3 Stocks With Quarterly Updates – GXY, RED And LVE

3 Stocks With Quarterly Updates - GXY, RED And LVE

The markets are currently looking upwards even though they are to slip on a slightly restrained outlook on the global growth front. With the first month of the year ending, few companies provided the quarterly reports until December 2018. Let’s look at the updates provided by these companies.

GALAXY RESOURCES LIMITED (ASX: GXY) – For the quarter ended 31 December 2018, the company is pleased to report to their shareholders its activities. The company has liquid assets and closing cash of US$41.1 million with zero debt. The average cash margin reported by the company is of US$288 per dmt sold. Due to increased ore mined and an increased stripping ratio, the total mining volumes increased 27% compared with the previous quarter. In line with Q3 was the cost of production for Q4 but resulting in the higher cash margin in Q3 the cash margin in Q3 had the benefit of lower cost of production in Q2. The final product inventory on hand at year-end was almost 8,000mt. Production guidance of total spodumene is in the range of 40,000 dmt to 45,000 dmt in Q1 of 2019 and 180,000 dmt to 210,000 dmt for the full calendar year. However, the stock price still declined by -6.25% and traded at $2.100 based on the sector performance.

RED 5 LIMITED (ASX: RED) – The company achieves FY2019 production guidance and strong quarter results puts Red 5 on-track. It confirms exceptional growth opportunity at an initial bulk mining Mineral Resource of 1.88Moz at the King of the Hills. The group’s cash and bullion on hand at the end of December 2018 was of A$14.6 million. For the December 2018 quarter, a total of 26,118 ounces of gold was recovered. Strong assay results from geochemical sampling at the Janine prospects and regional Gipps Hill. At an average gold price of $1,739 per ounce, the company’s hedge position totaled 35,200 ounces, at 31 December 2018. With AISC likely to be in the range of A$1,350 – A$1,550 per ounce, gold production guidance for the 2019 financial year is maintained at 100,000 – 115,000oz. With positive results, the stock price was up 5% to trade at $0.105 close to its 52-week high.

LOVE GROUP GLOBAL LTD (ASX: LVE) – With customer cash receipts of $1,620 k and net operating cash flow of $126 k recorded quarterly. As a result of higher staff costs, and administration and corporate costs, from 15.5% in the previous quarter net operating cash flow margin decreased to 7.8% partly. Up by 7% quarter-on-quarter the quarterly customer cash receipts are of a record $1,620k. As a result of an increased number of consultations conducted and higher average order value, led by a 51% quarter-on-quarter increase in Singapore cash receipt. However, down by 46% quarter-on-quarter quarterly net operating cash flow is of $126k. The company had a cash position of over $1.5 million as at 31 December 2018. Through cash flow from operations, the company is well funded to execute its strategic growth plans. With results in line, the stock price traded flat at $0.093.


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