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Galan Lithium’s PEA returns robust economics for 25-year Candelas Lithium project

Special report: A competitive cash production cost for lithium carbonate of US$4,277/t positions the Candelas project as a low-cost developer … Read…

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This article was originally published by Stockhead

A competitive cash production cost for lithium carbonate of US$4,277/t positions the Candelas project as a low-cost developer in the lithium industry.

Galan Lithiums’ preliminary economic assessment (PEA) for the Candelas Project in Argentina’s Catamarca Province has returned ‘robust’ economic results, featuring a pre-tax NPV of US$1,225 million and IRR of 29.9% with a four-year payback period.

The study has estimated a production profile of 14,000 tonnes per annum of battery grade lithium carbonate (LCE) product including some technical grade product for the first three years.

This means Galan (ASX:GLN) now has two PEA study level projects with combined long term production potential of 34,000 tpa LCE.

The company believes the outcomes at Candelas can be further optimised and enhanced to refine the project’s potential.

Pic: Supplied

‘Projects among the lowest cost of any future products’

Galan (ASX:GLN) managing director Juan Pablo Vargas de la Vega said: “We remain excited about the potential value add for our shareholders once we enter the lithium market with prices expected to be +US25k/t LCE.

“Our projects would now be among the lowest cost of any future producers in the lithium industry, due to their high grade and low impurity setting, green credentials and a low carbon footprint.

“Galan is excited to be a part of the solution to the global decarbonisation story.”

Optimising next steps

Vega added that the company now has a solid commercial base to move forward with a clean, low-tech, and low energy solution.

“We also believe we have capability to further review and reduce Opex and Capex.

“We have learnt so much more about Candelas on this journey and will continue to apply our findings in optimising our next steps at the pre-feasibility and definitive feasibility studies.

“Importantly, we will also continue to review the possibility to produce lithium chloride concentrate to reduce time to market and capital expenditure at both of our projects.

“As a result, we remain determined to bring our projects to market in the shortest possible time so that we can supply lithium for future lithium battery requirements needed for electric vehicles.”

Preparation of the project’s PEA was managed by Ad Infinitum and Galan’s project manager for the engineering inputs including the recovery method, project layout and infrastructure, capital cost and operating cost estimates and overall economic evaluation.

The other sections of the study were managed by consultants and employees of Galan Lithium Limited.

Market outlook

Galan has assumed a conservative view to long term lithium pricing and as a result, has taken a mid-point between the long-term pricing between the 17th and 18th Editions from Roskill of US$18,594/t.

Roskill expects contract prices for lithium carbonate battery grade and hydroxide to remain near to or above US$25,000/t on a long-term real (inflation adjusted) basis.

After softening in 2019 and 2020, prices on a nominal basis the long-term lithium carbonate battery grade price is projected to rise to around US$30,000-40,000/t .

Strong demand growth for refined lithium products is forecast to be sustained by expanding production, new market entrants and the draw-down of stockpiled material through to 2026, though a fundamental supply deficit is expected to form in the late 2020s.

Significant further investment in expanding production capacity at existing operations, in addition to new projects and secondary lithium sources will be necessary to meet projected demand growth through to 2030.

 


 

 

This article was developed in collaboration with Galan Lithium, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Galan Lithium’s PEA returns robust economics for 25-year Candelas Lithium project appeared first on Stockhead.



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FY2022 Earnings Estimate for BHP Group (NYSE:BHP) Issued By Jefferies Financial Group

BHP Group (NYSE:BHP) – Stock analysts at Jefferies Financial Group decreased their FY2022 earnings estimates for shares of BHP Group in a research report…

BHP Group (NYSE:BHP) – Stock analysts at Jefferies Financial Group decreased their FY2022 earnings estimates for shares of BHP Group in a research report issued to clients and investors on Tuesday, January 18th. Jefferies Financial Group analyst C. Lafemina now anticipates that the mining company will earn $5.30 per share for the year, down from their previous estimate of $5.32. Jefferies Financial Group currently has a “Hold” rating and a $71.00 price target on the stock.

