ASX-listed Lithium Australia has enjoyed a record-setting December quarter with the company increasing revenue from customers by more than $200,000 in addition to a significant reduction in operating costs.
According to the company’s December quarterly report, receipts from customers reached $1.261 million over the three months prior 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 appears to be a record for Lithium Australia.
The company also saw a significant reduction in operating costs over the three-month period with staff costs down by almost $400,000 and administration and corporate expenditure reduced by more than $150,000.
Lithium Australia also closed out 2022 with a new classification on the ASX from a “mining exploration entity” to a standard materials listing that shows the company’s evolution to a recycling technologies and lithium processing entity.
Highlights over the December quarter include the completion of an engineering study for a pre-qualification pilot plant that aims to support a proposal to expand its current pilot facility to a size capable of providing sufficient samples for prospective customers to trial. The company expects it will help determine the optimal commercialisation pathway in addition to allowing engagement with offtake and joint development partners.
The study was conducted 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 gained full control of the Greenbushes South lithium project in WA after sealing a $3 million purchase agreement with Lithium Australia for the remaining 20 per cent of the operation. The transaction includes $2m in cash, $1m worth of Galan shares and the provision of a first right of refusal to Lithium Australia for an offtake of up to 20 per cent of Galan’s share of lithium ferro phosphate from the project.
The company’s Envirostream battery recycling feed sources continue to thrive through partnerships with LG, Battery World, Bunnings and many others. Only 10 per cent of batteries are currently recycled in Australia giving ample room for additional feedstock to boost the economics of the Envirostream business. Throughout the December quarter the wholly owned Lithium Australia subsidiary engaged a number of electric vehicle companies to secure contracts for the future supply of batteries.
With constant improvements to its operating model in addition to a focus on the global shift towards battery technology, Lithium Australia appears well situated to be a major player in the green technology revolution.
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