The Galaxy Resources Limited (ASX: GXY) share price is up 11% to $1.27 today after touching a 52-week low of $1.08 yesterday. It was news that the lithium miner will report a US$150 million to US$180 million non-cash impairment as part of its FY 2019 financial results that sent investors scuttling for the exits yesterday.
Zooming out a little further Galaxy shares have tumbled around 55% over the past year in response to weaker spot lithium prices as more supply reportedly comes onto the market.
Galaxy is guiding the market for full year lithium production to hit between 180,000 to 210,000 dry metric tonnes largely from its WA-based Mt Cattlin operations. It also has mining tenments in Sal de Vida in Argentina and James Bay in Canada.
The company had cash on hand of US$176.3 million as at 30 June 2019 and bargain hunters or speculators are probably bidding the shares higher this morning.