26 March 1998: Reduced sales and a slump in profits in the six months to 31 December 1997 have been reported by the Australian mining operation Gwalia Consolidated Ltd. as it prepares for the merger i…
26 March 1998: Reduced sales and a slump in profits in the six months to 31 December 1997 have been reported by the Australian mining operation Gwalia Consolidated Ltd. as it prepares for the merger into parent company Sons of Gwalia. The merger will create one of Australia“s biggest minerals operations. Shareholders“ meetings for the proposed merger are scheduled to be held towards the end of April. First-half profit at Gwalia Consolidated totalled A$ 484,000 (A$ 1.37 million less the revaluation of lithium inventory), down from A$ 7.54 million previously. The lower interim result came as Gwalia cut A$ 884,000 from inventory values and recorded sales of its industrial minerals products which were A$ 5.3 million lower than a year earlier (A$ 37.04 million as opposed to A$ 42.39 million). The company“s managing director, Mr. Peter Lalor, blamed the downturn in sales on the weak lithium market and said that the company expected an improvement in full-year figures, with record mine production forecast for both the Greenbushes and Wodgina operations in Western Australia. The Kemerton silica sand mine, a joint venture with Itochu Corporation and Tochu Co. Ltd. of Japan, in which Gwalia holds a 70% stake, performed well, with a 196% increase (to 194,703 tonnes) in sales to the Japanese glass market. Mr. Lalor said the lithium and spodumene processing plant at Greenbushes would be reduced to 65% capacity in the second half while the lithium carbonate plant remained on care and maintenance, and added that the tantalum sector represented the company“s most promising business.