Here's why we are under a bit of price pressure. Citi reckon that we can build SDV ourselves if a jv partner is not found. However, they seem to think it will involve a cap raising. See below.
DJ Galaxy Can Develop Sal de Vida Mine Itself -- Market Talk
2350 GMT - The consensus view is Galaxy Resources will find a partner to help develop its Sal de Vida project in Argentina despite current weakness in lithium prices. But what if it's unsuccessful? Citi thinks bulls shouldn't be alarmed, estimating Galaxy would need US$200 million more to cover Sal de Vida's $474 million capex. Assuming half the extra is funded in debt, selling $100 million of stock would prompt a 7% drop in Citi's stock valuation to A$3.70. Shares currently trade at A$2.13 after having slumped 43% last year. ([email protected]; @dwinningWSJ)
(END) Dow Jones Newswires
January 24, 2019 18:50 ET (23:50 GMT)
GXY Price at posting:
$2.07 Sentiment: None Disclosure: Held
