Core Lithium shares plunge as company reviews operations
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More news: Shares in Core Lithium were down nearly 20% to 26.5 cents each in the first hour of ASX trading on Friday after the lithium miner announced it would suspend early works on the proposed B33 underground mine in the Northern Territory, and undertake a sweeping review of operations with the aim of slashing costs amid a slide in lithium prices globally. Core said its options could include prioritising ore mining and possible temporary curtailment of mining operations.
Core Lithium reviews operations amid price slide
The news: Miner Core Lithium is undertaking a strategic review that could result in changes to its mining plan and strategy as it looks to cut costs in a deteriorating market.
The numbers: The company said the price of spodumene concentrate has declined more than 40% since October-end and over 80% year to date. It reported shipments of 10,350 tonnes of concentrate in October, and another 10,188 tonnes in November. Core shares are down 67% to 33 cents so far this year.
The context: Options being considered include prioritising ore mining and possible temporary curtailment of mining operations, although the company said the amount of potential cost savings is not known at this stage. It has also suspended early works on its proposed B33 underground mine in the Northern Territory. The development comes just months after Core Lithium posted its maiden full-year profit after starting production at its Finnis project near Darwin. Its share price has been hampered by the slide in global lithium prices as well as a discounted capital raising earlier this year to fund ongoing exploration and mine development.
The source: ASX announcement
