Quarterly Reports - December 2017
Perth, Jan 16, 2018 AEST (ABN Newswire) - Galaxy Resources Limited (ASX:GXY) (GALXF:OTCMKTS) ("Galaxy" or "Company") is pleased to report to shareholders its activities for the quarter ended 31 December 2017.
Mt Cattlin Operations
- Record production of 52,139 dry metric tonnes ("dmt") of lithium concentrate, an increase of 11% over Q3 2017
- Production for the quarter at an annualized rate of c.209,000 dmt tonnes per annum ("tpa") of lithium concentrate
- Record sales of 58,094 dmt of lithium concentrate, an increase of 39% over Q3 2017
- Average production cash costs (excluding royalties and marketing fees) of US$325 (A$423) per dmt produced
- Average realized selling price before royalties and marketing fees of US$868 (A$1,125) per dmt sold, an increase of 3% over Q3 2017
- Offtake agreements signed with multiple customers for 5 years for 100% of total planned lithium concentrate production
- EBITDA of A$34.2 million
Sal de Vida Project
- 344m depth exploration borehole developed into a production well
- Successful test work completed producing battery grade lithium carbonate and lithium hydroxide
- Scoping studies commenced for potential hydroxide sub-circuit and co-location of processing facilities
- Planning commenced for test evaporation pond and continuous pilot plant to be operational in 2018
James Bay Project
- Significant mineral resource upgrade to 40.8 Mt @1.40% Li20
- Project Notice submitted to both the Federal Government of Canada and the Quebec Government for determination
- Work on feasibility study advancing
- Ongoing engagement with leaders of the First Nation groups
- Cash on hand at 31 December 2017 of A$59.7 million
- Balance sheet debt free - BNP facility repaid in full
- Acquired a c.11.8% strategic shareholding in Lepidico Limited
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About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.