Two Resource Sector Stocks Under Discussion- GLN And PLS

Two Resource Sector Stocks Under Discussion- GLN And PLS

The ASX 200 material index posted jump of 1.48% (185.9 points) to AUD 12522.1 as on 11 February 2019.Let us look at two important resource stocks: GLN and PLS, which are being discussed widely among investors:

Galan Lithium Limited (ASX: GLN)

Galan Lithium is an ASX listed lithium exploration company with stakes in Latin America at Hombre Muerto salar in Lithium triangle in Argentina, which is the most important prolific salt flats in the world. The site boasts of having the finest grade of lithium brine within Argentina with the lowest impurities.

On 6 February, Galan Lithium announced maiden drill hole at Candelas which is expected to have highly conductive brines over 60 m plus from 235 meters. Preliminary samples have been sent to the laboratory in Argentina for analysis. Its brine conductivities exceed the requisite field instrument limits. The company management has announced that they have intercepted a good amount of brine in their first hole drill at Candelas. Though they still await validation of the brine to be lithium bearing, the fact of the existence of brines in those areas which were not earlier into their prospects is delightful. They are pleased with their continuous ongoing exploration of the 15 km stretch of the project.

The company reported losses in all of its quarter till June’18 due to high operating costs. The company expects the demand for lithium to grow in the future which will boost its cash flows in the coming times.

GLN’s trading activity has been halted on ASX till Wednesday, 13 February 2019 or when an announcement is released to the market regarding exploration results from its maiden drill-hole at the Candelas Lithium brine project located in Argentina. It last traded at A$0.315 (as on February 11, 2019) with the market capitalization of A$35.19 mn. Its 52 weeks high was last noted at A$0.460 and 52 weeks low at A$0.09. Its absolute return over the period of 3 months, 1 year and 5 years are 28.57%, 110%, and 295.57% respectively.

Pilbara Minerals Limited (ASX: PLS)

Pilbara Minerals is an Australian tantalum-lithium producer considered within the top 200 companies in Australia (ASX200 index). It is one of the important companies in the emerging lithium production industry globally.

Weighted average grade of 1.27% Fe2O3, 6.11% Li2O and tantalite concentrate of 27,821 lb helped the company to achieve sales target of 46,682 dmt spodumene concentrate. It has reorted strong production ramp up with a quarterly total of 47,859dmt and 56,634lbs tantalite concentrate, with December process tonnes throughput representing 85% of the targeted annualized Stage 1 rate of 2Mtpa. It reported cash balance as $70.2 mn on 31/12/18. Its stage 2 and 3 concluded with board FID and financing underpinned by offtake customers, and expansion to 6.2Mtpa and up to 7.5Mtpa under evaluation. It recorded landmark first shipment of +6% spodumene concentrate 8,800wmt along with Non-binding MoU with POSCO for larger chemical conversion facility 40ktpa.

PLS last traded at A$0.645 (up 0.781% as on February 11, 2019) with the market capitalization of A$1.12 bn. Its 52 weeks high has been noted at A$1.125 and 52 weeks low at A$0.570. It has offered absolute return of -25.15%, -21.95%, and 4471.43% for 3 months, 1 year, and 5 years, respectively.


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