Lithium Australia NL (ASX: LIT) is a mineral exploration company primarily engaged in the extraction and recovery of lithium deposits. It is based out of West Perth and holds a portfolio of projects and alliances across Northern Territory, Western Australia, Queensland, South Australia Mexico as well as Germany.
On March 21st, 2019, Lithium Australia announced that it has commenced the preliminary feasibility study at the Sadisdorf lithium/tin deposit located in Germany. The PFS will examine the production of cathode powders, specifically lithium iron phosphate (LFP), directly from mica feed, which is usually rendered as a waste material in the process.
The LFP batteries are considered more advanced than other battery chemistries and mostly suited for use in the energy storage systems (ESS) that act as a backup for renewable energy. Of late, the company initiated the Australian Battery Consortium that will help in effectively pursuing opportunities in Australia’s energy industry.
Lithium Australia aims to build on its strategic positioning in the ESS supply chain and establish a vertically integrated sustainable lithium processing business on account of its package of proprietary technologies to make supply chain security a reality.
Earlier in March 2019, Lithium Australia reported successful refinement of lithium phosphate generated at its SiLeach® Gen-2 Pilot Plant to create a pure product, via Lithium Australia's 100%-owned VSPC cathode powder technology, which is suitable for direct generation of LFP powders for the production of lithium-ion batteries.
The company released its financial results for the half-year ended December 31st, 2018, posting the operating loss after income tax of the Consolidated entity at ~ $ 5.397 million, as compared to the loss of $ 1.87 million incurred in the prior corresponding period ended December 31st, 2017. As for the financial position, the working capital surplus, that is current assets less current liabilities amounted to $ 6.79 million, down on $ 13.697 million recorded as at June 30th, 2018.
At the end of the concerned period, the net cash and cash equivalents stood at $ 10.92 million, down on $ 15.66 million as at December 31st, 2017. The cash outflows from operating activities amounted to $ 4.09 million resulting from payments to suppliers, employees, for exploration and evaluation. Moreover, the investing activities further led to net cash outflows of $ 3.44 million on account of purchase of property, equipment, payments for intangible assets, financial assets and exploration assets. There were no financing activities undertaken during the period.
On February 27th, Lithium Australia informed that the first parcel of 7,108,510 fully paid ordinary shares held under voluntary escrow trading restrictions concerning the acquisition of the Sadisdorf Project was due for release on March 12th, 2019. The second tranche is expected to be released on September 12th, 2019 and the final tranche on March 12th, 2020.
The company has a current market cap of AUD 37.7 million. Today, March 22, 2019, the LIT stock is trading at AUD 0.082, up 1.23% (As at 1:28 PM AEST).
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