Galaxy Resources Limited (ASX: GXY) announced the first shipment (13,815 wet metric tons) of lithium concentrate from its Mt Cattlin mine under 2017 contract terms. The Mt Cattlin operations plant utilization continues to improve with the last 30 days’ concentrate production averaging 440dmt per day, which equates to an annualized production of more than 160,000tpa. However, the mica content of lithium concentrate is observed at 1.38%, and which is much below the contractual terms with clients. The MV Belle Ocean shipment is the first under 2017 contract pricing terms of US$830 per ton at 5.5% grade lithium concentrate with option of increasing to US$905 per ton for 6.0% grade equivalent. Total tonnage contracted at these pricing levels for delivery in 2017 is 120,000dmt and final pricing will be confirmed once the final grade and moisture content have been determined. Further, the company is aiming to dispatch one shipment per calendar month with 2017 contracted terms. Meanwhile, the stock has tumbled 19.6% to $ 1.55 in the last two trading sessions driven by the news of low quality lithium concentrate at Mt Cattlin. However, we believe that the street is exaggerating to the news as the final pricing of its supplies are based on the grade and moisture content.
To read the complete report CLICK HERE. To get your free report CLICK HERE
Disclaimer DisclaimerThe advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people.Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation.Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product.The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.CopyrightCopyright © 2015 Kalkine Pty Ltd ABN 34 154 808 312. No part of this website, or its content, may be reproduced in any form without the prior consent of Kalkine Pty Ltd.Kalkine is a trading name of Kalkine Pty Ltd ABN 34 154 808 312, which holds Australian Financial Services Licence No. 425376.