Core Lithium Reports Strong Production and Exploration Results

Australian lithium miner Core Lithium Limited (ASX: CXO) has released its Quarterly Activities Report for the quarter ended June 30, 2023, highlighting significant achievements and positive outlooks for the company.

Quarterly Highlights

Highlights include no significant safety incidents occur during the quarter, producing 14,685 tonnes of spodumene, meeting specifications with a concentration range of 5. 35% to 5. 6%, and shipping two shipments of spodumene concentrate, a maiden 5,500-tonne shipment in April and a second 13,100-tonne shipment in early July.

Core Lithium also received approval for $45-$50 million for early works on the BP33 underground mine, which is supplemented by ongoing feasibility studies.
Furthermore, the Finniss Mineral Resource leaned in with a 62% increase to 30. 6 million tonnes at 1.

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31% Li2O, while the exploration budget was raised to $25 million for FY24.

The company also recorded a cash balance of $152. 7 million with no debt, and completed its executive team by appointing Andrea Hall as Non-Executive Director. These Quarterly Highlights demonstrate Core Lithium Limited's ongoing success and positive future prospects.

Production and Cost Guidance

Core Lithium provided its maiden production and cost guidance based on 14 weeks of plant operations. The company expects spodumene sales of 90,000 to 100,000 tonnes and spodumene production of 80,000 to 90,000 tonnes for FY24. However, these estimates are lower than previous study estimates due to lower recoveries, mine plan adjustments, and mining rates. The expected C1 cost is $1,165 to $1,250 per tonne.

Looking ahead to FY25, Core anticipates increased mining and processing rates above FY24 levels. However, overall production in FY25 is expected to be lower due to anticipated gaps in ore supply and processing plant capacity constraints.

CEO's Statement

Gareth Manderson, Chief Executive Officer of Core Lithium, emphasised the importance of this quarter as a new phase for the company. He highlighted the successful production and sale of spodumene concentrate, as well as the team's efforts to explore and expand mineral resources in the Finniss district. Manderson acknowledged that the operation is still in its start-up phase and outlined improvement projects to enhance mining rates and lithia recoveries.

He emphasised that the Grants operation is providing near-term cash flow to fund Core's growth, while the BP33 mine remains a significant operation for the company's future. The revised feasibility study for BP33 is progressing well, and the management team is on track for a Final Investment Decision in the first quarter of 2024.

Manderson also mentioned the expansion of the exploration budget to $25 million for FY24, reflecting the company's commitment to resource growth. He concluded by expressing confidence in Core's ability to deliver sustainable value for its shareholders.

Core Lithium Limited continues to demonstrate strong production performance and exploration potential, positioning the company as a key player in the lithium market in Australia and beyond.

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