Hard rock spodumene producer – Galaxy Resources (ASX: GXY) has started 2019 with a bang, reporting a net profit (after taxes) of US$3.5 million for the half year reporting season (ending December 31 2018). The Perth based spodumene producer also boasted a 60% increase in its total revenue up to $US154 million.
The profit numbers exclude the final payments made by POSCO for the sale of various tenements in the northern part of Salar del Hombre Muerto for the total price of $US 280 million.
Galaxy sold a total of 159,255 dry metric tonnes of spodumene in FY2018 and realised significantly higher selling prices than FY2017. The company also has no debt as of December 2018 and a net cash position of almost $US 25 million, positioning itself as one of the safest investments across the Australian lithium market.
Galaxy Resources remains committed to optimizing its current lithium production facilities, hard rock mines, and brine assets in Australia, Canada and Argentina. It wholly owns and operates the James Bay lithium pegmatite project in Quebec, Canada and the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate.