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Lithium Australia (ASX:LIT) is pleased to provide its Half-Year Report for the period ending 31 December 2022.
(This information should be read in conjunction with the last annual report and any announcements to the market by Lithium Australia Limited during the period)
Comment
For the period ended 31 December 2022, Lithium Australia sales were $2.3 million, primarily related to the recycling division (31 December 2021: $1.0 million). Associated cost of sales were $1.7 million for the same period, down from $2.5 million in the period ended 31 December 2021. These delivered a Gross Profit of $0.6 million for the period ended 31 December 2022 (31 December 2021: $1.5 million Gross Loss). The primary drivers for this improvement relate to increased collection and processing of end of life batteries, the introduction of rebates from the B-Cycle scheme and improvements in operation efficiencies within the recycling division.
The insurance settlement for remediation (refer announcement 7 September 2022) resulted in a release of provision of $1.7 million with a remaining remediation provision of $3.3 million at the period end.
The working capital surplus, being current assets less current liabilities was $15.5 million at 31 December 2022 (30 June 2022: working capital deficit of $1.8 million).
At 31 December 2022, an amount of $1.3 million (30 June 2021: $0.9 million) is included in the statement of financial position, representing amounts billed for sales where performance obligations from those contracts have not been fully satisfied; these amounts will be reflected in the full year’s reported revenue.
The net loss for the period ended 31 December 2022 includes non-cash share-based payment expenses for options issued to directors and brokers, as approved by the Company’s shareholders of $0.9 million (31 December 2021: $0.7 million).
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