A number of other research analysts also recently issued reports on the company. Royal Bank of Canada cut their price target on BHP Group from GBX 2,400 ($32.75) to GBX 2,300 ($31.38) in a report on Thursday. Zacks Investment Research downgraded BHP Group from a “hold” rating to a “strong sell” rating and set a $72.00 price target on the stock. in a report on Friday. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating and three have given a buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $620.50.

Shares of NYSE:BHP opened at $68.03 on Thursday. BHP Group has a 12-month low of $51.88 and a 12-month high of $82.07. The business’s fifty day simple moving average is $59.11 and its 200-day simple moving average is $62.40. The company has a current ratio of 1.63, a quick ratio of 1.36 and a debt-to-equity ratio of 0.33.

Several institutional investors have recently bought and sold shares of the company. United Capital Financial Advisers LLC boosted its position in shares of BHP Group by 3.3% in the 2nd quarter. United Capital Financial Advisers LLC now owns 4,729 shares of the mining company’s stock worth $344,000 after purchasing an additional 150 shares in the last quarter. CAPROCK Group Inc. boosted its position in shares of BHP Group by 2.9% in the 2nd quarter. CAPROCK Group Inc. now owns 5,585 shares of the mining company’s stock worth $407,000 after purchasing an additional 160 shares in the last quarter. Spire Wealth Management boosted its position in shares of BHP Group by 3.5% in the 4th quarter. Spire Wealth Management now owns 4,919 shares of the mining company’s stock worth $297,000 after purchasing an additional 167 shares in the last quarter. Assetmark Inc. boosted its position in shares of BHP Group by 7.8% in the 3rd quarter. Assetmark Inc. now owns 2,753 shares of the mining company’s stock worth $147,000 after purchasing an additional 199 shares in the last quarter. Finally, Prio Wealth Limited Partnership boosted its position in shares of BHP Group by 5.1% in the 3rd quarter. Prio Wealth Limited Partnership now owns 4,150 shares of the mining company’s stock worth $222,000 after purchasing an additional 200 shares in the last quarter. 6.73% of the stock is owned by hedge funds and other institutional investors.

BHP Group Company Profile

BHP Group Ltd. engages in the exploration, development, production and processing of iron ore, metallurgical coal and copper. It operates through the following segments: Petroleum, Copper, Iron Ore and Coal. The Petroleum segment explores, develops and produces oil and gas. The Copper segment refers to the mining of copper, silver, lead, zinc, molybdenum, uranium and gold.

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Brokers Set Expectations for Yamana Gold Inc.’s Q4 2021 Earnings (TSE:YRI)

Yamana Gold Inc. (TSE:YRI) (NYSE:AUY) – Research analysts at Raymond James raised their Q4 2021 earnings per share estimates for shares of Yamana Gold…

Yamana Gold Inc. (TSE:YRI) (NYSE:AUY) – Research analysts at Raymond James raised their Q4 2021 earnings per share estimates for shares of Yamana Gold in a research report issued on Monday, January 17th. Raymond James analyst F. Hamed now expects that the company will earn $0.11 per share for the quarter, up from their previous estimate of $0.09. Raymond James has a “MARKET PERFORM” rating on the stock.

Yamana Gold (TSE:YRI) (NYSE:AUY) last issued its quarterly earnings results on Thursday, October 28th. The company reported C$0.09 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of C$0.09. The business had revenue of C$569.40 million during the quarter.

A number of other research analysts have also issued reports on YRI. Peel Hunt reduced their price target on Yamana Gold from C$9.75 to C$9.50 and set a “buy” rating for the company in a research report on Monday, November 15th. Royal Bank of Canada set a C$5.00 price target on Yamana Gold and gave the company a “sector perform” rating in a research report on Thursday, December 2nd. National Bankshares upped their price target on Yamana Gold from C$6.75 to C$7.00 in a research report on Friday, January 7th. Credit Suisse Group reissued an “outperform” rating and set a C$5.50 price target on shares of Yamana Gold in a research report on Tuesday, December 7th. Finally, CSFB set a C$5.50 price target on Yamana Gold and gave the company an “outperform” rating in a research report on Tuesday, December 7th. Three analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to MarketBeat, Yamana Gold has an average rating of “Buy” and an average target price of C$7.70.

