Tabba Tabba will keep purring despite major lithium price clawback, says Wildcat Resources chief
Australia’s lithium industry is on shaky ground but the leaders of Wildcat Resources have an evangelical belief their project can weather any market storm.
Wildcat Resources chief Ajanth Saverimutto is hoping the company’s Tabba Tabba development in the Pilbara can follow the footsteps of Australia’s three most illustrious lithium mines — all once held by the now-defunct Sons of Gwalia during the early 2000s.
When Sons of Gwalia went under, the WA lithium assets were plucked from a fire sale by Global Advanced Metals, a company controlled by West Perth’s Resources Capital Funds.“Basically, they (Global Advanced Metals) held four projects — Greenbushes, Pilgangoora, Wodgina and Tabba Tabba — and the other three are the biggest hard rock (lithium) mines in the world,” Mr Saverimutto told The West Australian.
“Our guys looked at Tabba Tabba and compared it with the others and figured there’s high grade pegmatite outcrops, there’s high grade tantalum, the mineral ratios were favourable.“Technical director Sam (Ekins) and geology manger Torrin (Rowe) convinced our board that there’s a potential for lithium there and that’s why we did the deal.”
The Karara magnetite mine in the Mid West.MiningWA magnetite miner posts eye-watering $411m lossAdrian RausoAlbemarle’s Kemerton plant.MiningAlbemarle to slash 300 jobs as it shrinks South West plantAdrian RausoWildcat bought Tabba Tabba — 80km from Port Hedland — in May last year for scrip at the time worth less than $10 million, plus a bundle of performance rights.
The hunch was proven correct and a series of high-grade lithium hits catapulted Wildcat’s share price from about 3¢ in early May to more than 90¢ in November.Wildcat’s rapid share price ascent delivered an on-paper windfall well into the millions for company’s directors, and at the company’s annual general meeting in November shares were granted to chair Jeff Elliott and executive director Matthew Banks at the time worth a respective $10.5m and $6.5m.But since then lithium sentiment has deteriorated, driven by the spodumene concentrate spot price sinking from about $US3200 a tonne to $US930/t over the past year.
Greenbushes, Pilgangoora and Wodgina have still managed to produce cash despite the downturn.Wildcat Resources Tabba Tabba lithium mine in Port Headland.Wildcat Resources Tabba Tabba lithium mine in Port Headland. Credit: Andrew Ritchie/The West AustralianWildcat’s share price has not been immune from the price rout. Its stock has since tumbled to 24¢, but bar former director Alex Hewett cashing out the board has not been tempted to offload any of their shares.“None of our (current) directors have sold, it’s a testament to the project we have,” Mr Saverimutto said.He said Tabba Tabba is shaping up to be a low-cost open pit mine that will rival Pilbara Minerals’ nearby Pilgangoora as one of the world’s lowest-cost hard rock lithium operations.
“We certainly see that it’ll be close between us and Pilgangoora (on costs), so I think we’ll be able to survive any lithium price environment with a project like that.“I would say Tabba Tabba is one of the best undeveloped projects, of any commodity, globally.”Mr Saverimutto believes Wildcat has only scratched the surface of Tabba Tabba’s scale, and with $77.2m of cash in the till to start the 2025 financial year the drill bit will keep spinning over the next 12 months.Releasing a geological resource and obtaining environmental approvals are the company’s next immediate steps, he said.
How did HOTT operatives provide the only clues as Monadelphous and the ASX left traders guessing about Albemarle’s job cuts at Kemerton?Herd on the TerraceASX punters left guessing on Albemarle’s Kemerton cutsDale Henderson and Minister for Energy Reece Whitby at Pilgangoora. updatedMiningWhitby backs potential for miner tax credits to come soonerSimone GroganChris Ellison’s Mineral Resources will also play a big role in shaping Wildcat’s future after snaring a 19.8 per cent stake in October to become the explorer’s key shareholder.
Mr Ellison has revealed his desire to grab the mining services contract for the bevy of lithium aspirants his company has invested in.But Mr Saverimutto said nothing is in the works with MinRes yet.“It’s too early in the piece . . . we’re just actually trying to understand the resource we have. But (Chris) is a very supportive shareholder, we like having him on our register.”
WC8 Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
(20min delay)