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At the backdrop of the lithium industry boom in Australia, the investors maintain interest in the following two sector stocks yielding positive returns in the past one week.
Galaxy Resources Limited
Galaxy Resources Limited (ASX: GXY), a company from the metals and mining industry, is based in Applecross, and primarily engaged in the production of lithium concentrate and exploration of other minerals in Canada, Australia as well as Argentina. The company holds an interest in many projects across the three locations including the Sal de Vida brine project in Argentina; the James Bay spodumene project in Quebec, Canada; and the Mt Cattlin spodumene mine in Western Australia.
Galaxy Resources has a market capitalisation of AUD 847.65 million. At the close of the market trading on the ASX on February 25th, 2019, the GXY stock price stood at AUD 2.200, edged up by 3.774%, depicting an intra-day gain of AUD 0.080 with 6.89 million volume of traded shares. Although the YTD return generated by the stock remains negative at 3.20%, the last five-days has witnessed an upswing, recording a positive yield of 5.47%.
The company recently announced the final settlement of the sale of a package of tenements located in the northern portion of the Salar del Hombre Muerto to POSCO, wherein Galaxy will receive proceeds of USD 257 million held in Escrow plus interest accrued by February 26th, 2019, along with an additional USD 14.6 million to be paid directly by POSCO. At the end of the previous quarter ended 31 Decemberâ18, Galaxy Resources reported zero debt with closing cash and cash equivalents at US$ 41.1 million.
Pilbara Minerals Limited
Pilbara Minerals Limited (ASX:PLS) is headquartered in West Perth and engaged in the exploration, evaluation, and development of mineral resources in Australia. The companyâs primary focus lies in the development of Pilgangoora lithium-tantalum project situated in the Pilbara region, Western Australia.
Pilbara Minerals has a market capitalisation of AUD 1.2 billion and approximately 1.74 billion outstanding shares. At the close of the ASX market session on February 25th, 2019, the PLS stock last traded at a sell-off price of AUD 0.740, up 0.68%, indicating an intra-day gain of AUD 0.005. The stock has also generated a positive YTD return of 1.38% so far.
The Group recorded loss after tax for the half-year ended December 31st, 2018 at $ 11.9 million (December 31st, 2017: $ 9.9 million), which includes exploration expenses of $ 4.41 million, an unrealised foreign exchange loss of $ 6.09 million related to the Companyâs USD 100-million Nordic bond debt facility and also non-cash share-based payment expenses of $ 1.79 million.
The company also reported a basic loss of 0.68 cents per share for the period (December 31st, 2017: 0.64 cents). At the end of the half year, no dividend was announced during the period, and none was recommended as of now. The net cash and cash equivalents with the company stood at AUD 70.26 million, with substantial cash outflows from operating and investing activities.
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