Newsletter summary
The North American lithium industry reported that ore processing fell by 3 per cent in the first quarter of 2024, but lithium concentrate production increased by 18 per cent. Sales surged 152% to A $58 million. Operating costs rose 10 per cent to A $1536 per tonne. The unit recovery rate reached a new high of 69%.
Text of news flash
Quarterly report on North American lithium industry shows significant growth in production and sales [North American lithium industry]WinwinspingameProduction and sales performance improved significantly in the quarter, bringing a positive signal to the market. ]
In the latest quarterly report, North American lithium industry (NAL) production data showed a positive trend. Despite the adverse conditions in winter and the unexpected shutdown of machinery and equipment, the crushing system processed 260528 tons of ore and the average feed grade was raised to 1.Winwinspingame.24%, down 3% from the previous quarter. However, thanks to the improvement of feed grade, this reduction has been effectively offset.
In terms of factory operation, the average utilization rate in this quarter was 73%, down 2% from the previous quarter, mainly due to unplanned outages caused by weather and equipment failures. However, the introduction of new replenishment systems has raised plant utilization to an average of 78 per cent in February and March.
The recovery rate of lithium increased to 67% in the quarter, up 5% from the previous quarter. This growth is due to improved metallurgical processes and the installation of high-density regulating tanks in the previous quarter. In March, NAL achieved an all-time high of 69 per cent of global process recovery.
In terms of lithium concentrate production, NAL produced 40439 tons of lithium concentrate with an average grade of 5.4%, an increase of 18% compared with the previous quarter. Despite the challenges of winter and unexpected downtime, concentrate production has increased due to the increase in feed grade and recovery.
In terms of sales, NAL's revenue for the quarter was A $58 million, up 152 per cent from the previous quarter. This is due to a 142 per cent increase in concentrate sales and a 6 per cent increase in average real sales prices.
The total amount of concentrate sold in the quarter was 58055 tons, an increase of 142% over the previous quarter. The average realized selling price (FOB) increased by 6% to A $999 / ton (US $657 / ton).
On the cost side, unit operating costs increased by 10% month-on-month to A $1536 (US $1008 / ton). This increase is mainly due to the increase in seasonal mine dewatering activities and tailings transportation costs.
Capital projects, including the construction of Crushed Ore Dome and the Jaw Crusher Cmur150 project, are carried out as planned. In addition, the final Feasibility study (DFS) of the Moblan lithium project confirmed the net present value after tax of the project at C $2.2 billion.
In terms of environmental assessment and licensing, the Moblan and Authier lithium projects are ongoing, and related activities include baseline environmental studies and community consultations aimed at assessing the environmental and social impact of the project.
The cash flow of the Sayona Quay é bec joint venture (SYQ) showed A $30 million from customers, A $70 million in operating expenses and a net cash outflow of A $40 million in the quarter. Equity contributions from joint venture partners amounted to A $61 million, with a net increase of A $3 million in cash and cash equivalents.
At the group level, Sayona had a cash and cash equivalent balance of A $98.9 million, down from the previous quarter. Major cash inflows for the quarter included lithium concentrate sales, joint venture partner income and interest income.
In terms of risk tips, the growth rate of global lithium demand, higher-than-expected supply and geopolitical risks are the focus that investors need to pay attention to.