Lithium Australia delivers record quarter to close 2022
ASX-listed Lithium Australia enjoyed a record-setting December quarter with the company increasing customer revenue by more than $200,000, in addition to a significant reduction in operating costs.
According to the company’s December quarter report, receipts from customers totaled $1.261 million over the three months to the end of last year compared to $1.014 million in the September quarter of 2022.
The latest figures are more than double the $488,000 made in receipts from customers in the corresponding December quarter of 2021 and appear to be a record for Lithium Australia.
The company also saw a significant reduction in operating costs over the three-month period with personnel costs falling by almost $400,000 and administration and corporate expenses reduced by more than $150,000.
Lithium Australia also ended 2022 with a reclassification on the ASX from a “mining exploration entity” to a standard materials listing that shows the company’s evolution into a recovery technology and lithium processing entity.
Highlights over the December quarter include the completion of an engineering study for a pre-qualification pilot plant aimed at supporting a proposal to expand its current pilot facility to a size that can provide sufficient samples for prospective customers to to try. The company expects this to help determine the optimal commercialization path, in addition to allowing engagement with offtake and joint development partners.
The study was carried out by Lithium Australia’s wholly-owned subsidiary VSPC which is based in Queensland. VSPC has patented technology that challenges conventional rechargeable lithium-ion batteries that use lithium cobalt oxide. VSPC argues current lithium batteries are toxic and unstable at high temperatures.
In December, Galan Lithium announced it had acquired full control of the Greenbushes South lithium project in WA after signing a $3 million purchase agreement with Lithium Australia for the remaining 20 per cent of the operation. The deal includes $2 million in cash, $1 million worth of Galan shares and the provision of a first right of refusal to Lithium Australia to offload up to 20 per cent of Galan’s share of lithium ferrophosphate from the project.
The company’s Envirostream battery recycling feedstock continues to thrive through partnerships with LG, Battery World, Bunnings and many others. Only 10 percent of batteries are currently recycled in Australia, leaving ample scope for additional raw materials to boost the economics of the Envirostream business. During the December quarter, the wholly-owned subsidiary Lithium Australia engaged a number of electric vehicle companies to secure contracts for the future supply of batteries.
With continuous improvements to its operating model in addition to a focus on the global shift to battery technology, Lithium Australia appears to be well positioned as a major player in the green technology revolution.
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