YRI stock opened at C$5.44 on Wednesday. The company has a market capitalization of C$5.24 billion and a PE ratio of 31.09. The stock’s 50 day moving average is C$5.21 and its two-hundred day moving average is C$5.26. The company has a quick ratio of 1.13, a current ratio of 1.83 and a debt-to-equity ratio of 15.07. Yamana Gold has a 52-week low of C$4.78 and a 52-week high of C$6.69.

In other news, Senior Officer Yohann Bouchard purchased 20,000 shares of the business’s stock in a transaction on Friday, November 5th. The stock was purchased at an average price of C$5.01 per share, with a total value of C$100,200.00. Following the acquisition, the insider now directly owns 158,888 shares in the company, valued at approximately C$796,028.88. Also, Director Peter Marrone sold 100,000 shares of the company’s stock in a transaction that occurred on Monday, January 17th. The shares were sold at an average price of C$5.22, for a total value of C$522,000.00. Following the completion of the transaction, the director now directly owns 2,092,112 shares of the company’s stock, valued at approximately C$10,920,824.64.

The firm also recently announced a quarterly dividend, which was paid on Friday, January 14th. Investors of record on Friday, December 31st were paid a dividend of $0.038 per share. This is an increase from Yamana Gold’s previous quarterly dividend of $0.04. The ex-dividend date was Thursday, December 30th. This represents a $0.15 annualized dividend and a yield of 2.79%. Yamana Gold’s dividend payout ratio is presently 62.14%.

About Yamana Gold

Yamana Gold Inc, together with its subsidiaries, operates as a precious metal producer. It has gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile, and Argentina producer. The company was formerly known as Yamana Resources Inc and changed its name to Yamana Gold Inc in August 2003.

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FY2021 EPS Estimates for Hudbay Minerals Inc. Raised by Raymond James (TSE:HBM)

Hudbay Minerals Inc. (TSE:HBM) (NYSE:HBM) – Raymond James raised their FY2021 earnings per share (EPS) estimates for Hudbay Minerals in a note issued…

Hudbay Minerals Inc. (TSE:HBM) (NYSE:HBM) – Raymond James raised their FY2021 earnings per share (EPS) estimates for Hudbay Minerals in a note issued to investors on Monday, January 17th. Raymond James analyst F. Hamed now forecasts that the mining company will post earnings per share of $0.42 for the year, up from their prior forecast of $0.25. Raymond James has a “Outperform” rating and a $12.00 price objective on the stock. Raymond James also issued estimates for Hudbay Minerals’ Q4 2021 earnings at $0.28 EPS and FY2022 earnings at $1.30 EPS.

Several other equities analysts have also recently commented on the stock. CSFB raised their price target on shares of Hudbay Minerals from C$11.50 to C$12.50 and gave the company an “outperform” rating in a research report on Wednesday, November 24th. Indl Alliance S restated a “buy” rating on shares of Hudbay Minerals in a report on Thursday, September 23rd. raised their price objective on shares of Hudbay Minerals from C$12.00 to C$13.00 in a report on Tuesday, October 19th. CIBC reduced their price objective on shares of Hudbay Minerals from C$15.00 to C$14.00 in a report on Monday, December 6th. Finally, Scotiabank raised their price objective on shares of Hudbay Minerals from C$11.00 to C$11.50 in a report on Thursday, December 16th. Twelve equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus target price of C$12.79.

Shares of HBM stock opened at C$10.04 on Thursday. The company has a quick ratio of 1.00, a current ratio of 1.38 and a debt-to-equity ratio of 83.94. Hudbay Minerals has a 52 week low of C$6.70 and a 52 week high of C$11.62. The stock has a market capitalization of C$2.63 billion and a PE ratio of -9.14. The firm has a 50 day moving average of C$9.09 and a two-hundred day moving average of C$8.48.

Hudbay Minerals (TSE:HBM) (NYSE:HBM) last issued its quarterly earnings results on Wednesday, November 3rd. The mining company reported C$0.19 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of C$0.04 by C$0.15. The business had revenue of C$451.99 million during the quarter, compared to analysts’ expectations of C$470.43 million.

About Hudbay Minerals

Hudbay Minerals Inc, a diversified mining company, together with its subsidiaries, focuses on the discovery, production, and marketing of base and precious metals in North and South America. It produces copper concentrates containing copper, gold, and silver; molybdenum concentrates; and zinc metals.

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