Material Matters: Copper, Lithium & Closures

A glance through the latest expert views and predictions about commodities. Base metals; cost curves; lithium; and mine closures.
Read MoreA glance through the latest expert views and predictions about commodities. Base metals; cost curves; lithium; and mine closures.
Read MoreAmid a lack of certainty about when lithium prices will improve Australian spodumene producers are continuing to curtail production.
Read MoreCosts disappointed Morgan Stanley in the December quarter, affected by the DMS trials that were called off. 2020 production guidance is lower than previously outlined.
Read MoreThe stronger-for-longer lithium story is not exactly panning out as such, with a global oversupply emerging and the upbeat blue sky stories supplanted by tales of woe from the emerging producers. The same thing’s happening with that other wonder battery metal, graphite.
Read MoreGalaxy Resources has made a strategic equity investment of $22.5m in Alliance Mineral ((A40)). This takes its holding to 12%. Alliance Mineral is currently ramping up the Bald Hill lithium project in Western Australia and has guided to production of 240,000t of spodumene concentrate in FY20.
Read MoreGrade, recoveries and production all rose in the December quarter after a weak September quarter. Guidance for 2019 is below UBS forecasts, with the company targeting first quarter spodumene production of 40-45,000t, and 180-210,000t in 2019.
Read MoreThe company has executed a binding agreement with POSCO to sell a package of tenements on the northern basin of Salar del Hombre Muerto for US$280m. Morgan Stanley suggests the deal could add around $0.90 per share to its base case valuation.
Read MoreA review of Morgan Stanley’s commodity deck has driven upgrades for metals and bulks while earnings estimates for lithium players are reduced. The market cap weighted downside of -6% drives the broker’s industry view to In-Line from Attractive.
Read MoreThe company has updated the definitive feasibility study for the Sal de Vida project and announced the sale of the northern tenements to help fund its development.
Read MoreGalaxy Resources ((GXY)) has found a neat solution to its funding needs for the Sal de Vida lithium brine project in Argentina, brokers observe. The company has entered a non-binding agreement with POSCO to sell 28% of the Sal de Vida measured and indicated (M&I) resource for US$280m. This will enable Galaxy to largely fund development of the broader portfolio.
Read MoreLithium miner, Galaxy Resources surprised yesterday by selling off some of its South American acreage, a move the market loved, sending the shares up 18% at one stage in trading before they settled back to close the day 14.3% higher at $3.42.
Read MoreNo one much cared earlier this year when there was a particularly nasty takeover battle between Lithium Australia (LIT) as the suitor and Lepidico (LPD) as the target.
Read MoreShares lithium producer Galaxy Resources surged and sagged yesterday in the wake of the release what was on the whole an encouraging production report for the three months to September.
Read MoreFirst half loss of $6.5m compares with Macquarie’s expectations for break-even. The result represented two months of commercial production from Mount Cattlin.
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