Delta Lithium to fight battery downturn with gold hedge as Chris Ellison turns focus to MinRes

Mineral Resources-backed explorer Delta Lithium will press on combating a dire lithium slump without Chris Ellison, who did not make an appearance at the junior’s annual meeting on Wednesday. Mr Ellison handed in his notice from Delta at the start of the week telling investors his focus and attention needed to be on Mineral Resources, which is currently engulfed in scandal stemming from his personal tax affairs and use of company resources. A MinRes board probe into his conduct is continuing, and the Australian Securities and Investments Commission is also looking into the matters. Despite the swift departure from Delta just two days before the AGM, Mr Ellison assured the explorer had “some exciting prospects” and that MinRes remained a supportive shareholder. MinRes lithium boss Josh Thurlow — who attended the tight-knit meeting, where there were no questions from shareholders — will stay on as a non-executive director with Delta. Mr Ellison’s successor and new Delta chair Nader El Sayed thanked the Kiwi rich-lister for his “wisdom and experience” and the MinRes team for their “ongoing support”. Mr Ellison had muscled in on the then-David Flanagan-led Delta board as part of a big push into lithium in 2023, when the race was on in WA to stake claims in promising projects. Prices since then however have not held up as hoped, and Delta has been pouring more exploration dollars into firming up gold credentials at its Mt Ida project in the Goldfields. The company maintains however that lithium its still its primary focus and it remains a “firm believer in the long term battery thematic”. The explorer called in Bell Potter in September to lead a strategic review of how to make the most out of the 752,000-ounce gold resource as prices for the yellow metal continue to break records. Delta managing director James Croser said harnessing gold at Mt Ida would be a “good hedge” against languishing lithium prices. MinRes holds 23 per cent of Delta, and Gina Rinehart’s Hancock Prospecting is a junior partner with 10.6 per cent slice. Shares in the company were off more than 5 per cent to 18¢ by market close.