The Galaxy Resources Ltd (ASX: GXY) share price is up 7% today after the lithium miner reported a positive cash flow of $7.6 million on revenues of $14.1 million for the half-year period ending June 30, 2017.
After a $61 million capital raising conducted in February 2017 the company also has a healthy balance sheet of $40.3 million in cash in hand to invest in expanding its lithium mining operations in Argentina and Australia.
Just prior to Galaxy releasing its results it had more than 11 per cent of its shares sold short by speculators betting that they were likely to fall. The stock is up 15 per cent since it reported on August 28 and part of the price rise is probably related to the short sellers being forced to by back their shares in reaction to the strength of Galaxy's results.
The company produced 14,038 tonnes of lithium in June, which equates to an annual run rate of 168,000 tonnes. Galaxy has a market value around $750 million and its shares may remain volatile over the next 12 months.
