Embattled battery metals miner Core Lithium (ASX:CXO) is restructuring its business in response to the dramatic decrease in the spodumene price and a yesterday’s (12 March 2024) poor half-yearly results.
There were 2 recordable injuries during the half-year for Core Lithium, which required medical treatment in a tough period for the company which recorded a net loss after tax of $167.6 million reflecting a 75% fall in the spodumene price over the period.
Core also reported a non-cash impairment of $119.6 million and provisions for onerous contracts of $27.6 million. Cash as of 31 December 2023 was $124.8 million.
Following a strategic review, a decision was made to suspend mining at Grants and continue to process stockpiles until mid CY2024. Ore stockpiles as of 31 December 2023 were 289,000 tonnes.
As previously reported, mining operations at Finniss have been suspended, but Core Lithium continues to process ore stockpiles to produce spodumene concentrate for sale to customers.
Following operational changes which were put in place as a result of the strategic review and the revised near-term path forward, Core Lithium reports that Gareth Manderson will step down as Chief Executive Officer.
Core’s current CFO Doug Warden will assume the role as interim CEO as an executive search is now underway for a new CEO. Derwent Search has been retained to advise Core on succession.
Meanwhile, James Virgo has been appointed interim CFO. All changes will take effect from 18 March 2024.
Write to Adam Orlando at Mining.com.au
Images: Core Lithium
