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Perth-based Core Lithium has posted a huge loss as the chief executive and a board member jump ship.
The $167.6 million loss and resignations come as the company’s share price has crumbled in the past year from $1.20 to $0.22 at the close Tuesday.
Core Lithium has a lithium mine near Darwin, and projects in development in the Territory and South Australia.
However, mining near Darwin was halted in January, as the price of lithium ore spodumene had fallen 75 per cent.
The company points to that dip as the cause for the $167.6m half-yearly loss, though ore stockpiles are still being processed.
Departing chief executive Gareth Manderson told the ASX suspending mining operations “put the business in the best position possible to weather the current market conditions”.
He came from Rio Tinto to begin as chief executive in August 2022.
The business is in the midst of a restructure because of the “dramatic decrease” in the spodumene price, is looking to preserve cash and the value of the operational mine, and development of a nearby project has been suspended as well.
Chairman Greg English said Mr Manderson “joined Core at a difficult time” when the mine near Darwin was underperforming and infrastructure was not complete.
“He has built a capable corporate and site team with a problem solving and continuous improvement mindset,” the chairman said.
The chief executive is not the only one leaving.
Non-executive director Andrea Hall also resigned, effective Tuesday, “to enable a board that is fit for purpose for the future of Core”, the company told the ASX.
The chairman lauded Ms Hall’s capital management, risk management and governance acuity.
Core Lithium owns and operates the Finniss Lithium Operation, about 25 kilometres as the crow flies southwest of Darwin on the Cox Peninsula.
Core’s share price fell six per cent in the first hour of trading Wednesday.
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