Recently, Core Exploration Limited (ASX: CXO) disclosed that the company has found high-grade lithium just 88 kilometers by road from the Port of Darwin. And it is expected that the company will start the mining process in 2019. Following this news, the share price of the company increased by 6.67 percent as on 17 October 2018.
The Managing Director of Core Exploration, Mr. Stephen Biggins said that the closeness of project to Darwin means that the project is close to power, gas, sealed roads and a local workforce. As the project is close to Darwin the mine will be able employ between 100 and 150 Jobs. The company is expecting that the large proportion of the workforce will be based in Darwin and Berry springs. The company is planning to export 225,000 tonnes of concentrate out of Darwin each year. The company has also contacted China's largest lithium producers for finalizing supply deals for the project.
According to Mr. Stephen Biggins, Lithium is having a great demand now a days, as it a key component in making batteries for electric vehicles. And electric vehicles are in demand in countries like China, Europe, United States etc. Lithium Demand in Australia is also exponentially increasing due to which there are number of mining operations that have started in Western Australia. Core Exploration Limited wants to avail this opportunity as soon as possible and they are looking to be the first producer in the Northern Territory. It is estimated that it will cost around $50 million for the company to build the project and get into production.
Recently, Core Exploration Ltd. also announced that the Mineral Resource for its 100 percent owned Napperby Uranium Deposit in the Northern Territory has been re-estimated to follow the JORC 2012 Code guidelines.
In FY 2018, Loss from continuing operations attributable to owners of the company was $2.09 million while the group reported a loss of $1.93 million last year. The key contributor to the increased loss for the year was an increase in administrative costs of $324,913 and employee benefits of $253,880 due to an increase in corporate activity and resultant labour costs supporting an increased exploration and development program. The Basic and Diluted loss per share is 0.43 cents in FY 2018. The net cash outflow from operating activities is $1.28 million in FY 2018. On 26 September 2018, the company announced the appointment of Mr. Erik Palmbachs as Chief Financial Officer as the company establishes the capabilities to move into development and production over the next 12-months.
In the last six months, the share price of the company decreased by 19.64 percent as on 16 October 2018. CXO’s share traded at $0.048 with a market capitalization of circa $28.52 million as on 17 October 2018 (AEST 12:30 PM).
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