Shares in Core Lithium have crashed by more than 20 per cent this morning after the company announced it was reviewing its operations near Darwin because of “the deterioration in lithium market conditions”.
Key points:
- Core Lithium officially opened its Finniss lithium mine near Darwin in 2022
- It has suspended early works on its proposed second mine BP33
- It is considering halting production because of falling lithium prices
Core Lithium owns the Northern Territory’s only lithium mine, but said the price of spodumene concentrate (high-purity lithium ore) had fallen 80 per cent this year, “including by more than 40 per cent since the end of October”.
Core said the falling lithium price had caused the company to consider a range of options, including “possible temporary curtailment of mining operations” and “reductions in exploration and other discretionary expenditures”.
“The team are working at pace on all options to optimise our business, and position it as well as possible in the current lithium pricing environment,” Core chief executive Gareth Manderson said.
“While we are experiencing market volatility today, our focus is on the continued safe and efficient operation of the Finniss project while preserving the value of our operating asset, projects and exploration potential.”
Works on second mine suspended
Core Lithium’s plans for a second lithium mine near Darwin have ground to a halt, with the company telling the ASX that “early works have been suspended” on the project, called BP33.
The company said it shipped 10,188 tonnes of spodumene concentrate and 16,246 tonnes of lithium fines out of Darwin port last month, and had another spodumene shipment due later this month.
The company said it had a significant stockpile of ore on site and “will continue processing ore and making spodumene concentrate during the wet season”.
The Northern Territory’s new chief minister Eva Lawler said the falling price of lithium had impacted Core Lithium’s viability, but she remained confident about the mine’s future.
“We’ve seen a glut of lithium, but that will absolutely change in the next few years because there is demand for lithium in the world.”
When ABC Rural spoke to CEO Gareth Manderson in August, he said that around 300 people were working on the mine site.
He said the company had been the target of short-sellers this year, but he was focused on “running the best business and build the best business possible”.
In November 2022, shares in Core Lithium reached a peak of $1.67.
At the time of publication, shares in Core were $0.26.
Key stories of the day for Australian primary producers, delivered each weekday afternoon.