Galaxy Resources Ltd (ASX: GXY)

GXY Details

Speculation on deal with Panasonic: Galaxy Resources has been seen to be benefitting from the current lithium supply and demand scenario, and is in a strong position at the back of growth boost expected to be coming in from electric vehicle industry.The stock of the company surged up 5.8% on October 03, 2017 as the speculation around the group bagging a deal with Tesla battery supplier Panasonic is doing the rounds in the market. It has further been indicated that GXY has shipped its product from Mt Cattlin operation to Japan recently, in relation to the above speculation.

GXY has signed agreements for selling about 120k tonnes of concentrate from Mt Cattlin in year 2017 and is on track to provide quality lithium while meeting the demand for lithium-ion batteries. The group has been on discussions with large car manufacturers with regards to supplying lithium from its world class assets. GXY stock has moved up about 70% in last three months, as at October 02, 2017. We maintain our “Hold” recommendation at the current price of $ 2.90

Orocobre Ltd (ASX: ORE)

ORE Details

Positioned itself as one of the lowest cost producers:The stock of Orocobre rose up about 2.7% on October 03, 2017 with the boost in the lithium sector at the back of talks related to speculative deal of GXY and the recent lithium supply deal between Pilbara Minerals and Great Wall Motors. ORE stock has moved up about 68% in the last six months (as at October 02, 2017) and is now trading at high levels. The group seems to have been benefitting from its assets and had reported profit of US$19.4 million in FY17 (although impacted by impairment of Borax Argentina and sale of assets but a turnaround over FY2016 loss of US$22 million). Lately, it has been reported that Advantage Lithium acquired an interest in the group’s Cauchari project and the latter announced for the initial results from the first set of composite brine samples from hole CAU10 in the SE sector of Cauchari returning an average lithium grade of 678 milligrams per liter (mg/l) with sample results ranging from 585 to 724 mg/l lithium and excellent Mg/Li ratios averaging 2.1:1.The group is progressing well in terms of its growth plans for Olaroz Phase 2 and lithium hydroxide plant. ORE also now has a strong position as one of the lowest cost producers with gross operating margins of 62% with lithium production costs at US$3,710/tonne.

Given the industry dynamics and benefits from developmental efforts at assets including Olaroz lithium facility, more momentum is expected in the future. We maintain our “Hold” recommendation at the current price of $ 4.83


Properties held by ORE (Source: Company Reports)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.