Insights

Why the Galaxy Resources (ASX:GXY) share price is on watch

The Galaxy Resources Ltd (ASX: GXY) share price is one to watch this morning after a reserve update from the Aussie lithium miner.
The post Why the Galaxy Resources (ASX:GXY) share price is on watch appeared first on The Motley Fool Australia. –

A man with binoculars crouched in the bush, indication a share price on watch

The Galaxy Resources Ltd (ASX: GXY) share price is one to watch in early trade after an update on its Sal de Vida lithium project in Argentina.

Why is the Galaxy Resources share price on watch?

Shares in the Aussie lithium miner could be on the move this morning after a resource and reserve update as well as a development plan update for the major project site.

Galaxy Resources today reported an increase in resources and reserves at the Sal de Vida site in Catamarca, Argentina. That comes on the back of assessing hydrogeological data from the drilling of two production wells at the site.

The revised Brine Resources has increased 27% from prior estimates to 6.2 million tonnes of lithium carbonate equivalent (LCE). Galaxy also reported a 13 per cent increase in reserves estimates to 1.3 million tonnes of recoverable LCE.

The Galaxy Resources share price is one to watch in early trade on the back of the update. As well as the upgraded resource and reserves, Galaxy provided a Sal de Vida development plan. That follows the completion of the 2021 feasibility update for the wholly-owned site.

Galaxy reported front-end engineering design had been completed, confirming the lowest quartile capital intensity and operating costs for the site. The updated brine reserve estimate of 1.3 megatonnes of LCE reportedly supports a 44-year project life based on reserves only.

The Aussie lithium miner is on watch after reporting a target production of 32,000 tonnes per annum of battery-grade lithium carbonate. 

Shares in the Aussie lithium miner have been surging higher over the last year or so. In fact, the Galaxy Resources share price has climbed 41.1% higher in the last 12 months, including a 4.5% gain in yesterday’s session.

Foolish takeaway

The Galaxy Resources share price has been climbing higher of late and is on watch early today after its positive update. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

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.

The post Why the Galaxy Resources (ASX:GXY) share price is on watch appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!