Citi’s visit to Galaxy Resources’ Mt Cattlin site showed operations back at full capacity and with a quick turnaround. As observed by Citi, customers seem willing to accept lower spodumene grades if this unlocks more lithium units with better recovery.
An update to the Mt Cattlin site plan has led to a marginal lift in Citi’s 2021 operating income forecast.
A Neutral rating is retained with the target rising to $3.10 from $3.
Sector: Materials.
Target price is $3.10.Current Price is $2.56. Difference: $0.54 – (brackets indicate current price is over target). If GXY meets the Citi target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
