Weak lithium market forces Galaxy to cut production 60%
Australia-based lithium producer Galaxy Resources (ASX:GXY) is slashing output at its Mt Cattlin operation to conserve mineral resources until market conditions improve, said the miner in a news release today.
The company said it is responding to market conditions.
"The strategic drivers are to prioritise value over volume, generate positive free cash-flow, preserve resource life and to maintain balance sheet capacity," said the company in a news release. "The expected outcome for 2020 is that mine operations will be scaled back by approximately 60%."
The company said tageted lithium product for Q1 2020 is set at 14,000 to 20,000 dry metric tonnes (dmt). The company's Mt Cattlin operations produced 43,222 dmt of lithium concentrate in the last quarter.
The company said it will maintain flexibility to produce more if conditions improve. The company noted that lithium carbonte prices dropped 16% and lithium hydroxide declined 19% in Q4.