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GXY, GALAXY RESOURCES LIMITED
blacksheep
post Posted: Sep 12 2017, 08:40 PM
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In Reply To: blacksheep's post @ Sep 11 2017, 01:31 PM

SP hit a high of $2.65 - up 11.81% today. Not sure how much higher it will go. Lithium stocks getting pumped all round, but GXY has been my favourite from the start. It's also mentioned here by Craig Evans, Tribeca Investment Partners as being their top pick.

QUOTE
Our preferred exposure to lithium is through the raw material producers who extract the metal in its original mineral forms. One such company is Galaxy Resources, which produces lithium from its hard-rock deposit at Mount Cattlin in Western Australia. Galaxy also has the opportunity to ramp up production through its projects in Argentina and Canada in the medium term.

https://www.livewiremarkets.com/wires/ideas...ctrified-future

Still a heavily shorted stock - # 12 on Shortman's Top 100 -, so caution warranted.
https://www.shortman.com.au/stock?q=GXY
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

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blacksheep
post Posted: Sep 11 2017, 01:31 PM
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SP currently up 5.63% @ $2.345/share. No doubt news that China is working on a timetable to end production of fossil fuel powered vehicles (as per Bloomberg article - http://www.straitstimes.com/asia/east-asia...c-vehicle-push) is behind the rise.

GXY still one of the most shorted stocks - Current position 5th September, 2017 11.27%
https://www.shortman.com.au/stock?q=GXY
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Aug 31 2017, 11:13 AM
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QUOTE
half-year update. ...Key takeaways include:

- Half-year revenue since May 1 of $14,975,000.
- Half-year loss after tax of $6,000,000.
- Spodumene production for the half-year was 56,465 dry metric tonnes (dmt).
- Production of 14,038 tonnes in June, equating to an annual run rate of 168,000 tonnes.
- Redesigned Mt Cattlin average recovery rates of 61% in June.
- Average realised sales price of US$724/dmt in the June quarter.
- June cash costs of US$334/dmt.
- Revised Sal de Vida DFS estimates a post-tax net present value of US$1.4 billion at an 8% discount rate.

Outlook: Cash costs will continue to reduce in the second-half.

While the financial result may not be much to get excited as it only includes sales made from May 1, I think the level of production, average recovery rates, and the reduction in cash costs were very impressive.

Galaxy’s production certainly has been increasing at a strong rate over the last few months. Almost a quarter of its first-half production came from the month of June alone. This puts the company on an annual run rate of over 168,000 tonnes.

In June Galaxy’s cash costs reduced to just US$334 per dry metric tonne. As low as this seems, it is expected to go even lower as the second-half progresses.

Which should result in strong margins for the company, especially with the company enjoying an average realised sales price of US$724/dmt in the June quarter.

Furthermore, Galaxy has now completed its 2016 contract off take supply obligations priced at US$600 per tonne. As a result, all future shipments are now based on 2017 pricing terms of US$830 per tonne for 5.5% grade lithium concentrate, rising to US$905 per tonne for 6% grade product.

Finally, I was pleased to see that a revised DFS study at the company’s Sal de Vida operation resulted in an increase in its post-tax net present value to US$1.4 billion at an 8% discount rate.

I see Sal de Vida as a key part of Galaxy’s future and it really isn’t hard to see why. Management believes it has the potential to generate average annual revenues of US$354 million and average operating cash flow of US$273 million.

Should you invest?

I continue to believe that Galaxy is one of the best options in the resources sector. It may be volatile and reasonably high risk, but I believe its world class assets and the ever-increasing demand for lithium puts it in a great position to beat the market over the coming years.

In light of this, I would choose it ahead of rivals Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS).
Mottled fool
(but ignoring the big Canadians and S Americans)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
diana
post Posted: Aug 9 2017, 09:38 AM
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In Reply To: blacksheep's post @ Aug 8 2017, 01:18 PM

Thank you for your posts blacksheep. Good stuff.

