All Ords ASX lithium share Global Lithium Resources Ltd (ASX: GL1) is under heavy selling pressure today.
Shares in the lithium miner closed yesterday trading for 19 cents. In late morning trade on Tuesday, shares are swapping hands for 17 cents apiece, down 10.5%.
For some context, the All Ordinaries Index (ASX: XAO) is up 0.7% at this same time.
This underperformance comes following an update from the ASX lithium share outlining significant corporate and operational changes.
Here's what's going on.
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All Ords ASX lithium share curtails operations
All Ords investors are bidding down the ASX lithium share after management announced operational and corporate pullbacks, citing "the current and likely protracted downturn in the global lithium market".
Indeed, lithium prices have crashed more than 80% since hitting all-time highs in November 2022. And with the global supply growth of the battery critical metal still outpacing slowing demand growth, few analysts expect a rebound anytime soon.
With this medium-term outlook in mind, Global Lithium aims to cut costs on numerous fronts.
The ASX lithium share said it will pause work on several components relating to the Definitive Feasibility Study (DFS) of its 100% owned Manna Lithium Project, located in Western Australia.
The miner also announced a material reduction in monthly expenditure on all corporate overheads and operational spending.
And Global Lithium's board will be cut from four to three at the AGM in November. The board reduction will remain until the lithium market downturn reverses and there is more certainty to price forecasts.
The company said it is taking these cost-cutting measures to ensure it remains in a strong financial position to advance its Manna project when "more favourable market conditions prevail". The miner intends to continue with targeted exploration activities.
Commenting on the changes pressuring the All Ords ASX lithium share today, Global Lithium chairman Ron Mitchell said: "The changes we are implementing at both corporate and operational levels are appropriate, given the macro circumstances facing the company and the lithium industry more broadly."
Mitchell added:
Our focus must remain on protecting and enhancing value for our shareholders, which is why these tough decisions are now unavoidable. Nevertheless, the company is in a robust financial position and is well placed to weather the current market conditions.
The proposed Board changes have been put in place to facilitate the orderly transition at the upcoming AGM and to ensure the company can properly implement required cost reductions in the coming months.
Global Lithium joins a number of other ASX lithium shares that are either curtailing or suspending production as they await a rebound in the price of the battery-critical mineral.
Core Lithium Ltd (ASX: CXO), for example, suspended lithium mining at its Finniss project in the Northern Territory in January this year.
How has the miner been tracking?
It's been a tough year for Global Lithium shareholders, with the ASX lithium share now down 85% in 12 months.
