Galaxy Resources Limited (ASX: GXY)

GXY stock recovered by about 6.5% on January 12, 2018 post a steep decline of 10% a day before as investors were on a profit-booking spree. The group that manages Mt Cattlin North JV (with Traka Resources having 20% free carried JV interest) recently reported that 8 kilometres of Ground Penetrating Radar (GPR) has been completed on the joint venture tenement and GPR has successfully identified a number of pegmatite targets. While the group has signed offtake agreements for Mt Cattlin and its James Bay resource upgrade has been positive, we see more room for an upside with positive industry trends. We retain a “Hold” at the current price of $4.24
 

Orocobre Limited (ASX: ORE)

Post a drop of over 6.7% in last five days, ORE stock is up 3.7% on January 12, 2018. During 2017, the group had entered into a JV agreement with Advantage Lithium on its Cauchari Project and transferred a number of other projects to Advantage Lithium. It maintained its production target in 2017 that is 95%. It also came out with its lithium carbonate price guidance which is almost final for the first half of 2018. Market conditions are very tight which have led to increase in the contract prices by over 25% on prices received in December half 2017. ORE will achieve previous guidance of over US$11,000 per tonne for December quarter. ORE was also seen to ramp up production of lithium concentrate at its key mine. We maintain a “Hold” at the current price of $7.03
 

Pilbara Minerals Limited (ASX: PLS)

Up 3.07% on January 12, 2018, PLS again inched towards its 52-week high price. The group had signed an off-take agreement with Global Advanced Metals for tantalum products for its higher performance, and is set to become one of the major producers and suppliers in the global tantalum industry. It is expected that it will deliver strong earnings growth over the coming years given the exploration success and offtake agreements in place for its projects including Pilgangoora. We give a “Hold” at the current price of $1.175
 
Overall, the long-term potential of these stocks seems to be unwavering and the demand-supply scenario is expected to boost the momentum for some time.

 
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