R/Di






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"Adversity does not build character; adversity reveals character."
Sandy Dahl

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blacksheep
post Posted: Aug 8 2017, 01:18 PM
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From the Diggers & Dealers Conference - article in The West Australian

QUOTE
Galaxy Resources chief financial officer Alan Rule says the lithium miner has been in direct contact with major US and European car manufacturers looking to lock in a secure supply of lithium for batteries that will power their electric vehicle models in the years ahead.

Echoing comments by the managing director of fellow lithium miner Pilbara Minerals, Ken Brinsden, at the Diggers and Dealers Mining Forum in Kalgoorlie yesterday, Mr Rule told delegates the big auto manufacturers had done their homework and didn’t want to be caught short.

“They have told us that they have done due diligence on 200 aspiring lithium miners in the world and believe only 10 of them will survive,” he said.

“Not all deposits are of the right quality. They need battery-grade lithium and they want to deal directly with miners because they don’t want to be beholden to Chinese suppliers.”

Mr Rule also noted it was difficult for aspiring miners with greenfields lithium projects to secure finance, citing the examples of Pilbara Minerals and Altura Mining being forced to go to the high-interest bond market for project financing.


“So supply going forward is the problem,” he said.

Mr Rule said the strong demand for lithium and the company’s existing cash flow from its Mt Cattlin spodumene project near Ravensthorpe put Galaxy in a strong position to secure finance, equity partners and offtake agreements for the company’s Sal de Vida lithium brine project in Argentina and its James Bay spodumene project in Canada.
Galaxy would spend $5 million on each project this year.

Meanwhile at the company’s Mt Cattlin project, Mr Rule said the company was working on lowering costs and improving recovery rates.

He said the project was operating at a 170,000tpa run rate and the company was aiming to boost recoveries from 61 per cent to 70-75 per cent and lower costs to below $US300/t. He gave cost guidance of $US325-$US350/t in the year ahead.

Low operating costs and strong prices for its spodumene concentrate product ($US770/t) meant Galaxy was generating $US70-$US75 million in free cashflow a year from Mt Cattlin, Mr Rule noted.

Galaxy shares were down 2.5¢, or 1.25 per cent, at $1.975 at 10.55am.

https://thewest.com.au/business/diggers-dea...y-ng-b88561463z
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jul 6 2017, 06:59 PM
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Stock watch: Galaxy Resources

QUOTE
Shares in Galaxy Resources added a further 7.5 per cent to $2.00, on top of earlier strong gains this week, after informing the market that lithium production at its Mount Cattlin plant in Western Australia had exceeded targets in June. The stock is highly shorted, with over 10 per cent of its register lent out to short-sellers, suggesting some shorters could have gotten squeezed out by the positive production upgrade. The multinational lithium miner started the year at $2.78, and at current prices has become something of an analyst's favourite. According to Bloomberg, six of the seven analysts who cover the stock have it as a buy, with only UBS' Amber Mackinnon rating it a 'neutral' with a 12-month price target of $1.80. The consensus price target is $3.0
0.

http://www.theage.com.au/business/markets/...706-gx5vb8.html

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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


nipper
post Posted: Feb 9 2017, 06:43 AM
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Western Australia continues to stake its claim as the world's lithium mining capital, with Galaxy Resources waving off the first shipment from its recommissioned Mt Cattlin mine near Ravensthorpe. About 10,000 tonnes of lithium concentrate left Esperance Port on January 2 aboard NY Trader 1 bound for Lianyungang Port in China. The first shipment was valued at $US6 million, with Galaxy planning production of 160,000 tonnes this year.....

The restart included refurbishing the Mt Cattlin processing plant and doubling throughput to about 1.6 million tonnes per annum, while the cost of the works blew out from an initial estimate of $15 million to $22.4 million. Galaxy's managing director Anthony Tse said production at Mt Cattlin continued to ramp up with daily plant utilisation now averaging 72 per cent.

http://www.abc.net.au/news/rural/rural-new...118?pfmredir=ms

QUOTE
Mt Cattlin is one of three operating lithium mines in WA, alongside Greenbushes in the South West and Mt Marion in the Goldfields, which both have high levels of Chinese investment.

