Why Galaxy Resources Share Price is up over 5% Today (ASX:GXY)
The Galaxy Resources Ltd [ASX:GXY] share price is up 5.37% after the company gave a project update today ahead of its quarterly results.
Galaxy Resources is an Australian lithium miner with projects in Argentina, Australia and Canada.
Quarterly production up 40% at Mt Cattlin
Along with announcing the date for their March 2021 quarterly results conference, Galaxy provided an update on its assets.
Galaxy has ramped-up nameplate capacity at Mt Cattlin project in Western Australia, which Galaxy fully owns and operates. The quarterly production was 46,588 dry metric tonnes (dmt) of lithium concentrate at 5.8 % lithium oxide. This is a 39.7% increase when compared to the previous quarter along with an improved recovery of 60%.
Galaxy also shipped 29,917 dmt of lithium concentrate during the period with one of the shipments suffering delays.
At James Bay, their project in Canada, Galaxy completed the preliminary economic assessment, which confirmed it to be a highly-competitive spodumene project. They are looking to advance the project to ‘construction-ready’ status by the end of the year.
And at Sal de Vida, their project in Argentina, the company is still conducting onsite piloting and production wellfield drilling. Galaxy will be releasing a full project description along with financial metrics before their first quarter results.
What could happen next to the GXY share price?
The company said they will be releasing their March 2021 quarterly results on the 21st of this month. Galaxy Resources shares boosted up to $3.30 by midday but have since gone down to $3.14 at time of writing.
Lithium prices have been on the rise this year on concerns on supply outstripping demand as electric vehicles roll out. Argus Media expects that combined demand for lithium will be 1.79 million tonnes per year by 2030, much higher than the 317,000 tonnes in demand today. Most of that (about 79%) will be coming from the electric vehicle market.
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