Mt Cattlin produces record level of spodumene concentrate in September quarter

The Mt Cattlin lithium mine near Ravensthorpe has achieved record production of spodemene concentrate as well as revenue in the September quarter.

Allkem told the ASX on Thursday the operation had produced 72,549 dry metric tonnes at a grade of 5.3 per cent lithium oxide, which was a 25 per cent increase on the June quarter, and kept the mine on target with the 2023-24 production forecast of 210,000-230,000 tonnes.

The company said 76,631dmt was shipped during the quarter at an average grade of 5.3 per cent lithium oxide.

These sales generated record revenue of $US201 million ($320m) at an average price of $US3000/dmt ($4771/dmt).

An additional $US2.7m ($4.3m) of revenue was generated from a delayed shipment of low-grade spodumene concentrate.

Commenting on the global lithium market, Allkem said demand during the quarter was softer than expected, with procurement activity being conservative as customers maintained a wait-and-see approach, putting renewed downward pressure on lithium prices.

But it said electric vehicle fundamentals remained strong.

“EV sales have continued to grow year-on-year, with August showing the highest EV penetration to date in China and US at 36 per cent and 10 per cent, respectively, and September reaching a new record in China for EV unit sales,” the company said.

“Global EV sales remain on track to reach 14 million this year, with China set to account for over 8 million units.

“Medium to longer-term demand drivers remain resilient despite short-term sentiment and volatility.”

Allkem said group revenue for the quarter was about $US327m ($521m) and group net cash at September was $US671.7m ($1.07 billion), up $US23.3m ($37.1m) from June 30.