A strategic review of Core Lithium’s operations will address the deterioration in lithium market conditions, with the price of spodumene concentrate falling by 40 per cent since the end of October 2023.

The company has only been producing lithium concentrates for ten months, but will now “investigate a range of options to lower costs and increase productivity”.

Early works at its BP33 underground mine in the Northern Territory – described by the firm as “the potential long life cornerstone asset of the operation” – have been suspended as a result.

Core will also consider changing its mining strategy, potentially by prioritising ore mining and the possible temporary curtailment of mining operations, commercial solutions and reductions in exploration and other discretionary expenditures.

“The review will prioritise business value and future options,” Core Lithium said today in a statement to shareholders.

“Given the difficulties associated with mining and construction in the wet season and the focus on reducing expenditure, BP33 early works have been suspended.”

In October, Core shipped 10,350 tonnes of lithium concentrate and a further 16,246 tonnes in November.

Another shipment is due to be made in December, and Core said future sales of the material will be “subject to market conditions”.

“The team at Core are working at pace on all options to optimise our business and position it as well as possible in the current lithium pricing environment,” CEO Garteh Manderson said.

“While we are experiencing market volatility today, our focus is on the continued safe and efficient operation of the Finniss project while preserving the value of our operating asset, projects and exploration potential.”

For Core, the news comes after the company announced its first-ever full-year profit since listing in 2011 of $10.8 million, alongside maiden revenue of $50.6 million.

Earnings before interest, tax, depreciation and amortisation came in at $14 million after the company produced its first batch of spodumene concentrate – the high-purity lithium ore which is a key input for the production of batteries for smartphones and electric vehicles.

Before that in August, the firm raised $100 million to ramp up its NT operations, building on another $100 million raised in October 2022.

In the year-to-date, Core Lithium shares have declined in value by more than 67 per cent, and are priced at 33 cents per share currently, implying a market value of $695.11 million. This is well off the firm’s peak of $1.67 per share achieved in mid-November 2022.

It comes as Adelaide mining companies are capitalising on the rising price of uranium, with Boss Energy yesterday proclaiming its first sales contract with a listed power utility in the United States and Argonaut Resources announcing a $3.25 million raise to advance its projects.