Galaxy Resources provides March quarterly report; Sal de Vida Project receives US$ 271 mn from POSCO

GXY

Galaxy Resources Limited (ASX: GXY) a global lithium company, presented its quarterly report on 18th April 2019.  In the report, the company mentioned the operational highlights of its various projects.

Operational Measures:

Mt Cattlin Operations:

Galaxy mined a total of 1,168,120bcm in the first quarter of the year 2019 (Q1FY19), which was up by 18% as compared to the previously totalled mined volume of 988,387bcm, in the last quarter of the year 2018 (Q4FY18).

Out of the 1,168,120bcm in total, 437,932wmt was the ore mined by the company in Q1FY19, which was up by 1% as compared to 432,382wmt ore mined in Q4FY18. The mined ore grade also reflected an improvement and was at 1.03% lithium oxide, up by 0.05% as compared to previously reported grade of 0.98% lithium oxide in Q4FY18.

The company processed a total of 409,849wmt ore in the Q1FY19, up by 3% as compared to the previously reported 396,604wmt in Q4FY18.

The total concentrate production stood at 41,874dmt for Q1FY19, up by 24% as compared to previously reported 33,780dmt in Q4FY18. However, the concentrate shipped marked a significant decline and stood at 15,192dmt in Q1FY19, down by 62% as compared to previously reported 39,682dmt. Albeit, the cost per tonne of production declined by 19% and stood at US$453/dmt in Q1FY19, as compared to US$560/dmt in Q4FY18.

Galaxy mentioned low-grade pegmatite dilution as the reason for a decline in the average grade. Also, the company implemented a Yield Optimization Project, which is focused on improving utilization in each of the individual upgrade circuits.

The objective of the project is to process a more significant proportion of total feedstock, to increase the production volumes and enhance overall plant recovery and improve the quality of the final product.

The production guidance for the Mt Cattlin prospect for the second quarter of the year 2019 (Q2FY19) is 45,000dmt-50,000dmt of spodumene, and for the year 2019 is 180,000dmt-210,000dmt of spodumene.

The company progressed with various exploration work at Mt Cattlin during the quarter, such as target generation through surface geochemical sampling, generating geophysical profiles, etc.

James Bay Project:

Galaxy submitted an Environmental and Social Impact Assessment (ESIA) during the quarter to the Canadian Environmental Assessment Agency (CEAA), and continued interactions with stakeholders to provide clarification over the assessment. As per the company, the Canadian agency confirmed that the ESIA submitted by the company for the project is consistent with EIS Guidelines. The project is now moving forward to the next step of evaluation.

During the quarter, Galaxy signed a Pre-Development Agreement with the Cree nation to provide support to the local community through the James Bay project. Till date, the company has completed 80% of the phase 2 test work program for the project via Nagrom.

Sal de Vida Project:

During the quarter, Galaxy received the full US$271.6 million consideration paid by POSCO, amid the final settlement of the sale of a package of the tenement in the northern portion of the Salar del Hombre Muerto.

The company also mentioned that during the second half of the year 2018 and the beginning of the year 2019, Galaxy conducted a comprehensive evaluation with JP Morgan for possible strategic joint venture opportunities for the prospect. However, the company could not agree on a transaction structure to date for Sal de Vida, but concurrently closed the US$280 million sales to POSCO.

Corporate Update:

As per the company, it has US$285.3 million in cash and liquid assets with no debt (as on 31st March 2019) and robust cash flow from Mt Cattlin. As per the company, Galaxy now possesses the financial strength and strategy to progress with the development of Sal de Vida, to unlock and enhance its true value.

Further, Mr Simon Hay will join as the new CEO of the company from June 1st 2019.

The stock of the company is trading at A$1.635 (as on 18th April 2019, 2:42 PM), down by 11.62% as compared to its previous close.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Top 25 Dividend Stocks report for April

People prefer a dividend stock in their portfolio as it possesses the feature of compounding. Compounding means that the earning which is generated through these dividend stock will get reinvested and will eventually create earnings from earning. More precisely, the dividend generated from these dividend stock will get reinvested to buy another set of a share of the dividend stock which results in giving a higher dividend.

Click here to download your top 25 dividend stocks report!

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here