CSR Limited Reports H1 2023 Financial Results, Sayona Mining Unearths High-Grade Lithium in Quebec

CSR Limited (ASX:CSR) has released its financial results for the first half of 2023, showing a net profit after tax (NPAT before significant items) of AU$94 million. While this figure represents a 15% decline compared to the previous year, the results are a mixed bag, with strong growth in Building Products but lower contributions from the Property and Aluminium segments.

Building Products Thrive

CSR's Building Products segment recorded a record EBIT of $165 million, up by 18% from the previous year. This growth can be attributed to pricing discipline, increased volume in Gyprock, Hebel, and Bradford, and improved operational efficiency. The segment's success is further underlined by a 100 basis point improvement in EBIT margin and a return on funds employed increasing to 31% from 28%.

Challenges in Property and Aluminium

In contrast, CSR's Property segment reported an EBIT of -AU$1.5 million, reflecting the absence of significant transactions in the first half. However, there is optimism for the second half, with AU$44 million in earnings already contracted.

The Aluminium segment also faced challenges, with an EBIT of -AU$24 million, primarily due to higher energy and coal pass-through costs, as well as volatile raw material costs. The previous year's earnings included a AU$16 million RERT payment, which contributed to the difference.

CSR's Strategy and Outlook

CSR's strategic focus remains on sustainability and resilience, with an emphasis on adapting to changing market dynamics and demand. The company is closely monitoring these factors to manage the business effectively.

For the second half of the financial year ending in March 2024, CSR expects strong performance in Building Products, continued contracted earnings in Property, but potential challenges in the Aluminium segment due to cost volatility.

CSR remains committed to investing in the business and delivering value to shareholders. With a strong balance sheet and disciplined capital allocation, CSR aims to provide growth and resilience through diversified product offerings that can adapt to market demand, especially in the non-residential sector. The company's outlook remains optimistic, with a focus on improved performance throughout the economic cycle.

Sayona Mining Unearths High-Grade Lithium Intercepts in Quebec

Sayona Mining Limited (ASX: SYA) has announced significant high-grade lithium intercepts from recent drilling at its North American Lithium (NAL) operation in Quebec, Canada. These results are expected to increase the potential for a resource upgrade at NAL, the single largest source of hard rock lithium production in North America.

New Mineralization Discovery

The new mineralization has been found outside the current pit shell, along the north-west margin of the NAL deposit. This discovery suggests the potential for resource expansion and definition below the pit shell.

Continuity and Consistency

Lithium mineralization within the pit shell demonstrates continuity and consistent grade and thickness. These findings indicate the potential for resource conversion and definition, potentially adding to the existing resource base.

Focus on Increasing Resource Base

Sayona Mining is committed to growing its hard rock lithium resource base in Quebec, with additional assay results pending from further drilling at NAL. The company recently shipped spodumene concentrate to the international lithium market, highlighting its progress in advancing NAL's production ramp-up.

Sayona's focus on North American lithium production aligns with the increasing global demand for lithium as a key component in electric vehicle batteries and clean energy storage solutions. The company's positive drilling results suggest a bright future for lithium production at NAL.

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