Galaxy Resources Limited

GXY Details
· Binding agreements for Mt Cattlin Project with Chinese customers: Galaxy Resources Limited (ASX: GXY) stock made an outstanding rally of over 11.95% on 14 December 2016 driven by a positive milestone. Galaxy Resources reported that they signed binding agreements with their current China-based buyers, to sell 120,000 tonnes of lithium concentrate in 2017 from the Mt Cattlin Project in Ravensthorpe, Western Australia, for US$830 per tonne (minimum 5.5% Li₂O). Clients are paying a further US$15/t for every 0.1% improvement in grade of Li₂O delivered, leading to an agreed price of up to US$905/t for a 6% lithium concentrate. GXY issued a guidance of 160,000 tonnes of lithium concentrate production, based on over 50% recovery. GXY continues to focus on their Mt Cattlin processing plant and build incremental production for current and potential customers.

· Recommendation: GXY stock has surged about 268% this year to date (as of 13 December 2016). We give a “Hold” recommendation on the stock at the current price of - $ 0.51

Mining Commencement (Source: Company Reports) 

Syrah Resources Limited

SYR Details
· Takeover speculation lifted the stock: Syrah Resources Limited (ASX: SYR) stock reported an outstanding rally of over 14.4% on 14 December 2016 due to a speculation around a takeover offer from South32. Meanwhile, the group’s core Balama Project is on track to start from the second quarter of 2017. Balama has reported for higher concentrate grades and the group is making efforts to cut downstream processing costs. The group released US$30 million for the Balama Project working capital and has a cash reserves of US$35 million. Syrah is also developing initial Commercial Plant in Louisiana for 60ktpa capacity.  Test work at the Perth-based Technology Centre is ongoing. Syrah continues to pursue discussions with customers from spherical graphite and byproduct markets for Balama.

· Recommendation: SYR stock corrected over 58.8% in the last six months (as of 13 December 2016). We give a “Buy” recommendation at the current price of - $ 3.02
Balama Project timeline (Source: Company Reports)

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