GXY 0.00% $5.28 galaxy resources limited

JP Morgan Initiate Coverage on GXY - Overweight - Target $4.00, page-5

  1. 259 Posts.
    lightbulb Created with Sketch. 46
    Further to the above - I think this makes nice reading:

    Lithium market to remain tight through 2018
    Our global lithium S&D analysis supports market data and industry feedback that the
    spot lithium market remains very tight, despite some seasonal demand weakness
    around Chinese New Year. In the seaborne market, realized prices for major South
    American producers (ALB, SQM, FMC, ORE) continue to grind higher, and we
    expect the convergence between Chinese domestic prices and seaborne pricing to
    continue. The first wave of new hard rock supply has been ramped up and absorbed
    by the market. We believe concentrate demand in China is still high, and domestic
    production has increased. The news in early January that SQM and CORFO had
    reached an agreement enabling SQM to increase production triggered a broad sell-off
    in global lithium equities. It will take SQM 5-8 years to increase production rates to
    +100ktpa LCE, in our view. The equity sell-off has re-based valuations and delivered
    a second round of opportunities for institutional investors to gain lithium exposure.
 
watchlist Created with Sketch. Add GXY (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.