Altura Mining Limited (ASX: AJM)

AJM presented its annual review of operations for the FY18 in October 2018 with its quarter results, key milestones and future growth forecast. AJM has announced regarding its transition from developer to miner after its first batch of lithium concentrate production from the Altura Lithium project in July 2018 was reported. The group has slated the nameplate production to be achieved at end of CY18 as AJM targets the stage 1 processing facility being at the rate of 220ktpa. The milestone of first shipment departing Port Hedland storage facility to offtake partner Lionergy is a significant step. However, debt related risks hover around the group. Meanwhile, the company further updated that mine site construction activities have been completed and additional US$15m in funding has been secured.
Key Activities during the September quarter:
Construction work on the process plant was completed. Crushing circuit, apron feeder, high pressure grinding rolls and dense media separation feed and primary DMS sections were successfully commissioned. Successful completion of the structural, mechanical and platework installation was reported. Commencement of sample testing at the fully commissioned onsite metallurgy laboratory with the day and night shifts and production ramp up along with the finalization of the commissioning of the fines plant was in process.

Financial Performance (Source: Company Reports and Thomson Reuters)
Financial summary:
The operating loss of the group for the year ended June 30, 2018 was reported at $12,816,965 as compared to the loss of $6,165,006 in FY17. The operating loss calculation was made after making provision for income tax and non-controlling interest for the year. EBITDA reported  a drop up to $13,279,929 for FY18 as compared to $6,417,320 in FY17. 4.6% rise in revenues and sundry income up to $1,675,168 in FY18 as compared to $1,600,959 in FY17 was noted. The rise in the operating loss was mainly contributed by the administrative and corporate expenses and net foreign exchange loss. Costs related to exploration, commissioning and development of the Pilgangoora Lithium project was capitalized during both the 2018 and 2017 financial years.
Consolidated group net assets posted an increment in 2018, with non-current assets contributing significantly more due to the construction phase of the Lithium project.
No dividends were declared during the year ended on June 30, 2018. Sourcing of the funds were made by US$110 million and a $26 million placement.
Technically,the price charts are now indicating some rejection on the downside and in near term some bounce can be expected from the current levels. The boost is also expected from the revival in lithium price sentiments.
The market cap of AJM was recorded at $354.97m, and negative EPS of 0.007 as on November 02, 2018. At current juncture, scrip is trading at the price levels of $ 0.200 (up 2.6% on November 02, 2018) and looks a “Hold” as the group is required to demonstrate significant growth drivers for future opportunities.
 
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