Conventional wisdom tells investors that companies building solid foundations during a soft market are primed to realise strong growth when it turns.
Core Lithium’s (ASX: CXO) success – since acquiring the Finniss blue-sky opportunity near Darwin in 2016 before approving a lithium project development in 2021 – is a textbook example of a company working through the ups and downs of the commodity cycle and regulatory approvals.
The Gareth Manderson-run company this week took a significant step on its journey to steady revenue after loading a maiden 5,500t shipment of battery grade spodumene concentrate – coinciding with news the Northern Territory Government had granted approval of the mine management plan (MMP) for BP33, which is scheduled to follow Grants as the second mine at Finniss.
North of Perth in Western Australia, VRX Silica (ASX: VRX) has been upfront with the market about the lengthy environmental approvals process for its Arrowsmith and Muchea projects.
It has not dimmed VRX’s enthusiasm for its goal to become a producer of high-purity silica sand – and this week the Bruce Maluish-led company said it had delineated a significant 523 million tonne inferred mineral resource estimate (grading 97.3% silica) at the newly named Arrowsmith Brand project, south of the flagship Arrowsmith North deposit.
And FBR (ASX: FBR) made up the trifecta of companies announcing important milestones this week when the Mike Pivac-run company said its next-generation Hadrian X bricklaying robot had achieved a new sustained lay speed record of more than 300 bricks per hour.
But back to the world of lithium.
Core’s maiden shipment of spodumene concentrate comprised the 3,500t cargo produced from commissioning ore at Finniss as well as an additional 2,000t produced since mining operations recommenced at the Grants pit in March.
The shipment was sold to long-term partner Sichuan Yahua as part of the offtake agreements for an extra 18,500t of concentrate, as announced in March.
Last month, Core received $21 million as a 90% down payment for the 3,500t cargo and a $91.6 million pre-payment to cover 80% of the 15,000t cargo in April. The balance of the purchase price for both cargoes will be paid on receipt of each full parcel by Yahua. The delivery of the second parcel is expected to be made in July 2023.
Mr Manderson said Core’s focus now was to complete the commissioning of the concentrator and ramp up operations at Finniss. BP33’s development as the second mine at Finniss continues to be advanced.
Speaking at Darwin Port while observing the loading of the maiden cargo of Finniss spodumene concentrate, Northern Territory’s Deputy Chief Minister and Mining Minister Nicole Manison announced that her Government had granted authorisation and approved the mine plan for BP33.
BP33 has a Mineral Resource of 10.1Mt at 1.48% Li2O and is located just 5km from the Grants open pit, crusher and DMS plant. Alongside progressing development of BP33 to ensure a smooth transition from Grants, Core is focused on continuing to expand the overall Finniss resource by drilling out other nearby deposits.
“We have been able to commence operations at Finniss in a favourable market when it can deliver benefits for the Northern Territory and all its stakeholders due to the professional and efficient processes for approvals. The BP33 development approval is another example of this,” Mr Manderson said.
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“The first export of Finniss’ spodumene concentrate was delivered safely to port ahead of schedule. This is a significant milestone for the Core business, our shareholders and the Finniss lithium operation.
“With the resumption of full mining activities at Grants, we were also able to produce, transport and load an additional 2,000t onto the (ship) St Andrew as part of our sales agreements with Yahua.”
For VRX, delineating the Arrowsmith Brand resource is about long-term development optionality.
Mr Maluish told shareholders at the RIU Sydney conference during the week that even though the approvals process was slow, the company had been proactively working to ensure it was ready to ramp up and capitalise on the thriving global demand for high-quality silica sand as soon as all approvals were received.
“The combined resources at the Arrowsmith projects now provide a future pipeline of additional production utilising some of the infrastructure to be developed at the Arrowsmith North project,” Mr Maluish said.
“Although development of Arrowsmith Brand is not a priority at the moment, VRX is cognisant of the extended timelines that are now commonplace for mining approvals and this project has the potential to expand production to meet the ever-increasing demand for silica sand products.
“The silica sand at Brand is similar to Arrowsmith North and test work to date has included samples from within this resource and indicated similar products can be produced.”
FBR’s approvals journey is driven more by internal and customer validation of its Hadrian X bricklaying technology as it advances its ambition to deliver the world’s fastest, cheapest, safest and lowest-waste building of low-rise structural walls.
This week, the Hadrian X set a new sustained lay speed record of more than 300 blocks per hour using US-format cement masonry blocks – far surpassing the record of its predecessor, the Hadrian, which achieved 109 blocks per hour.
The record was set during testing and calibration of the next-generation Hadrian X, which demonstrated lay rates equating to more than 70 vertical square metres of wall per hour. By using larger-format and readily available blocks the Hadrian X could lay the walls of a standard double-brick house in a single day.
“Achieving a lay speed record during calibration of our first next-generation Hadrian X is extremely encouraging, with expectations that the lay rate will become significantly faster still,” Mr Pivac said.
“In our testing and calibration program we are using the most commonly used cement masonry blocks in the world. However, using larger-format and readily available blocks at the rates we have demonstrated to date means we could robotically lay, on site, the walls of a standard double-brick house in a single day.
“With the labour constraints being experienced in the construction industry globally and the ability to significantly reduce overall construction times and costs, we are on track to deliver a compelling efficiency gain to the industry while keeping clay, AAC and cement masonry blocks as the fastest, cheapest and most durable wall production materials into the future.
“We are very much on track to achieve our goal (for) Hadrian (to be) the fastest, cheapest, safest and lowest waste way to erect low-rise structural wall anywhere in the world.”