Lithium Australia has cash reserves of $3.7 million at June 30 as it focuses on near-term cashflow projects
Lithium Australia NL (ASX:LIT) had cash reserves of $3.7 million at the end of the June quarter, an increase from $3.3 million on the previous quarter, a position that was strengthened by a reduction in cash spent.
The company responded swiftly to issues surrounding the COVID-19 pandemic, executing a groupwide strategy driven by four key corporate objectives - employee and stakeholder safety, preservation of capital, transition to a distributed workforce, and resource reallocation to better service near-term cashflow projects.
Consequently, Lithium Australia and its subsidiaries reduced the amount of net cash spent on operating and investing activities to $469,000, in comparison to $2.701 million spent during the March quarter.*Recycling*
The company's Melbourne-based recycling division, subsidiary Envirostream Australia Pty Ltd achieved design processing throughput at a time of strengthened commodity prices and is commissioning copper and aluminium recovery circuits as copper and aluminium prices improve.
Processing trials for lithium-ion batteries are also ongoing, with a number of electric vehicle and energy storage system producers involved.
In addition, Envirostream is growing its battery collection initiatives to strengthen revenue and is investigating the use of products from spent alkaline batteries as a micronutrient additive for fertilisers.
Field trials have commenced in Western Australia and Envirostream is in discussions with leading fertiliser manufacturers regarding supply of its micronutrient blend.
Finally, Envirostream has received numerous enquiries with respect to establishing more facilities in international jurisdictions.