GALAXY RESOURCES LIMITED
ANNUAL FINANCIAL REPORT DECEMBER 2011
DIRECTORS' REPORT (CONTINUED) OPERATING AND FINANCIAL REVIEW (CONTINUED) Review of Operations The Review of Operations is included separately in this Annual Report. Review of Financial Condition During the course of the financial period a number of events impacted on the financial condition of the Consolidated Entity as follows: Total equity increased by $22,080,930 (24%) to $113,515,105: - 130,673,642 shares were issued by way of placements raising $150,000,000 before costs; and - 250,000 shares were issued by way of exercise of options raising $150,000. Cash on hand decreased by $9,512,634 (34%) to $17,996,933. Current assets increased by $1,576,110 (4%) to $42,243,965. Total assets decreased by $6,169,106 (3%) to $241,701,389 As at 31 December 2011 the Consolidated Entity had: Cash and cash equivalents of $17,996,933; Current Debt of $3,714,935; Non Current Debt of $95,852,660. Significant Changes in State Of Affairs The state of affairs of the Company was not affected by any significant changes during the year. Events Subsequent To Reporting Date On February 13, 2012, 8,550,000 ESOP options were issued. These options were exercisable at $1.16 and vest upon completion of 18 months service from 30 November 2011, successful listing on the Stock Exchange of Hong Kong Ltd and the Company’s share price being greater than A$2.00 based on a 10 day VWAP. On January 5, 2012, the Company completed the third spodumene shipment to Jiangsu Lithium Carbonate Plant Other than the matters discussed above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years. Likely Developments and Expected Results of Operations The Company and Consolidated Entity intends to continue exploration and development of the Mt Cattlin Spodumene Mine and Jiangsu Lithium Carbonate Plant and to seek investment opportunities in the resources industry. Further information on likely developments in the operations of the Company and Consolidated Entity and expected results of operations have not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the Consolidated Entity. REMUNERATION REPORT - AUDITED The remuneration report is set out under the following main headings: A Principles of compensation B Details of remuneration C Service agreements D Share-based compensation The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001. The information provided within this remuneration report includes remuneration disclosures that are required under section 300A of the Corporations Act.
Page | 40