Australian lithium miner Core Lithium Ltd (ASX: CXO) (Core or Company) is pleased to provide its quarterly activities report for the quarter ended 31 December 2023, and an updated investor presentation.
Summary
- The Company undertook a Strategic Review which resulted in the temporary suspension of open pit mining operations
- 39% increase in quarterly spodumene concentrate production, 28,837t (20,692t Q1FY24)
- 20% increase in lithia recoveries, averaging 60% for the quarter (50% 1QFY24)
- 30,718t of spodumene concentrate shipped (23,424t 1QFY24)
- 289kt of ore stocks at the end of the quarter in preparation for the wet season (185kt Q1FY24)
- BP33 Mineral Resource upgraded, a 35% increase on the previous estimate
- Capital spend guidance has been reduced and given the suspension of mining cash operating cost guidance has also been reduced
- Production (based on lithia units) is expected to be broadly in line with original guidance, however, the bottom end of the range has dropped below the initial forecast
- Cash balance at 31 December 2023 of $124.8 million
Strategic review
- Mining at Grants open pit and BP33 early works program temporarily suspended
- Processing of existing stockpiles will continue until mid CY 2024
- The BP33 and Carlton mine studies will continue
- Discretionary spending reduction program is underway: includes proposed cuts to studies, exploration and corporate costs
Commenting on the quarter, Core Chief Executive Officer Gareth Manderson said:
“There is no doubt we have seen strong operational improvement at Finniss as it has ramped up throughout the year.
“Operations continued largely uninterrupted during the quarter despite above average rainfall in November, and spodumene concentrate production was close to 40% higher than the previous quarter as a result of strong operational improvement. The team has made significant progress increasing lithia recoveries in the plant and it has been very pleasing to see these increase to average 60% for the quarter, up from 50% the prior quarter.
“With the rapid shifts in lithium market pricing, Core moved quickly to undertake a strategic review, resulting in the temporary suspension of mining and BP33 early works to conserve cash, and preserve the value of the underlying business.
“The work undertaken ahead of the wet season has successfully established ore stockpiles that will see us produce concentrate for the next 5-6 months at a lower overall cash cost, due to the suspension of mining.
“This approach will preserve Finniss’ long-term value and ensure we are prepared to move quickly to restart mining in a more favourable pricing environment.”
