,011,164 (7.68%) Deutsche Bank AG
73,893,638 (13.19%) Vanguard Precious Metals and Mining Fund
104,279,806 (18.61%) M & G Investment Management Limited
37,584,912 (6.43%) Creat Resources Holdings Limited

Calendar of Events
Date Event
30 April 2014 Report (Quarterly)
27 March 2014 Report (Annual)
31 January 2014 Report (Quarterly)
31 October 2013 Report (Quarterly)
30 July 2013 Report (Quarterly)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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