Aug 16 (Reuters) – Australian lithium miner Galaxy Resources said on Monday it swung to a half-year profit, helped by improved pricing for its spodumene concentrate, and expects higher prices in the current quarter as the electric vehicle market booms.
Prices of lithium, a key ingredient used in electric vehicle batteries, have soared over the past year on the back of a global push towards greener modes of transport.
“Galaxy continues to experience strong demand and increased realised prices for its spodumene concentrate,” the company said in a statement.
The company expects contract pricing in the third quarter to exceed $750 per dry metric tonne (dmt) of spodumene concentrate, up from $453 per dmt in the first half.
Galaxy’s after-tax profit from ordinary activities was $64.3 million for the half year ended June, compared with a loss of $22.2 million a year earlier, on the back of improved sales volume at its Mt Cattlin mine.
The results come as Galaxy completes its merger with Orocobre to create the world’s fifth most valuable lithium miner.
Reporting by Savyata Mishra and Arundhati Dutta in Bengaluru; Editing by Krishna Chandra Eluri