Galaxy finishes year within guidance despite Mt Cattlin slowdown

Image: Galaxy Resources

Galaxy Resources has closed 2019 with quarterly lithium production at the upper end of its guidance with 43,222 dry metric tonnes at the Mt Cattlin mine in Western Australia.

The mine was anticipated to produce 35,000 to 45,000 dry metric tonnes of lithium concentrate during the December quarter despite a slowdown in operations.

This backs up the company’s strong production result of 56,406 dry metric tonnes in the June quarter, surpassing its 45,000 to 50,000 guidance.

Galaxy also hit the midpoint of its 45,000 to 55,000 September quarter guidance, with 50,104 dry metric tonnes produced during the period.

In the December quarter, Galaxy also sold 29,778 dry metric tonnes of lithium concentrate, just shy of its 30,000 to 45,000 dry metric tonne guidance.

Of these sales, 14,778 dry metric tonnes went for shipment without the remaining 15,000 dry metric tonnes due to a customer’s request to delay the shipment until the first quarter of this year.

Galaxy announced its plan to cut back activities at the Mt Cattlin mine in November to ride out poor lithium market conditions until the metal demand improves.

The company is set to prioritise value over volume this year by reducing costs, maintaining positive cash margins and preserving mine life while meeting the demand of its existing prepaid customers.

Should lithium market conditions improve, Galaxy has assured its stakeholders that production could be ramped up again swiftly and efficiently to meet demand.

Galaxy intends to release its full fourth quarter results on January 23.

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