It may not be wrong to say that the supply of lithium is humongous and that it will not diminish with the rising demand of lithium in the auto industry. It will be interesting to see if this is benefitting the stocks in this metal’s space. Two big stocks in the lithium space are:
GALAXY RESOURCES LIMITED (ASX: GXY) – The company has announced that it has completed 25,555 meters of grade control. The company has seen a 46% increase in cash balance to US $45.1M as at June 30, 2018 from US $31.0M in June 30, 2017. It has a gross profit margin increase of US 1,465% as at June 30, 2018 of $23.2M from US $1.5 M as at 2017. The revenue has gone up by 682% to US $88.4 M as at June 30, 2018 which is leading to EBITDA change 2,878% to US $42.4 M. The company has also reported a NPAT of US $11.5 M which is up by 331% over the previous corresponding period. The company has achieved a production optimization over the past 12-Months and has improved its cost margin. The company has free cashflow and EBITDA margins to support growth and development projects. The stock price surged up by 2.632% as at November 28, 2018 to $2.730 and has witnessed a 1166.67% over the past sixty months.
PILBARA MINERALS LIMITED (ASX: PLS) – The company has had a resource growth with massive JORC indicated 130Mt resource completed, and all the projects execution delivered on time during the year. The lithium pricing from China which appears to have stabilized has helped the company. Regarding low cost, long life and high quality the company has one of the best raw material projects in the world. Its partner POSCO is also is a financially strong and technically capable, to largely fund Pilbara’s initial 30% interest in the JV conversion plant who will provide a convertible bond for A$79.6M. As at June 30, 2018 company had a cash balance of A$90.6 million. The consolidated loss for the year ended 30 June 2018 has reduced and was $19.42 million as compared to 2017 loss of $25.95 million. The market capitalization of the company at a current market price is $1.45 billion. The stock price surged up by 1.205% as at November 28, 2018 to $0.840 and has witnessed a 1166.67% over the past sixty months.
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