How Galaxy Resources Performed in Q3 2018?

  • Oct 18, 2018 AEDT
  • Team Kalkine
How Galaxy Resources Performed in Q3 2018?

Galaxy Resources Limited (ASX: GXY) posted disappointing results for Q3 2018 ending September 2018 and, as a result, the company’s shares are struggling. The company’s stock price is witnessing significant downward trend and it seems like it has gathered the attention of the short sellers. Earlier, the short sellers were more interested in the company’s stock as they were expecting it would fall short of the cash in order to complete the construction of Sal de Vida project. There were expectations that the company would opt for equity funding negatively impacting the existing shareholders.

On October 18, 2018, Galaxy Resources came out with the quarterly results which covering three months ending September 30, 2018. The results failed to impress the market players as the company reported that it witnessed a fall of 8% in the total mining volumes in respect to the Mt Cattlin operations in Q3 2018 on a sequential basis. As per the company’s management, this decline was witnessed primarily because of delay which it encountered with respect to receiving payments. These permits were related to the planned mining access east of floater road. 

In Q3 2018, the company also entered a deal with POSCO which revolves around selling tenements which are in Salar del Hombre Muerto’s northern region which is located in Argentina. This transaction has been finalized with the total cash of US$280 million. The proceeds which it would be getting as a result of the agreement would be invested in the project so that Sal de Vida project can be further developed. In October, POSCO had initiated the transfer of US$257 million towards the transaction escrow account which has been maintained with HSBC. However, the releasing of the funds would be initiated only after the receipt of tenement transfer deeds by Salta and Catamarca mining courts. The management of Galaxy expects this to be done before October ends.

At the end of Q3 2018, Galaxy still had no debt and had cash as well as liquid securities amounting to US$54.7 million. Apart from this, the company also received payment amounting to US$13.3 million with respect to the shipment which was completed in the September end. This was received in the beginning of October. As per the management, the broader market of lithium witnessed substantial volatility in Q3 2018. The company produced 29,555 dry metric tonnes or dmt in regard to concentrate which implies the substantial fall of 35% as compared to the prior quarter. It also witnessed a fall of 23% in the average cash margin per tonne of the concentrate sold to US$411 in Q3 2018 as compared to the previous quarter. This decline was witnessed by the company mainly because of increased production costs because of the lesser production.

Galaxy Resources Limited witnessed the negative trend on October 18, 2018. The stock ended the session at A$2.200 per share which implies the fall of A$0.130 per share or 5.579%. The company has a market capitalization of $949.53 million. The company’s stock price is presently trading in the lower range.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK