Core Lithium (ASX: CXO) and Global Lithium (ASX: GL1) presented back-to-back in the final session of presentation at Diggers & Dealers today.
No matter where a project sits on the development timeline, it’s a tough time to be a pure-play lithium company.
Global Lithium’s development trajectory echoes that of Core Lithium, which paused its development plans in 2019 due to soft lithium prices.
While the two lithium darlings of last year are at very different development stages, their focus is the same: save cash, weather the storm and be ready to make hay when the sun shines.
In Core’s third Diggers appearance with as many presenters, new boss Paul Brown said the company’s 30 June cash balance of $87 million and no debt would see it through the doldrums, and that the near-new Finniss mine was restart-ready.
“In my short time in the role I have been to site a few times and am just amazed by the quality of the asset. It’s been built incredibly well,” he said.
It’s worth noting that first lithium was discovered at Finniss in 2016. The Company completed a Definitive Feasibility Study (DFS) in April 2019 but paused development plans due to softening prices.
Core worked with what it could control to ensure that it was ready for lithium prices rebound. Fast forward to September 2021, and FID kickstarted the massive ramp up to build the mine. Construction of the DMS plant started in June 2022, and first spodumene concentrate production in in May 2023.
“I certainly recognise and take my hat off to those who served before me to get the organisation into this position,” he said.
“The total CapEx was $250 million, I’m just not sure you could repeat that in today’s climate.”
When the call was made to place Finniss in care and maintenance, Core was building its second mine, BP33, in parallel to completing a feasibility study and eventually FID.
The Grants pit was to be Finniss’ starter mine, and BP33 the long-life underground operation that would underpin its 12-year mine life.
Mr Brown said it’s now about consolidating the learnings and winding back unnecessary costs.
“We’re doing our planning, we’re getting organised. We have a strong balance sheet and we’re debt free.
“When we get going again, we’ll get going fast.”
Global Lithium boss, Ron Mitchell, echoed Paul’s sentiment.
The company is targeting completion of a DFS for its Manna project near Kalgoorlie by the end of the calendar year, so that it is ready to for a Final Investment Decision once prices rebound.
“Being ready for the rebound is exactly how we’re positioned,” Mr Mitchell said.
Like Mr Brown, Mr Mitchell said the company’s $27 million cash position at 30 June was vital in the current market, and would see it through to FID.
The company recently upgraded the Manna project Mineral Resource Estimate by 43% to 51.8Mt at 1.0% Li2O. The ore body remains open to the southeast and at depth.
“We’ve delivered that resource over two and half years of drilling. We think there’s more, but at 50-odd-million tonnes, you’ve got a standalone project,” he said.
He said the company is well underway defining the project and moving it through the DFS – ultimately to be in the position to make a positive FID in the June quarter of 2025.
“When the market does tighten up, it will be projects like ours that are first and foremost on the radar for development,” he said.
“I’ve been in the lithium sector for 14 years now and I’ve seen a few of these cycles. So I know what’s ahead,” he said.
Touch base with the Purple team. Peter Klinger and Gerard McArtney are in Kalgoorlie-Boulder and will be at Diggers & Dealers for the entirety of the conference.
