The share price of Core Lithium Ltd (ASX: CXO) soared by 26.7% on Thursday, reaching a 52-week high of 19 cents. This surge follows a broader rally among Australian lithium stocks, prompted by rising commodity prices. Notably, IGO Ltd (ASX: IGO) experienced a significant increase of 15.6%, reaching a high of $6.74, while Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Ltd (ASX: LTR) also posted gains of 8.7% and 11.4%, respectively.
Overnight, the Spodumene Concentrate Index (CIF China) price climbed by 0.92% to US$984 per tonne, marking an increase of approximately 18% over the past month. The lithium carbonate price surged to a three-month high of US$11,711 per tonne, reflecting a 1.2% increase overnight and a 14% rise over the same period. Analysts at Trading Economics attribute this upward trend to improving global demand for batteries and advancements in power infrastructure.
Core Lithium has seen remarkable performance over the past week, with shares up 35.7% since the market close on the previous Friday and a 7.7% increase just last week. This momentum is largely driven by heightened lithium prices and a recent update from the company regarding its operations.
Revised Mining Plan and Ore Reserve Update
On Monday, Core Lithium released an updated mine plan for its flagship Finniss Project, which had previously been placed into care and maintenance in early 2024 due to weak lithium prices. The updated plan indicates that the company aims to commence ore production within one month of reopening the Finniss site. This strategy includes deferring the transition of the Grants deposit from an open-pit mine to underground operations.
Core Lithium noted that full drilling depth was not achieved prior to the shutdown, meaning “ore remains readily available at the bottom of the existing open pit.” This delay in transitioning operations is expected to lower reopening costs and accelerate the timeline for generating revenue. The company estimates savings of approximately $35 million to $45 million in pre-production capital costs for the Grants deposit, which could facilitate attracting new funding partners essential for the restart of operations.
Additionally, Core Lithium increased its ore reserve estimate for the Grants deposit by 33% to 1.53 million tonnes at 1.42% Li2O. This revision represents a 44% increase in contained Li2O metal.
Core Lithium’s CEO, Paul Brown, commented on the developments: “Collectively, these changes lower capital intensity, support the ongoing strategic funding process, and strengthen Finniss as a compelling restart with a robust, independently supported operating plan.”
This week’s updates build upon the company’s restart study released in May, which identified strategies to decrease mining costs by 40% and processing costs by 33%. As the lithium market continues to evolve, Core Lithium’s proactive adjustments position it strongly in a competitive landscape.
Investors are keenly observing the developments at Core Lithium as the company navigates a revitalized market and seeks to capitalize on the growing demand for lithium, essential for battery production and renewable energy solutions.
