Core Lithium to cut jobs as lithium prices dive

The news: Lithium mining company Core Lithium plans to cut jobs during the March quarter, including changes slated for its senior leadership team, in response to a sharp drop in lithium prices.

The numbers: In its quarterly activities report, Core Lithium posted a 39% increase in quarterly spodumene concentrate production for the December quarter, with output expected to be broadly in line with the company's original guidance. However, concentrate sales have been revised lower from 90,000-100,000 tones to 80,000-90,000 tonnes, with cash operating unit costs expected to be lower at $800-900 per tonne in the second half.

The context: Core Lithium's CEO Gareth Manderson highlighted the performance of its Finniss Mine in the Northern Territory, with strong production in the quarter despite above average rainfall in November. However, the recent shifts in lithium market pricing have forced the firm to temporarily suspend mining to conserve cash, with a view to restarting operations "in a more favourable pricing environment". Manderson noted that current ore stockpiles will allow the company to maintain concentrate production until the end of the fiscal year.