The Galaxy Resources Limited
(ASX: GXY) share price is falling after the lithium company gave a shipment update.
Galaxy is a lithium business that has hard rock mines and brine assets in Australia, Canada and Argentina. It also owns lithium production facilities. It wholly owns the Mt Cattlin mine in Ravensthorpe, Western Australia. One of Galaxy’s key assets is the Sal de Vida lithium project which the company says has the potential to be an excellent low-cost brine-based lithium carbonate production facility.
What’s Going On At Galaxy?
The Galaxy share price is down around 4% after providing an update about its Mt Cattlin shipment guidance for the second quarter of 2019, being the June 2019 quarter.
To date in the second quarter of 2019, Galaxy has completed two shipments totalling approximately 30,000 dry metric tonnes (dmt).
However, the planned third shipment of 15,000 dmt was previously expected to leave the Esperance port before the end of the second quarter, but it has been delayed and will now form part of the shipment scheduled for July 2019, which is in the next quarter.
Galaxy said it’s currently working with its customers to finalise its shipping schedule for the third quarter of 2019.
Does This Matter?
The lithium miner will still (probably) be reporting the same amount of shipment for 2019, it’s just that the last shipment has been delayed by a month.
However, investors may be worrying about why the shipment was delayed. Are there going to be more delays for future shipments? Uncertainty can make investors sell even if there is nothing wrong for the longer term.
Lithium does seem to have a promising future with growing demand due to home batteries and electric vehicles. But it’s very difficult to predict what a fair price for lithium will be in the future, which is why it’s so hard to say what Galaxy’s future cashflows will be.
It is that difficulty which motivates me to think about growth businesses, like the ones in the free report below, where it’s easier to estimate what their futures look like.
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