Greenbushes is operated by Talison Lithium, in which China's Tianqi Lithium controls a 51 per cent stake and US-based Albemarle Corporation holds the minority interest. The open pit operation has been running since the 1980s and is considered the world's highest-grade lithium mine with export via Bunbury Port.

The Mt Marion mine near Kalgoorlie-Boulder — jointly owned by Chris Ellison's Mineral Resources, China's Ganfeng Lithium and ASX-listed Neometals — is on track to ship its first 10,000 tonnes of concentrate from Fremantle later this month.

Neometals managing director Chris Reed said that as of December 21, about 6,000 tonnes of concentrate had been produced from Mt Marion. About 3,000 tonnes had been stockpiled at the Kwinana port with trucking continuing around the clock.

As recently as November, Prime Minister Malcolm Turnbull identified lithium as Australia's next major mineral export to China as the super-charged sector continues to ride the wave of an investment boom.

More than 70 ASX-listed companies moved into the lithium space last year.

Mr Turnbull noted lithium's increasing role in battery storage when he addressed the Minerals Council of Australia's annual parliamentary dinner in Canberra. "Far from diminishing demand for our mineral exports, the digital revolution has enhanced the importance of cities and the infrastructure which enables them, not to speak of driving massive growth in demand for rare earth elements and lithium — of especial importance as battery storage expands from personal devices, to vehicles, to householders, to businesses, to national grids," Mr Turnbull said.


Other players in lithium market
QUOTE
Ken Brinsden's Pilbara Minerals is considered the next cab off the rank for WA lithium producers with its Pilgangoora mine.

Mr Tse predicted current global demand would only support "one or two" other WA producers entering the market.

Among the early stage explorers is Tawana Resources and Pioneer Resources, which have both been actively drilling near Norseman.

Kidman Resources has also trumpeted a "globally significant" discovery called Earl Grey at its Mt Holland lithium project near Southern Cross.

Just 120km down the road is Poseidon Nickel, in which mining magnate Andrew Forrest holds a 15.94 per cent stake.

Kidman and Poseidon are in negotiations to restart the latter's moth-balled Lake Johnston nickel concentrator to process lithium from Mt Holland. Poseidon's chairman Chris Indermaur said it made sense as Mt Holland had existing mining approvals in place and Lake Johnston could be retrofitted "reasonably simply" for lithium
.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Feb 6 2017, 09:37 AM
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Galaxy Resources is meeting fund managers in Sydney on Monday, ahead of an equity raising expected to launch later in the day. It is understood fundies have been booked for meetings through broker Canaccord Genuity which is expected to manager the offer.

Galaxy shares went into a trading halt on Monday morning ahead of the deal.

It comes as the company also released a detailed investor presentation to the ASX, marketing itself as one of the premier global lithium players.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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arty
post Posted: Nov 16 2016, 12:29 PM
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In Reply To: batikit's post @ Oct 17 2016, 10:11 AM

That is certainly true, and showing on the long-term chart quite well.
Cutting out the noise and focussing on Fibonacci levels, we get accumulation between Fibs 50% and 61.8%.

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Currently, I'm not holding, and have been trading only the swings between 30 and 27c
It's also worth looking at the XMJ chart: After weeks of rising anticipation, the last 3 days have seen a big drop.



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I trade daily, but I am not a licensed adviser. Whether you find my ideas reasonable or not: The only person responsible for your actions is YOU.
I follow two rules: (1) There are no sacred truths. All assumptions must be critically examined. Arguments from authority are worthless. (2) Whatever is inconsistent with observed facts must be discarded or revised. We must understand the Market as it is and not confuse how it is with how we wish it to be. (inspired by Carl Sagan)
 
batikit
post Posted: Oct 17 2016, 10:11 AM
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In Reply To: arty's post @ Oct 14 2016, 02:46 PM

trading this thing needs your logical sense inverted. SP goes up on rumour , and sold down on fact

Only the pros knows the insider news before the time and when everyone is excited about the news and jump in it is the time the pro takes profit.

Not hard to understand on a stock that has small volumes if the pros need to make seriously money they have to take action against the crowds otherwise their money cannot escape


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