Friday, April 28, 2017

Galaxy Resources reports reaching nameplate prodcution at Mt. Cattlin

Galaxy Resources:

Galaxy's recent investor presentation had the following quote:

"Continued strength in lithium carbonate and lithium hydroxide prices is a clear indication that demand growth is sufficiently strong to cater for increased supply output. Mt Cattlin, Mt Marion, La Negra 2 and Tianqi Kwinana are the only new supply pipeline projects that are fully funded to date to support expected 120-150kt LCE incremental annual demand by 2020.

Further supply response expected to be slow as development pipeline is undercapitalised and projects have the potential for delays and budget overruns. Therefore supply and demand balance expected to remain tight until at least 2020, encouraging a robust pricing outlook."

Current pricing is at a new high and production at Galaxy is now hitting nameplate. The share price is down from recent highs but cashflow should be showing up on quaterly results soon.

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