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Galaxy Resources Limited (ASX: GXY) announced its 2018 full year results on 28th February 2019. The company reported total revenue of US$153.9 million, up by 60% as compared to 96.3 million in the previous financial year. The company reported an EBITDA of US$58.1 million, up by 90% as compared to US$30.6 million excluding POSCO sales completion. After including POSCO sales, the EBITDA marked US$281.17 million.
As per the company, due to higher sales volume and higher realized spodumene prices, the company recorded higher revenue. The sales volume for the FY18 were at 159,255dmt as compared to 113,467dmt in FY17 and spodumene prices were at US$927/dmt compared to just US$783/dmt in FY17.
The NPAT for the company reached US$150.2 million after including the POSCO sales, up by 118,186% as compared to US$0.1M in the previous year. The NPAT excluding POSCO reported at US$3.5M, up by 2,622% as compared to US$0.1 million. The Earning per share for undiluted shares reached 36.9 cents per share and 36.6 cents per share for the diluted shares. The earning per share marked a significant gain as compared to just 3.2 cents per share for both diluted and undiluted shares in the previous year.
Liquidity Profile:
The company received US$154.92 million from customers amid higher selling price, up by approx. 94% as compared to US$79.856 million in the previous year. However, the higher operating and investing costs led to a net decline in cash and cash equivalent at the end of the period FY18.
The net operating expenses for FY18 were at US$97.15 million as compared to just US$36.09 million in FY17, which led to net inflow from operating activities of US$57.76 million as compared to US$43.76 million in FY17. The company marked a net outflow from investing activities at US$77.17 million as compared to US$26.95 million.
The company had a cash and cash equivalent of US$46.62 million at the beginning of the financial year 2018. However, after adjusting the cash outflow of US$20.02 million, occurred due to investing and financing outflow, and foreign exchange rate effect, the net cash and cash equivalent of US$24.755 million was recorded at the end of the financial year 2018.
Financial Strength:
The company reported total assets at US$667.137 million, up by approx. 38.90% as compared to US$480.207 million reported in the previous financial year (FY17). The company marked a total current asset base of US$321.622 million as compared to US$13.147 million in FY17. However, the company marked a significant increase in inventory from US$8.95 million in FY17 to US$16.70 million, and the further revenue recognition will depend upon the liquidity of the inventory.
The company recognised US$278.703 million as trade and other receivables, which marked a significant increase from US$13.147 million in FY17 and represented credit selling. The recognition of this will depend upon the creditworthiness of the buyers.
Total liabilities were at US$113.485 million, which marked a gain from US$34.26 million in FY17. The major factor contributed to the total liability was income tax payable arising from POSCO transaction net of withhold tax paid.
During the time of writing this report, the shares of the company are trading at A$2.190 (AS OF 28TH February 2019, 3:35 pm), down by 1.802% as compared to its previous close.
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