Lithium Australia Half Year Report Overview

Lithium Australia Limited (ASX: $LIT) has released its half year report for the period ended 31 December 2023. The company reported sales of $2.6 million, primarily driven by the recycling division, with associated cost of sales at $2.4 million. The battery collection volumes reached 752 tonnes, reflecting an increase from the previous period. However, a decline in global metal prices, such as cobalt and nickel, affected the Mixed Metal Dust (MMD) revenues, impacting the overall revenue achieved per volume. The company also completed the installation of leading safety systems at the Laverton North facility during this period.

Executive Commentary

During the six months to 31 December 2023, our sales primarily from the recycling division amounted to $2.6 million, showing a slight increase from the previous period. The increase in battery collection volumes to 752 tonnes is a positive indicator of our operational growth. However, the decline in global metal prices, particularly cobalt and nickel, had an adverse effect on our Mixed Metal Dust (MMD) revenues, impacting our overall revenue per volume. We also focused on enhancing safety standards by installing leading safety systems at our Laverton North facility, which required the disposal of certain non-core battery volumes to partners for processing. This resulted in increased cost of sales for the period. Despite these challenges, we remain committed to our goal of leading and enabling the global transition to sustainable lithium production.

Summary of Half Year Report and Outlook

Lithium Australia's half year report for the period ended 31 December 2023 reflects sales of $2.6 million, primarily driven by the recycling division. The increase in battery collection volumes to 752 tonnes demonstrates operational progress, although global metal price declines impacted the overall revenue per volume. The company's focus on enhancing safety standards by installing leading safety systems at the Laverton North facility resulted in increased cost of sales. Looking ahead, Lithium Australia remains dedicated to leading and enabling the global transition to sustainable lithium production, leveraging its revenue-generating recycling business and patented technologies to capitalize on the growing global lithium-ion battery demand and provide diversification benefits to global supply chains.