{"id":1135392,"date":"2019-08-29T06:19:01","date_gmt":"2019-08-29T11:19:01","guid":{"rendered":"https:\/\/www.mining.com\/?p=1000558"},"modified":"2019-08-29T06:19:01","modified_gmt":"2019-08-29T11:19:01","slug":"galaxy-resources-bottom-line-hurt-by-mt-cattlin-lithium-mine-charge","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1135392","title":{"rendered":"Galaxy Resources bottom-line hurt by Mt Cattlin lithium mine charge"},"content":{"rendered":"<p>Lithium miner Galaxy Resources (ASX:GXY)&nbsp;<a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.asx.com.au\/asxpdf\/20190829\/pdf\/4480vs2mggyrg0.pdf\" >posted on Thursday<\/a> a net loss for the first half of the year of almost $172 million mostly due to a non-cash impairment charge at its flagship Mt Cattlin&nbsp;mine in Western Australia, joining a long list of battery metals producers <a href=\"https:\/\/www.mining.com\/lithium-glut-ev-subsidy-cuts-take-toll-on-major-producers\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">hit by slumping prices<\/a>.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The company flagged in early August<br \/>\nthe upcoming write-off following a review of the mine\u2019s inventory of lithium<br \/>\nconcentrate, the costs it attributed to the acquisition of the project from<br \/>\nprevious owner General Mining and tax losses.<\/p>\n<p>An <a href=\"https:\/\/www.mining.com\/lithium-prices-to-remain-low-as-hype-has-met-reality-cru\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">ongoing avalanche of lithium supply<\/a>, coming mostly from Australia, as well as cuts to China\u2019s electric-vehicles (EVs) subsidies have caused prices for lithium carbonate, which is typically used by suppliers to the battery industry, to halved from mid-2016 levels. Lithium concentrate spodumene prices have also slumped from $850-925 per tonne last year to $585-650 at the end of July, according Fastmarkets.<\/p>\n<p>Market weakness weighed on Galaxy\u2019s<br \/>\nresults&nbsp;for the six months ended June 30, posting a net loss for of 171.9<br \/>\nmillion, compared with a profit of $11.5 million a year earlier. <\/p>\n<p>Barring one-off charges, the<br \/>\ncompany reported a net profit of $4.9 million. Revenue, however, fell to $28<br \/>\nmillion from $88.4 million.<\/p>\n<p>The lithium miner recently became the<br \/>\nmajor shareholder in fellow Australian miner Alita Resources, by buying the<br \/>\ncompany\u2019s debt for $31.1 million, including interest, fees and costs.<\/p>\n<p>While many market players continue<br \/>\nto forecast long-run prices in the mid-teens, based on bullish forecasts for<br \/>\nsales of EVs and energy storage systems, most analysts remain unconvinced.<\/p>\n<p>Commodity research group said this month it expected<br \/>\nlithium prices to remain in the <a href=\"https:\/\/www.mining.com\/lithium-prices-to-remain-low-as-hype-has-met-reality-cru\/\">single<br \/>\ndigits for longer than expected<\/a>, as \u201chype\u201d has met \u201creality\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Net loss for the six months ended June 30 was $171.9 million, compared with a profit of $11.5 million a year earlier.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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