Canadian lithium developer Nemaska Lithium (TSX: NMX)
said on Friday its Whabouchi project in Quebec would be put on care and maintenance before the end of the year, as financing discussions with investment firm Pallinghurst continue.
Montreal-based Nemaska said, “in the coming weeks, the Whabouchi site winterization and orderly demobilization will be completed”:
A small crew will conduct care and maintenance activities as well as ensuring site security. Detailed engineering will be pursued, at an adapted pace, to continue the development of project until financing is secured for both the Whabouchi mine and the Shawinigan plant.
“We continue working with Pallinghurst and our other strategic partners on completing an optimized project financing structure to be submitted to the shareholders’ approval as soon as possible,” said Guy Bourassa, president and CEO of Nemaska Lithium.
Nemaska said it also working to fulfill the last orders at the demonstration plant which has been in operation since February 2017 as well as preparing samples of lithium hydroxide to continue product qualification trials with potential end users.
As of August 31, it had incurred capital expenditure of C$392 million on a total project budget of C$1.27 billion.
The company said at the end of the September quarter it had on hand approximately $77 million in unrestricted cash and cash equivalents to finance its current activities, plus cash and cash equivalents of $40 million that it has agreed, for the moment, to maintain in a cost overrun account.
Nemaska’s stock was trading down 8.6% by early afternoon on Friday with double usual volume of shares exchanging hands. At 16c per share, the decline since the start of the year is now 80%.
After peaking at $2.35 per share two years ago with a market value approaching $2 billion, the lithium developer is now worth C$128 million on the Toronto stock exchange.
Lithium hydroxide prices have fallen 21% this year, bringing the Benchmark Mineral Intelligence LiOH index to its lowest point since February 2016.
https://www.mining.com/nemaska-lithium-shares-hit-new-low-says-project-shutdown-within-weeks/Galaxy Resources says it will scale back operations next year at its Mt Cattlin lithium mine in WA in an effort to stay in business until the price of the electric vehicle battery component improves.
Galaxy says the current pricing for lithium products is unsustainable and it expects further supply rationalisation as mines are placed into care and maintenance mode — as Mt Cattlin itself was from 2013 to 2016.
A roughly 60 per cent reduction in mining at the Ravensthorpe mine would reduce operating costs by around $US20 million ($29 million), Galaxy said.
https://thewest.com.au/business/mining/galaxy-resources-cuts-back-mt-cattlin-production-at-ravensthorpe-to-save-30m-ng-b881385057z?Then add this to the mix. A very detailed analysis of the current outlook.
http://m.microbell.com/wap_detail.aspx?id=22d3095ef89f4ea641f425d3ac54bd66Does not look good for lithium producers in the medium turn.
