Core Lithium welcomed a 39 per cent increase in spodumene concentrate production for the final quarter of 2023 as it prepares its BP33 and Grants projects in the Northern Territory for shutdown.
The miner shipped a total 30,718 tonnes of spodumene concentrate for the December quarter, with a 20 per cent increase in lithia recoveries, averaging a 60 per cent recovery rate.
BP33’s mineral resource was also upgraded to 35 per cent above the project’s original estimate. Overall, Core closed out the year with a cash balance standing at $124.8 million.
Core announced earlier this month it will be suspending early works at BP33 and the Grants open pit, part of its Finniss lithium operation, citing a downturn in lithium market conditions.
“There is no doubt we have seen strong operational improvement at Finniss as it has ramped up throughout the year,” Core chief executive officer Gareth Manderson said.
“With the rapid shifts in lithium market pricing, Core moved quickly to undertake a strategic review, resulting in the temporary suspension of mining and BP33 early works to conserve cash, and preserve the value of the underlying business.
Core is currently undertaking a discretionary spending reduction program and will consider proposed cuts to studies, exploration and corporate costs.
The company said studies at BP33 and the neighbouring Carlton mine will continue, and the processing of existing ore stockpiles at the sites will continue until mid-2024.
“The work undertaken ahead of the wet season has successfully established ore stockpiles that will see us produce concentrate for the next five to six months at a lower overall cash cost, due to the suspension of mining,” Manderson said.
“This approach will preserve Finniss’ long-term value and ensure we are prepared to move quickly to restart mining in a more favourable pricing environment.”
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