What to expect if investors continue to dial back expectations
Chris Temple and I follow up on our discussion from yesterday regarding the drop in safe haven assets. We are not seeing a follow through today but we are seeing investors and companies dial back their expectations. Since the markets have been driven by high expectations there could be some significant changes if these expectations change to more show me not tell me.
Click download link to listen on this device: Download Show
That lasted for about 10 minutes…..
The “unstoppable” Galaxy Resources, bullish about global Lithium demand
LARA SMITH | FEBRUARY 27, 2017
“An outstretched hand is often bitten; unless that hand belongs to Galaxy Resources Limited (ASX: GXY) (GALXF), in which case it apparently gets filled with cash. Since the first lithium shipment left its Mt. Cattlin spodumene project only last month, Galaxy has moved to advance its South-American brine deposits, raising A$61m in a massive show of confidence…”
https://investorintel.com/market-analysis/market-analysis-intel/unstoppable-galaxy-lithium/
Ex, I believe you have liked this stock for a while, I will have a look. DT
Yes, I’ve been trading (GALXF) since 2012, but picked up most of my position over a period of time between 2013-2014 in the range of ($.03-$.08) and it got up near $.50 this January, and has pulled back some, currently trading at $.38.
They are one of the few real Lithium companies out there, are in production, have 3 large projects all moving forward (2 hard rock, 1 huge brine deposit), and previously built a world class battery factory in Asia that they used to process the Talison Lithium ore at, but sold it to an asian consortium.
Galaxy understands the whole process from discovery, to mining, to processing, to battery and are one of the few Lithium only producers. Outside of the larger chemical conglomerates (ALB, FMC, and SQM), There have only been 2 other companies to emerge as producers before them. 1) Talison who was taken over by Tianqui & Albemarle, and 2) Orocobre, who have ran into all kinds of production challenges with their Lithium brine project.
Galaxy has stepped out above the rest as the best Jr Producer, and they will likely grow through a few more acquisitions in the space over the next few years. They’ll need help partnering to finance their Sal de Vida brine project, but they just did a huge capital raise to fund the start of it along with more exploration at James Bay , and expansion of their production at Mt Cattlin.
_________________
For clarity there has been a 4th/5th producer to emerge just recently in the JV between Neometals and Mineral Resources (along with a 3rd partner Ganfeng – another asian consortium). Neometals is really more of a play on their unique Lithium processing technology and processing plant, and Titanium/Vanadium assets in symphony with their partial stake in the new production from Mt Marion. Mineral Resources also has another prospective hard rock deposit outside their partial stake in Mt Marion.
Here is the Galaxy Resource Corporate Presentation as a starting point:
(but it is out of date and could use refreshing as there has been a ton of newsflow over the last 6 months)
http://galaxylithium.businesscatalyst.com/media/presentations/GalaxyPres.pdf
Here is a link to info on their producing Mt Cattlin asset:
Here is a link to Galaxy’s Sal de Vida world class Lithium brine project:
Link to Galaxy Resources James Bay project, which they just announced a new exploration program on for 2017:
Here is a link to the Galaxy Resources thread on CEO.CA for more chatter, debates, news, and articles that relate to (GXY.AX) (GALXF).
Largest grid-tied Lithium ion Battery system deployed today in San Diego
MEGAN GEUSS – 2/24/2017
CA Public Utilities Commissioner: “We are far in advance of where we expected to be.”
“The two projects were built after state energy officials ordered power companies to add lithium-ion battery storage to their grids this past summer following a massive methane leak at Aliso Canyon in California that put the region in jeopardy for natural gas shortages. AES Energy Storage, a Virginia-based company that has been building utility-grade batteries since 2008, built the system for SDG&E.
The installation is currently the largest grid-tied lithium-ion battery system in the US. Tesla announced a similar 20MW, 80MWh system at the end of January in conjunction with Southern California Edison. That installation is based in Ontario, CA.
The Escondido system consists of 24 containers hiding nearly 20,000 modules that hold 20 batteries each. SDG&E said it hopes to have 330 MW of energy storage on its system by 2030.”
Speaking of Batteries…..
Cobalt prices have just been on a tear lately:
Hi Shad:
You sure are right about cobalt stocks.
Today was a good tell. CSK.V,CUZ.V,and CPO.V were all up today with good volume.
Not only that,they have been up over 100% since January 23rd.
I really missed the boat on the cobalt move.
Yes, I wasn’t fully invested enough in the Cobalt move myself, but caught a few rides. Really it was Robert Friedland’s very public talks and video talks about Cobalt & Copper being ever bit as important as Lithium to the emerging Battery and Energy Storage sectors. Everyone starting muttering…… “Cobalt, hmmm well ….. which companies are in Cobalt again?…..” and then it was the “Madness of Crowds” forming the next mania. The Battery sector has just been crazy for the last year whether Lithium, Copper, Graphite, Cobalt, Battery manufacturers, and then simultaneously run ups in Zinc stocks, Iron stocks, and even Uranium Stocks.
It’s like a Giant Game of Wack-A-Mole…… 🙂
4 Types of Investors: I, S, G and SPJ – which one are you?
The Next Big Rush
Feb 28, 2017
In the investing world, there are really 4 types of stock market investors.
1) Type I: Investors / Insiders – They fund the public companies with big checks and get warrants due to the increased risk.
2) Type S: Retail investors / speculators
3) Type G: General investors who are not dedicated to resource stocks, but become interested when times are good.
4) Type Six-Pack-Joe: That brother-in-law who is clueless about investing in general, let alone investing in mining stocks.
https://www.youtube.com/watch?v=Jg5WHQweckg&feature=youtu.be
Alterra Power declares CAD 0.0125 dividend
Feb. 21, 2017 9:25 AM ET|
Alterra Power (MGMXF) (AXY) declares CAD 0.0125/share quarterly dividend, in line with previous.
Forward yield 0.94%
Payable March 15; for shareholders of record Feb. 28; ex-div Feb. 24.
http://seekingalpha.com/news/3244761-alterra-power-declares-cad-0_0125-dividend
George Glasier: Cracks Beginning To Appear With Uranium Utilities
BY COLLIN KETTELL ON FEBRUARY 27, 2017
http://palisaderadio.com/george-glasier-cracks-beginning-to-appear-with-uranium-utilities/
” Who would have thought it would be this complicated?” “I guess everybody but you.”
To funny Mr. T
I do agree with all of the ideas you’ve presented in your post. They are very convincing and will certainly work. Still, the posts are very short for starters. Could you please extend them a bit from next time? Thanks for the post.
One thing I believe that is undermining The US and ultimately the markets is all the opposition Trump is facing by special interest groups that don’t want him to be President. By not allowing him to govern and lead effectively it makes the US look weak to the rest of The World.