Leo Lithium Board Reshapes as Company Shifts Focus Post-Goulamina Sale

Completion of Goulamina Sale

Leo Lithium Limited marked a significant milestone in the December 2024 quarter by finalising the sale of its remaining 40% interest in the Goulamina lithium project to Chinese lithium giant Ganfeng. The transaction, completed on 26 November 2024, brought in a net first tranche payment of US$116.3 million after Mali capital gains tax deductions. This sale effectively transfers operational control and ownership of the project to Ganfeng, with the second tranche of US$171.2 million expected by mid-2025.

Shareholder Returns and Financial Position

Following the sale, Leo Lithium announced a substantial distribution to shareholders totaling 17.2 cents per share, comprising a 1.43 cent capital return and a 15.77 cent unfranked special dividend. This payment, scheduled for 31 January 2025, reflects the company’s commitment to returning value directly to investors. Despite this payout, the company maintains a robust cash position, closing the quarter with A$269.3 million in cash and equivalents, largely held in term deposits. Post-distribution, the company anticipates retaining approximately A$60 million, providing a solid financial foundation for future initiatives.

Board Restructure and Leadership Changes

In tandem with the sale, Leo Lithium undertook a strategic board restructure to align with its new phase as a leaner, acquisition-focused entity. Directors Rick Crabb and Rod Baxter voluntarily retired, reducing the board to four members. Simon Hay was appointed Executive Chairman, transitioning to a part-time role to oversee the company’s next steps. This leadership change signals a shift towards a more agile governance structure as the company pivots from asset divestment to growth through acquisitions.

Strategic Outlook and Acquisition Focus

With the Goulamina project behind it, Leo Lithium is actively screening potential acquisition targets that can leverage its lithium development expertise. The company’s 2025 Corporate Update emphasizes a disciplined approach to cost control while seeking assets where it can add significant value. Resuming trading on the ASX is contingent on securing a new asset, which would restore liquidity and provide shareholders with flexibility in managing their holdings. This strategic pivot underscores Leo Lithium’s intent to remain a relevant player in the lithium sector amid evolving market dynamics.

Operational and Financial Discipline

During the quarter, Leo Lithium did not engage in exploration or production activities, reflecting its transition phase. The company successfully managed cash inflows from the sale and related agreements, while controlling outflows despite some increased administrative costs linked to retention payments and executive incentives. The careful stewardship of funds and streamlined operations position Leo Lithium well for its next chapter.