Australia's largest stock trading and investment forum Australia's #1 stock forum

GXY

0.00%

$5.28 galaxy resources limited

Ann: 2018 Half Year Results Presentation, page-5

First 5 Last

Share
Profile

Follow
Subs

4,845 Posts.

1558

30/08/18

10:49

Post #: 35288552
Share

Originally posted by El Jefe ↑

Was a decent half year.

Costs are high though at $620 p/t.
Thats why they switched to cash margin a couple quarters back, it looks a lot better.
Fines will drop these costs nicely so should be positive going into 1H19 when that’s fully ramped up. <$500 p/t maybe, which is an extra 20% profits.

In comparison;

$620 is close to double what the Pilbara players have quoted.
Personally I take them with a grain of salt right now, AJM have already changed figures upwards of 10% $310-> $350 which confirms this. See how they go in reality along with PLS. Whether iron removal will be more of an issue than expected and will affect the figures to get to spec, time will tell.

TAW costs currently very high as expected with estimates of ~$650 p/t after pre stripping, similar to current GXY costs and that guided to reduce below $400 p\t after fines installation and TA plant running 1H next year. Again still a lot to prove.

If none of these companies can get costs down <$500 p/t then a drop in spodumene prices makes starting new projects very marginal unless they are very favourable projects which bodes well for spodumene prices to stay steady for a while to come imo.

Expand

Or we can look to open an extremely low cost Brine project in Hombre Muerto, Argentina next door to FMC's super low cost project... that should sort it.

Now where to get the funds for such an endeavour?

GXY Price at posting: $2.89 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

IVR

Investigator Resources hits 8m @ 1.06% copper on-site Stuart Shelf JV project acreage

BYH

Bryah gains $408K government rebate for work on copper target Narracoota

AI stocks: What to expect in 2024-25

WC8

Leia pegmatite pulls up recoveries of 84% lithium for Wildcat in WA

Talking the US election, the spectre of Trump and what's hot on the ASX200: Wealth Within