Galaxy Resources’ Share Price Rises after Record Production

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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.

Related: Could lithium be Australia’s next resource boom? Click here to find out.

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.


Ryan Clarkson-Ledward,
For Money Morning

PS: What’s the driving force behind this new ‘green energy’ alternative? If Galaxy Resources has sparked your interest, we recommend downloading our free report on the lithium battery boom to learn more. Download here.

About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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