05:24 PM EDT, 05/13/2024 (MT Newswires) -- Lithium Royalty ( LITRF ) after trade Monday reported a first quarter net loss of US$1.05 million, compared to a loss of US$1.74 million a year earlier as it battled to overcome lower royalty revenue due to a lower lithium price.

But the company said 2024 is "on track for robust organic growth" as portfolio companies "continue to derisk their respective operations, with several new mine openings, resource expansions, and mine studies expected in 2024".

First quarter revenue fell 11% year-over-year to US$631,000 as portfolio volume growth helped offset an 81% decline in lithium prices.

"The beginning of 2024 presented the industry with the most challenging conditions faced in the last two years, with a year-on-year lithium price decline of 81% through the end of the quarter. However, lithium prices appeared to reach a bottom during the quarter with prices firming up in March. Current market prices for spodumene are trading approximately 25% higher than the lows seen in January and February this year as demand signals continue to firm up led by growth from China.," chief executive Ernie Ortiz said in a statement.

"Going forward, we expect the improving pricing environment, coupled with the expected start-up of additional lithium projects in the LRC portfolio, to provide positive tailwinds to the Company for the balance of the year. The demand outlook for lithium remains strong, with an upward bias to prices given the demand trajectory, rising cost intensity for the industry, and improved inventory positioning for battery materials," Ortiz added.

The company reported 45 Lithium Carbonate Equivalent Tonnes (LCETs) or 597 Spodumene Concentrate Equivalent Tonnes (SCETs) in the quarter compared to 54 LCETs or 576 SCETs last quarter.

Lithium Royalty ( LITRF ) shares closed down C$0.16 to C$7.20 on the Toronto Stock Exchange.