2318 GMT - Galaxy Resources' (GXY.AU) agreement of higher lithium concentrate prices from its Mt Cattlin mine in Western Australia has helped to underpin a 22% uplift in Bell Potter's price target to A$0.71/share. It has also bolstered confidence that Galaxy can generate stronger cash flow to support the development of its high-quality Sal de Vida brine project in Argentina. Galaxy recently negotiated a price for lithium concentrate deliveries in 2017 that's potentially 50% higher than in 2016, reflecting tight global supply and strong demand from Chinese battery makers. Bell Potter keeps a speculative buy call on Galaxy, which last traded at A$0.595. ([email protected]; @dwinningWSJ)
(END) Dow Jones Newswires
January 09, 2017 18:18 ET (23:18 GMT)
GXY Price at posting:
59.8¢ Sentiment: None Disclosure: Held
