Core Lithium (ASX:CXO) shares gain 48% in last six months, here’s why

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Core Lithium (ASX:CXO) shares gain 48% in last six months, here’s why

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 Core Lithium (ASX:CXO) shares gain 48% in last six months, here’s why
Image source: © Gavinp101 | Megapixl.com

Highlights:

  • Core Lithium shares have been on a gaining spree since last one year, thanks to the huge demand and short supply of Lithium.
  • Finniss, Australia’s newest and richest lithium mine is owned by Core Lithium.
  • The mining firm has already signed offtake deals with companies like Gangfeng Lithium, Sichuan Yahua and Tesla so far.

Touted to be Australia’s newest lithium miner, Core Lithium Ltd (ASX:CXO) has been making rounds of news of late due to its financial and mining activities.

On 4 August 2022, the materials giant shared an updated diggers and dealers presentation that spoke of company’s Finniss Lithium Project, its esteemed customers, share price performance, mine plan and organic growth along with company’s focus for FY2023.  

Amid all this, it should be mentioned that Core Lithium’s share price has gained 48.10% on ASX in last six months, is above 85.71% on year-to-date basis and has surged by a whopping 265.62% in last one year. Founded in 2010 and ASX-listed in 2011, Core Lithium’s shares have skyrocketed 1,571.43% in last five years.

As of 30 June 2022, the company held AU$135 million cash on hand and no debt. The company has an undiluted market capitalisation of AU$2.02 billion and its share price was quoted at AU$1.205 apiece, up 3% at 10:27 AM AEST on 4 August 2022.

 

Finniss Lithium Project at a glance:

  1. Finniss is a state-of-the-art, newest lithium mine in Australia. Core Lithium discovered lithium at Finniss in 2016.
  2. A definitive feasibility study (DFS) was conducted in 2021.
  3. In September 2021, Final Investment Decision was taken and in October 2021 the construction commenced.
  4. The company expects to deliver first production in 2022 fourth quarter and first commercial production in 2023 first half.
  5. Finniss boasts of around 160kt spodumene concentrate production in a year for over a 12-year of mine life.
  6. It has already struck offtake agreements with companies like Gangfeng Lithium, Sichuan Yahua and Tesla.
  7. On an average, Core has spent AU$1.8 million for each year of mine life in the current mining plan. FY23 exploration programme of more than 40,000m at Finniss is the largest in CXO’s history.
  8. In the month of July, Core had upgraded the mineral resource estimate and ore reserves by 28% and 43% respectively, also extending the life of mine (LOM) to 12 years.
  9. On 1 August 2022, CXO provided an update on recent drilling results and exploration activities at the BP33 Deposit, part of the Finniss Lithium Project. The company shared that BP33 has delivered world-class high-grade lithium intersections.

Growing Lithium demand benefitting Core Lithium?

The demand  for Lithium has been on a rise in past couple of years. With the demand surpassing supply, the price of lithium has surged more than four times in last one year. Bolstered by a comparatively higher demand for electric vehicles worldwide, the price of lithium does not seem to be coming down any sooner.

As per a report by McKinsey & Company, lithium demand is likely to rise to 3-4 million tonnes in 2030. In 2021, the demand statistics stuck around 500,000 tonnes.

Touted to be Australia’s newest lithium miner, Core Lithium Ltd (ASX:CXO) has been making rounds of news of late due to its financial and mining activities.

On 4 August 2022, the materials giant shared an updated diggers and dealers presentation that spoke of company’s Finniss Lithium Project, its esteemed customers, share price performance, mine plan and organic growth along with company’s focus for FY2023.  

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