Galaxy Resources Limited

GXY Details
 
Repaid BNP Debt Facility in full and became debt free in December quarter: Up 11.5% on February 07, 2018 as the market stabilized after falling about 13.25% in last five days, Galaxy Resources Limited (ASX: GXY) seems to be back on track. In December quarter, GXY has repaid the BNP Debt Facility in full and now the company’s balance sheet is debt-free. The cash on hand at 31^st December 2017 is of A$59.7 million. Further, during the December quarter, GXY acquired 12% strategic equity shareholding in Lepidico Ltd, through a private placement at 1 cent per share. Moreover, at Mt. Cattlin, GXY produced 52,139 dry metric tonnes (dmt) of lithium concentrate, which is an increase of 11% over Q3 2017. The company achieved this at an annualized rate of c.209,000 dmt tonnes per annum of lithium concentrate. GXY sold 58,094 dmt of lithium concentrate during the quarter, reflecting an increase of 39% over Q3 2017. The company has also signed multiple customers for 5 years for 100% of total planned lithium concentrate production. Additionally, for Sal de Vida Project, the test work completed successfully producing battery grade lithium carbonate and lithium hydroxide. The planning has started for test evaporation pond and continuous pilot plant to be operational in 2018. For James Bay Project, there has been a significant mineral resource upgrade to 40.8 Mt @1.40% Li₂O. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of  $3.21
 

GXY Daily Chart (Source: Thomson Reuters)
 

Pilbara Minerals Limited

PLS Details

Ramped up Pilgangoora Stage 1 construction activities in December quarter: Pilbara Minerals Limited (ASX: PLS) during December quarter, ramped up the Pilgangoora Stage 1 construction activities and signed Mine Gate Sale Agreement with Atlas Iron for the proposed sale of a minimum 1.0Mt of run-of-mine lithium-tantalum ore. Moreover, PLS has finalized off-take agreement for Stage 2 production with leading Chinese automotive group Great Wall to support the expansion to 5Mtpa and also signed two-year tantalite off-take agreement with Global Advanced Metals Greenbushes. Additionally, PLS at 31 December 2017 had an unrestricted cash balance of $71.97M; and during the quarter, PLS had received cash proceeds of $28M from the Great Wall investment and $12.8M from option conversions. On the other hand, PLS stock has fallen 15.34% in last five days as on February 06, 2018 but rose 6.3% on February 07, 2018 with recovery in the market. PLS stock was included in the benchmark S&P/ASX 200 index effective from 18^th December 2017. We have a “Hold” recommendation on the stock at the current price of $0.85
 

PLS Daily Chart (Source: Thomson Reuters)
 

Orocobre Limited

ORE Details
 
Positive CAU11 drilling results: Orocobre Limited (ASX: ORE) stock rose 3.6% on February 07, 2018 after the company gave the update on the brine sampling of diamond drill hole CAU11 in the Cauchari JV property. The sample of CAU11 shows the brine flow rate of 19 litres per second (l/s) at 515 mg/l Lithium and 4,577 mg/l Potassium, from a newly discovered deep sand unit. This flow rate is at the upper limit of the pump capacity used for the test. Moreover, the test entailed 18 brine samples with concentration of 517 mg/l Lithium and 5,319 mg/l Potassium in hole CAU08 in the SE Sector and the brine from CAU11 and CAU8 has low Mg/Li ratios averaging 2.6:1 and 2.4:1, respectively.
 

Cauchari Drill Holes (Source: Company Reports)
 
Further, the drilling at Rotary hole CAU07 is completed and will undergo pumping tests in February 2018. The group has also closed its retail entitlement offer and announced for a retail shortfall bookbuild as full retail entitlements were not exercised by the shareholders. Meanwhile, ORE stock has risen 10.02% in three months as on February 06, 2018 with a 12.3% drop in last five days. We give a “Hold” recommendation on the stock at the current price of $6.53
 

ORE Daily Chart (Source: Thomson Reuters)
 

Kidman Resources Limited

KDR Details

Completed strategic JV with SQM: Kidman Resources Limited (ASX: KDR) during the December quarter has completed its strategic JV with SQM for the construction and vertically-integrated, sustainable production of Mt Holland Lithium Project. The WA Government has granted ‘Lead Agency Service’ status to the Mt Holland Project. Further, the Scoping Study and new drill program results are announced for the Earl Grey Project within the Mt Holland lithium tenements. Earl Grey Project Mineral Resource estimate is due in March quarter 2018. Moreover, the exploration at the Bounty Prospect within the Mt Holland tenements showed geological and mineralisation continuity. The company is continuing with its program to divest non-core assets as planned.
 

Mt Holland Project (Source: Company Reports)
 
Additionally, KDR has appointed two new Directors, including the appointment of resources industry leader John Pizzey as Non-Executive Chairman. In addition, KDR has reported cash at bank of $5.4m as at 31 December 2017. With the market headwinds settling a bit and the group having good potential, we give a “Buy” recommendation on the stock at the current price of $1.84
 

KDR Daily Chart (Source: Thomson Reuters)
 

Altura Mining Limited

AJM Details

Commissioning of Altura Lithium project on schedule for Q1 2018: Altura Mining Limited (ASX: AJM) is continuing well with the construction activities at Pilgangoora nearing completion and the Altura Lithium project commissioning is on schedule for Q1 2018. The first lithium concentrate sales is also scheduled for Q2 2018. This will position the company to become the first major producer in 2018. Further, the Definitive Feasibility Study for Stage 2 expansion of the Project is expected to be completed in April 2018, which will examine the potential doubling of production at the Altura Lithium Project to 440,000 tonnes per annum (tpa). Moreover, the company has announced the upgraded JORC Ore Reserve and Mineral Resource estimates, including significant portions in the Proved and Measured categories. Additionally, the Southern Ridge Deposit at Pilgangoora, that had displayed significant potential, will be infill drilled to improve the Project’s reserve and resource estimates. The infill drilling on this prospect was planned to commence in January 2018.
 

Altura Exploration Targets (Source: Company Reports)
 
AJM has also planned to explore the potential of each of its other tenements located in the Pilbara region of Western Australia. For this several targets have been identified. With the lithium stocks resurging, AJM also rose 10% on February 07, 2018 post falling 25% in three months as on February 06, 2018. We give a “Hold” recommendation on the stock at the current price of $0.33
 

AJM Daily Chart (Source: Thomson Reuters)

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