Galaxy ups its lithium production guidance for 2021
(Kitco News) - Galaxy Resources (ASX: GXY), a leading producer and developer of lithium, reported today that its Mt Cattlin operation in Western Australia continues to operate at full rate with 40,261 dmt produced in Q2 2022, to the end of May. Spodumene product grade was 5.77% Li2O, in line with customer requirements.
The company said that in light of the sustained high production rate, full year guidance is increased to 195,000 – 210,000 dmt from the previous range of 185,000 – 200,000 dmt.
Galaxy added that it continues to experience strong demand for its spodumene concentrate. A 15kt shipment has been secured for June in addition to the 33.5 kt shipment which sailed in May. The first Q3 scheduled shipment is currently being finalised with pricing expected to be in excess of US$750/mt CIF for 6.00% Li2O. 2021 expected sales volumes continue to be in line with production.
The company said that the revised Mt Cattlin lithium mineral resources estimate as at 31 March 2021 stands at 131,800 tonnes of Li2O contained metal compared to 152,400 tonnes of Li2O as at 31 December 2020, whereas lithium reserves amounted to 84,000 tonnes Li2O compared to 89,900 tonnes as at December 31 2020.
Galaxy explained that the reduction in lithium reserves and resources was due to the resource model depletion of 392 kt of material mined at a grade of 1.6% Li2O; decline in grade due to the mining of higher grade material in Q1 2021 compared to the life of mine grade; reclassification of some material in a deeper lens to a lower category – this material is not currently in the mine plan; and updated geological model.
Galaxy Resources is a leading producer and developer of lithium with a diversified asset portfolio including an operational hard rock mine and concentrator in Western Australia (Mt Cattlin), a tier 1 brine development project in Argentina (Sal de Vida) and a strategic, hard rock spodumene project in Canada (James Bay).