Australia's Global Lithium to revamp operations amid lithium downturn

Global Lithium Resources

10/09/2024 02:12

Sept 10 (Reuters) - Australia's Global Lithium Resources
 GL1.AX  fell more than 13% to hit a record low on Tuesday as it
said it will implement corporate and operational changes due to
a likely protracted downturn in the global lithium market. 
    Shares of the company fell as much as 13.2% to their record
low of A$0.165.
    The company, in which Mineral Resources  MIN.AX  is a major
shareholder, said it would immediately pause works relating to
its feasibility study at its Manna Lithium Project in the
Kalgoorlie Lithium Province, and materially reduce its monthly
expenditure on all corporate overheads and operational spending
to maintain financial stability. 
    Lithium prices have taken a hit recently due to the
oversupply of the metal, which is used in electric vehicles.
    The lithium miner added that it would reduce its board size
from four to three members until there is greater certainty in
lithium market forecasts.
    Shares of Mineral Resources  MIN.AX  are down 0.7% at
A$30.22 as at 0107 GMT. They rose as much as 2.6% to A$31.19
earlier.

 (Reporting by Sherin Sunny in Bengaluru; editing by Alan
Barona)
 ((Sherin.Sunny@thomsonreuters.com))