MinRes Cuts Lithium Output as Prices Slide in FY2024-25

Mineral Resources

MinRes cuts lithium output after a tough year for spodumene prices and grades. The producer reported 571,000t of concentrate, down 9.5pc. MinRes cuts lithium output mainly because Bald Hill closed and Mount Marion prioritised higher grade. MinRes cuts lithium output even as Wodgina lifted tonnage.

Operations pivot to grade and cash flow

MinRes produced 257,000t at Mount Marion, down 22pc year on year. However, it lifted average shipped grade to 4.4pc from 4.1pc. Meanwhile, Wodgina raised output to 251,000t from 212,000t. Its shipped grade eased to 5.5pc from 5.6pc. As a result, Bald Hill moved to care and maintenance in November 2024.

Prices undercut revenue despite grade gains

Average revenue fell 36pc to $637/t from $988/t. Therefore, stronger grades could not offset weak spodumene prices. Pilbara Minerals also reported lower realised prices, down 43pc cif China. These moves mirror a broader lithium market slowdown.

MinRes produced 63,000t at Bald Hill in the first half. That was down from 91,000t a year earlier. The company cited the extended downturn as the closure driver. Western Australia remains the core hub for Mount Marion and Wodgina.

The Metalnomist Commentary

MinRes prioritised grade, flexibility and unit costs to ride out the trough. Watch recovery rates and contract mix as demand stabilises. A disciplined ramp at Wodgina could position margins for a faster rebound when prices turn.