CXO stock in discussion- What are Core Lithium’s recent developments?

January 27, 2023 03:12 PM AEDT | By Sukriti
 CXO stock in discussion- What are Core Lithium’s recent developments?
Image source: © Avigatorphotographer | Megapixl.com

Highlights

  • CXO stock traded in the green zone on 27 January 2023, at AU$1.13.
  • Core Lithium Ltd’s (ASX:CXO) broader strategy is to build a sustainable, value-driven lithium business.
  • CXO recently reported its first revenue event- the maiden shipment of lithium product from Finniss to China.

At noon on 27 January 2023, the CXO stock traded at AU$1.13, up nearly 1%. The Australian hard-rock lithium miner witnessed a trading volume of over 14 million, and its market capitalisation stood at AU$2.07 billion. Core Lithium Ltd (ASX:CXO) owns and operates the Finniss Lithium Operation. The company’s broader strategy is to build a sustainable, value-driven lithium business.

CXO’s corporate developments

The company has decided to relocate its corporate head office to Perth, Western Australia. This appears to be a strategic move, as Perth is regarded as the corporate centre of Australia’s lithium industry. The decision also appears to be in line with CXO’s strategy to create a sustainable, value-driven lithium business. How it affects the overall business in terms of financials might become clear over the coming quarters.

Additionally, the company recently announced a big change in its top team, with two key appointments to the executive leadership team- Melissa Winks as Executive General Manager, Sustainability and Andrew Forman as Interim Chief Financial Officer (CFO).

Unveiling CXO’s first revenue event

Earlier in January 2023, CXO notified about the sail of its maiden Direct Shipping Ore (DSO) shipment, from Darwin for customer in China. Loading started in December 2022.

Image source- Szelei Robert | Pexels

Rossana, a ship loaded with 15,000 dmt of 1.4% Li2O spodumene DSO from the Finniss Lithium Operation, set sail from Darwin Port to a customer in China. The DSO cargo was tendered in October 2022 and purchased by the lithium-ion battery supply chain participant in Fangcheng, China at US$951/dmt.

Interestingly, this happened at a time when spodumene prices continue to rise, and many credible forecasters expect the price to be at elevated levels in the months to come.

For CXO, the event has been claimed a significant milestone as-

  • It marks the maiden shipment of lithium product from Finniss.
  • It is the company’s first revenue event.
  • It allows CXO’s team to commission the logistics chain linking Finniss to Darwin Port.

What’s in store at CXO?

CEO Gareth Manderson has said that the company is focusing on completing the construction of the dense media separation (DMS) plant at Finniss. This is likely to enable CXO in producing high-quality spodumene concentrate.

Further, CXO’s Board has acknowledged the company’s ability to grow the Finniss resource and mine life. They believe that the global demand for lithium might remain strong. Since the Final Investment Decision made a few months ago, CXO’s forecast life of mine has grown by 50% to a minimum of 12 years, and the lithium price has risen substantially. The company’s exploration budget might also increase this year.


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