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Galaxy Resources Limited (ASX:GXY) has announced that the final settlement of the sale of a package of tenements located on the northern portion of the Salar del Hombre Muerto to POSCO, has been completed. The company will now receive US$271.6 million, with US$257 million consideration held in escrow plus interest accrued and US$14.6 million will be paid by POSCO directly to Galaxy by 1 March 2019.
Recently, the company also announced its Quarterly activity report for the period ended 31 December 2018. The company reported an increase of 27% in mining volume, which was reported at 988,387bcm in Q4 2018 as compared to just 779,485bcm in the previous Q3 2018. The increase in the total mined volume was marked by an increase in Ore mined.
The total ore mined was reported at 432,382wmt, up by 9% as compared to the previous quarter of Q3 2018 which reported 397,047wmt of ore mined. The ore mined- grade was reported at 0.98% in the quarter ended 31 December as compared to 0.89% in the previous quarter. The ore grade mined however remained below the average reserve grade due to the lower grade ore mined from the 2SW pit.
Project Updates:
The company production at Mt Cattlin operations reached 33,780 dry metric tonnes (DMT) of spodumene concentrate with sales of 39,682dmt of spodumene concentrate. GXY realized an average cash margin of US$288 per DMT sold and is in zero debt.
In support of exploration, the company continued its previously announced 30,000m drilling and completed a 5,520m of RC drilling. The exploration drilling depicted an unidentified lobe beneath the know spodumene bearing lode, and now it is included in the reserve and resource.
Mt Cattlin spodumene production guidance for Q12019 was decided with the company targeting 40,000DMT to 45,000DMT of production volume from the operations.
At Sal de Vida project the company drilled two new explorations well in the southern basin of Salar del Hombre and commenced work on the construction of 15-hectare test ponds.
At the James Bay project, the company submitted an environmental and social impact assessment (ESIA) to the various authorities in Canada for evaluation. The company also renewed its mining tenements. On 31 December 2018, the company had US$41.1 million in cash and liquid securities.
Earlier to the announcement of the POSCO transaction the share of the company on ASX was on a trading halt on the company's request. The trading of the share resumed after the company's announcement.
Stock price movement:
The securities of the company were placed on trading halt on 22 February 2019 till the time key announcement is made by the company or till 26 February 2019. The trading halt got lifted today post the announcement release.
The share price of the company is in an uptrend from its dayâs low of A$ 1.940 made on 20th February 2019. The share prices soared from A$ 1.940 to mark a high of A$ 2.300 on 25th February 2019.
The shares of the company settled the dayâs trading at A$ 2.200 (as on 25th February 2019), up by 3.774% from its previous close of A$2.120. The shares opened at A$2.200 and made a high of A$2.300 and had closed at A$2.200 (as at 25 February 2019) with an average volume of 2,574,138.
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