Australian company Pilbara Minerals (OTCPK:PILBF) reported an 86 percent drop in its stock on Monday. annual underlying profit after tax to A$318 million (~US$216 million), citing lower average realised sales prices for lithium.

The miner announced that it intends to reduce capital expenditure in the current financial year. to A$615-685 million from A$865 million in the 12 months to June 2024, although the Pilgangoora mine and concentrate processing plant are on budget and scheduled for completion in fiscal 2025.

Two additional development projects will be implemented suspended until commodity prices are rebuiltCEO Dale Henderson said in an interview with Bloomberg.

Projects include the Salinas lithium mine in Brazil and a planned further expansion of the Pilgangoora mine, which would make it the largest lithium mine in the world; Salinas was recently acquired as part of Pilbara’s (OTCPK:PILBF) purchase of Latin Resources for A$560 million.

The planned expansion of Pilgangoor could add 115,000 tonnes of lithium carbonate per year to the market, an boost of about 5% over current global supply, which could “deepen existing oversupply problems,” Jefferies analyst Mitch Ryan said.