Hi all,
Just received a global lithium report issued by Macquarie Equities and they are a little negative on GXY price performance moving forward. Here's what they have said:
Galaxy Resources
We are also positive on GXY’s Mt Cattlin project which we expect to be in production before the end of the year. GXY has binding off-take agreements with two undisclosed China-based buyers for delivery of 60,000t spodumene concentrate in 2HCY16, and a further 120,000t in CY17. CY16 off-take has been secured at US$600/t FOB for minimum 5.5% Li concentrate. However, we do not believe that medium term demand supports the development of the company’s Sal de Vida brine project and hence see the stock as fully valued.
Be very careful with your exit price strategy as there could be insto selling at levels above the current price.
GXY Price at posting:
44.0¢ Sentiment: None Disclosure: Held
