Delta Lithium has reassessed its capital allocations amid a downturn in the lithium market, the company announced in its recent quarter report.
Delta Lithium has reassessed its capital allocations amid a downturn in the lithium market, the company announced in its recent quarter report.
The Subiaco-based company today published its December 2023 quarter on the market, ending the period with a cash balance of $116 million.
Delta Lithium managing director James Croser said there were important milestones during the final 2023 quarter, including an upgraded mineral resource estimate (MRE) and approval for open pit mining at its Mt Ida project in the Goldfields.
However, Delta Lithium also announced it was not feasible to start direct shipped ore lithium mining at this stage of the price cycle despite the open pit mining approval.
Mr Croser flagged the company’s renewed focus on Delta’s Yinnetharra lithium project in the Gascoyne.
“The persistent downtrend and current weak lithium market pricing has given us cause to reassess our capital allocations,” he said.
“Delta is committed to prudent capital management and we will look to prioritise Yinnetharra exploration with a view to growing confidence in our larger asset while we consider development options for Mt Ida.
“An upgraded MRE at Mt Ida and the declaration of maiden MRE’s for both Yinnetharra and gold at Mt Ida have all been delivered on schedule.
“I’m incredibly proud of the speed and skill demonstrated by our team to hit these targets, especially the MRE at Yinnetharra which has been achieved in just over 12 months from finalisation of the acquisition.”
Delta said the company maintained the option to start DSO lithium mining as previously announced and would continually assess lithium market conditions.
