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The Galaxy Resources (ASX:GXY) share price is on watch. Here’s why

Mining ASX share price on watch represented by miner making screen with hands
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The Galaxy Resources Limited (ASX: GXY) share price is one to watch this morning after a quarterly update from the Aussie lithium miner.

Why is the Galaxy Resources share price on watch?

Galaxy this morning provided a quarterly results update for the quarter ended 31 March 2021 (Q1 2021). Shares in the lithium miner could be on the move following the brief update, ahead of its March 2021 quarterly activities report release on 21 April.

Galaxy’s Mt Cattlin site has successfully ramped back up to nameplate capacity during Q1 2021. Mt Cattlin achieved quarterly production of 46,588 dry metric tonnes of lithium concentrate during the period. That represents a 39.7% increase on Q4 2020 at an improved recovery of 60%.

The Galaxy Resources share price is one to watch as investors digest the latest numbers. Galaxy reported product quality of 5.8% lithium oxide in line with customer requirements.

The Aussie mining group shipped 29,917 dry metric tonnes of lithium concentrate during Q1 2021. Galaxy delayed a second shipment of 15,000 dry metric tonnes until early April due to the late arrival of a vessel.

Galaxy reported its contracting arrangements for this quarter are progressing well with pricing “well in excess” of US$600 per dry metric tonne.

It will be interesting to see how the Galaxy Resources share price performs in early trade following the update. Further information is likely to follow in the quarterly activities report on 21 April and the investor conference call at 10 am AEST on the same day.

What are the latest performance numbers for Galaxy?

Shares in the Aussie lithium producer jumped 2.8% on Friday to close at $2.98 per share. That means the Galaxy Resources share price is now up 263.4% in the last 12 months. Fellow lithium miners Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) have also seen strong gains as lithium prices have soared.

Galaxy currently boasts a market capitalisation of $1.5 billion prior to Monday’s open when the S&P/ASX 300 Index (ASX: XKO) is tipped to edge higher.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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