Good News & Bad News, page-7807

A snippet from GXY's new offtake announcement today, in reference to how they are hanging tough with their spod pricing. Things are changing, some leverage flipped back to the miners;

Due to current soft market conditions, Galaxy’s near-term sales volumes and shipping schedules will be largely dictated by the spot price that Galaxy is willing to accept and the pace customers are able to destock their inventory levels. Mt Cattlin’s current final product inventory levels plus forecast production for Q4 2020 are sufficient to meet customer requirements for this quarter.

Simon Hay, Galaxy’s CEO said:
“We are pleased to welcome Chengxin as a new major offtake partner, further diversifying and strengthening Galaxy’s customer base to support Mt Cattlin’s operations. Chengxin also has expansion plans underway to increase production capacity in preparation for the impending lithium demand surge in the medium to long term.

As previously advised, we expect to conclude 2020 with additional shipments to customers and for Galaxy’s spodumene inventory to return to normal levels. The drawdown of inventory combined with strong customer indications for demand in 2021 has also led Galaxy to examine the potential ramp up of Mt Cattlin back to full rate in 2021, although there will need to be sustained price increases for us to commit to the return of higher production levels.”