Core Lithium

Website: www.corelithium.com.au
Primary ticker: ASX:CXO
Stage of development: Development
Commodity: Lithium
Project to promote: Finniss Lithium Project
Project location: Australia
Company presentation: Click here
Company video: Click here

Live financials

Cash: AUD$4M
Debt: Nil

Major shareholders:
Yahua – 9%
Ruifu – 4%
Management Ownership – 2%

ASX-listed Core Lithium Ltd (ASX: CXO) is well positioned to be Australia’s next Lithium Producer, developing one of Australia’s most capital efficient and lowest cost spodumene lithium projects located in near to Darwin Port in the Northern Territory in Australia. The Finniss Lithium Project is within 25km of port, power station, gas, rail and 1 hour by sealed road to workforce accommodated in Darwin. Core’s 2019 DFS highlights production of 175,000tpa of high-quality lithium concentrate at a C1 Opex of US$300/t and US$50M Capex through simple and efficient DMS (gravity). Core received government approval in Q2 2020 and is working toward increasing Mineral Resources, Ore Reserves and mine-life ahead of being shovel-ready in the 2H 2020, with first lithium production scheduled within 15-months of commencing construction.

Management Profile

Stephen Biggins, Managing Director

Stephen has 25 years’ experience as a geologist and as an executive in both the mining industry in Australia and internationally. Stephen was founding director of Southern Gold (ASX: SAU) and led the acquisition and discovery of the Cannon Gold Mine in Western Australia. Stephen was also founding Director of Investigator Resources Ltd (ASX: IVR) which has discovered a high-grade Paris Silver Resource in South Australia.


Simon Iacopetta, CFO

Simon is a mining executive with broad experience in precious and base metals development and mining companies with projects in Australia, North America and Africa. He was most recently CFO of ASX listed precious and base metals developer Terramin Australia Limited and previously CFO of gold miner Ramelius Resources Limited.


What recent news would you like to highlight to investors attending?

Key NT Government approvals received for the Finniss Lithium Project in Apr-20 and an update to the Apr-19 DFS to be released in Q2 2020 targeting a mine life of between 7 – 10 years.


What are your key goals for the next 3, 6 and 12 months?

3 Months:
Secure remaining offtake (negotiations underway)
Mineral Resource and Ore Reserve Upgrades
Increase Mine Life targeting 7 – 10 years
Present an update to the Apr-19 DFS to market

6 Months:
Reach Final Investment Decision
Commence Construction

12 Months:
Become Australia’s next lithium producer


What do you think makes your company such a compelling investment?

Core’s approved Finniss Lithium Project will produce 175,000tpa of high-quality lithium concentrate at a C1 Opex of US$300/t and US$50M Capex through simple and efficient DMS (gravity). The Finniss Lithium Project is within 25km of port, power station, gas, rail and 1 hour by sealed road to workforce accommodated in Darwin.

Core received government approval in Q2 2020 and is working toward increasing Mineral Resources, Ore Reserves and mine-life ahead of being shovel-ready in the 2H 2020, with first lithium production scheduled within 15-months of commencing construction.

Analyst Insight – provided by Independent Investment Research

Core Lithium is an ASX-listed company that’s targeting lithium production through the development of its highly prospective Finniss Lithium Project, located near Darwin in the Northern Territory.

Core Lithium owns 100% of the Finniss Lithium Project, which has JORC 2012 compliant Mineral Resources of 3.45 million tonnes (Mt) at 1.4% lithium oxide (Li2O). It lies within one of the most prospective areas for lithium in the NT, the Bynoe pegmatite field, and covers over 500 sq km of granted tenements.

The company aims to develop one of Australia’s highest-grade lithium resources at the Grants Deposit and is also actively exploring the highly prospective BP33 Deposit, both of which are integral components of the Finniss Project. The Finniss Project has substantial infrastructure advantages; being close to grid power, gas and rail and within easy trucking distance by sealed road to Darwin Port – Australia’s nearest port to Asia.

During June 2018, Core released a Pre-Feasibility Study for the Grants Deposit, marking a major step forward in its goal become a major Australian lithium producer. Core’s development of the Finniss Lithium Project is initially centred on production from the high-grade Grants deposit as an open pit mining operation, and construction of a simple 1Mtpa Dense Media Separation (DMS) process plant that will produce a high quality 5% spodumene concentrate for export. The high grade of Grants, when coupled with proximity to infrastructure, low capital and operating costs, results in a development capable of delivering A$168 million (pre-tax) in free cash generation over a period of only 26 months.

The PFS confirms Grants as a financially viable operation, with A$346 million in revenue (pre-tax) to be generated over the 26-month life-of-mine, at a strong operating margin of 57% based on average life of mine sale price of US$649/t (FOB) (A$865/t at 75 cent exchange rate) concentrate, and up to 67% operating margin in the event sales prices closer to the current spot price of US$895/t (FOB) concentrate can be achieved. These strong operating margins provide for a rapid payback period of less than 12 months.