Miners dragged the S&P/ASX200 lower Monday (22 July 2024), dropping 39.90 points or 0.50% to 7,931.70.
Diversified mining company South32 (ASX:S32) and emerging tier one battery minerals producer Liontown Resources (ASX:LTR) were the bottom performing stocks in this index, down 12.57% and 4.48% respectively.
The index has lost 0.35% for the last five days but sits 1.88% below its 52-week high.
Arcadium Lithium (ASX:LTM), Whitehaven Coal (ASX:WHC), and Iluka Resources (ASX:ILU) rounded out the bottom five performing stocks on the S&P/ASX200 on Monday.
Last week, Liontown announced it had concluded negotiations with BSIT and executed a full-form offtake agreement for the supply of spodumene concentrate from its flagship 100% owned Kathleen Valley Lithium Project in Western Australia.
The short-term offtake agreement provides for the supply of up to 100,000 dry metric tonnes (DMT) of spodumene concentrate over the course of 10 months starting by 30 September 2024.
The agreement is in addition to existing long-term offtake contracts with Tesla, LG Energy Solution, and Ford, which will be progressively brought into effect over the next 12 months as Liontown ramps-up the Kathleen Valley to full-production.
Miners drag S&P/ASX200 lower
South32 produces 10 commodities from operations in six countries across three regions.
The company is moving to lodge an appeal over Western Australian Environmental Protection Authority (WA EPA) recommendations relating to the mining of bauxite to extend the life of its Worsley Alumina refinery, as reported by Mining.com.au today.
Worsley Alumina kicked off the environmental approval process with the WA EPA in 2019 for the Worsley Mine Development Project to enable access to bauxite to sustain production.
The project involves the expansion of the existing mining area and inclusion of new mining areas, development of a bauxite transport corridor, development of a contingency mining area and maintenance work at the refinery, and the development of associated infrastructure.
Meanwhile, the company’s latest quarterly released today shows it achieved 98% of current FY24 copper equivalent production guidance and remains on track to deliver FY24 operating unit costs in line with current guidance.
The report shows aluminium production was largely unchanged year-on-year, as Hillside Aluminium achieved record production, Brazil Aluminium continued to ramp up, and Mozal Aluminium progressed its recovery plan.
Meanwhile, Sierra Gorda payable copper equivalent production4 declined by 15% in FY24, as higher plant throughput was offset by lower than planned copper grades and molybdenum recoveries in the current phase of the mine plan.
Cerro Matoso nickel production was largely unchanged year-on-year, with higher plant throughput and nickel grades supporting a 6% increase in quarterly production.
FY25 production guidance has been revised lower for alumina (5%), Sierra Gorda payable copper equivalent (7%), and Cannington payable zinc equivalent (9%).
Write to Adam Orlando at Mining.com.au
Images: Unsplash
