On 31 October, Mineral Resources (MinRes) reported its lithium operations for Q1 FY25, reflecting strategic adaptations to market conditions. Total lithium production reached 157,000 dmt, with shipments totaling 178,000 dmt across its three operational sites, Mt Marion, Bald Hill, and Wodgina. The company cited a significant drop in lithium prices, with the average realized price of spodumene concentrate decreasing by 32% to US$815 per tonne on an SC6 basis.
At the Mt Marion site, the attributable production amount to MinRes was down 24% quarter-on-quarter (qoq) to 68,000 dmt. The product grade averaged 4.1%. To optimize costs, Mt Marion reduced its workforce by approximately 190 roles and decommissioned 110 mobile assets.
Production at Bald Hill saw an 8% increase qoq to 38,000 dmt due to an improvement in feed grade. Shipments totaled 43,000 dmt with a product grade averaging 5.2%, sold at an average price of US$791 per tonne SC6.
Wodgina delivered 51,000 dmt of attributable production to MinRes in Q1, down 19% from the previous quarter. Wodgina’s product fetched US$842 per tonne on an SC6 basis.
The management team is asked about MinRes not providing regular cost updates for lithium operations. The team acknowledges challenging market conditions, with high costs in the lithium segment, while insisting the company is "comfortable", and the cost reduction measures are effective.
