Today, Galaxy Resources Ltd [ASX:GXY] gave an update on operations at its Mt Cattlin Project, in Ravensthorpe, Western Australia.
At the time of writing, Galaxy Resources’ share price is trading 2.80% higher at $1.66 per share.
Galaxy Resources’ update sees strongest month
Over the operating month of April, Galaxy resources saw record production output and increase product quality.
Following the completion of the Yield Optimisation Circuits (YOP), Galaxy is focused on strong operational execution, as well as building on performance from Q1 2019.
Galaxy’s Chief Executive Officer and Managing Director, Anthony Tse, commented on the Mt Cattlin project:
‘Following a comprehensive review of operations in the latter part of 2018, the team at Mt Cattlin focused on operational improvements on an efficient ramp up of the newly installed YOP throughout the start of 2019. Management has concentrated on cost reduction, together with the YOP efficiency and I am pleased to report that this effort has resulted in the strongest month at Mt Cattlin, both in terms of production output and product quality, since the Mr Cattlin operations were recommissioned at the end of 2016.’
He also said continued reduction in production cost provides Galaxy with a competitive edge.
‘…allowing the Company to continue delivering a healthy operational cash margin, notwithstanding the recent softening of lithium feedstock and chemical pricing.’
Galaxy Resources’ 2019 share price outlook
Moving further into 2019, Galaxy Resources is advancing its development of a number of its lithium projects.
‘Galaxy’s operational plan will continue to focus on maintaining Mt Cattlin as one of the lowest cost, high quality, lithium concentrate producers in Western Australia.’
Galaxy’s Sal de Vida lithium project, located in Argentina, which makes up 40% of the world’s lithium production, has brilliant potential as a low-cost, brine-based lithium carbonate production facility. They have plans to advance this project in the coming year.
The last five days of trading have seen Galaxy’s share price continue to build, but this isn’t always a sign that investors should keep watch.
More to come.
For Money Morning
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