Galaxy Resources has continued to perform positively at its global operations at Mt Cattlin (Western Australia), Sal de Vida (Argentina) and James Bay (Canada) throughout the December quarter to finish the period with zero debt.
At Mt Cattlin, Galaxy has announced a 42 per cent increase in total measured, indicated and inferred resource tonnes, up from 11.8 million tonnes to 16.7 million tonnes at 1.28 per cent grade, containing 214,400 tonnes of lithium.
This follows the completion of drilling activities at Mt Cattlin during the second half of last year.
During the December quarter, Galaxy sold 39,682 dry metric tonnes of lithium concentrate in three shipments from Mt Cattlin, which was a 34 per cent increase on the previous quarter.
According to Galaxy, there has been significant growth in unit electric vehicles production and sales were volumes within all key global markets year on year during 2018, including China (60 per cent), the United States (81 per cent) and Europe (34 per cent through to November last year).
“China’s dominance as the global leader in electric vehicle production was further exemplified by a second straight year of growth that exceeded market and industry analyst estimates,” Galaxy said in an ASX statement.
“Key indicators point to a more buoyant market environment throughout 2019, with Chinese domestic prices for lithium stabilising during the last quarter and the combination of strong demand growth and supply challenges to support a favourable market moving forward.”
Galaxy has set a guidance target of 40,000 to 45,000 dry metric tonnes in the first quarter of 2019 at Mt Cattlin, and 180,000 to 210,000 dry metric tonnes for the full year.
The company has also developed the workplan and budget for development works for the 2019 financial year at Sal de Vida, which hosts one of the world’s largest and highest quality undeveloped lithium brine deposits.
This would enable the company Board to commit to the full updated project capital estimate required for the construction of the Sal de Vida project, which remains undisclosed.
Galaxy has also commenced construction work of a 15-hectare pilot evaporation pond at Sal de Vida, with 50 per cent of earthworks progress completed at the end of the December quarter.