The Altura Lithium Project is consistently delivering strong production figures with the September quarter output expected to be approximately 45,000 wmt, exceeding the 42,402 wmt achieved in the June quarter.
|The COE Luisa loading in Port Hedland|
With the mine operating at close to nameplate capacity, the Company has continued to dispatch regular shipments of spodumene concentrate. The demand for Altura spodumene remains strong with customers citing the exceptional quality of the Company’s product. A recent marketing trip to China has reinforced consistent positive feedback from clients with regard to the quality and consistency of the product which is making a point of differentiation in the market.
Sales and exports of approximately 19,000 dmt of spodumene have been made so far this quarter. The Company forecasts similar sales and exports during the remainder of the quarter.
The loading of 11,300 wmt on the vessel COE Luisa over 18 and 19 August 2019 marked the first cargo to the Guangdong Weihua Corporation as part of the recently executed binding offtake agreement. The remaining 2019 allocation of 40,000 dmt is scheduled for routine delivery over the next six months.
Altura is continuing to negotiate future offtake arrangements with a range of high-profile potential offtake partners.
James Brown, Altura’s Managing Director said the stable production from operations and quality of concentrate being produced had enabled continued sales and growth to downstream lithium converters and lithium chemical end-users despite some short-term market weakness.
“I’m delighted that Altura has now established itself as a supplier of choice. The recent offtake and investment transactions completed by the Company are a result of building relationships over time and confidence in our concentrate quality. It is also pleasing that our offtake partners are gaining confidence in our ability to deliver a low and sustainable operating cost structure, which is imperative to long term supply stability,” said Mr Brown.
“We are under no illusion that the market has become tighter however we will continue to deliver a consistent, high-quality product to our customers. The long-term fundamentals of our business have not changed as we navigate through the short-term market challenges.
“Importantly the improved operations mean the project has been considerably de-risked, and this has allowed us to advance discussions with various parties about renegotiating our project financing arrangements on more favourable terms for Altura.”