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█ ｜By Jack ACB News In the context of fluctuating lithium prices and intensified industry competition, operational efficiency and profitability have become critical for the sustainability of ASX-listed lithium mining companies. The recent slowdown in lithium salt demand and a significant decline in spodumene prices have posed substantial challenges for high-cost producers. On May 14, 2025, Core Lithium Ltd (ASX: CXO), an ASX-listed hard-rock lithium miner, announced significant advancements in cost control and sustainable development plan of its Finniss Lithium Project, marking a pivotal step in optimizing its operational model. The company's stock responded positively, surging 35.6% to close at A$0.099, with market cap at 212 million and trading volume reaching 126 million shares. The company released its Restart Study for the Finniss Lithium Project, located in Australia's Northern Territory, outlining a transformation into a low-cost, long-life underground operation with a projected 20-year mine life. The study confirms a high-confidence production plan, with 94% of the first 10 years backed by Ore Reserves. The Restart Study proposes a shift to underground mining, capitalizing on high-grade, continuous, steeply dipping orebodies that are open at depth. This approach aims to reduce mining costs by 40% to A$63–$72 per tonne and processing costs by 33% to A$40–$46 per tonne. Unit operating costs are projected at A$690–$785 per tonne (FOB, SC6 equivalent, ex-royalties), positioning Finniss among the most competitive global spodumene operations. Plant optimization efforts, including a simplified flowsheet and debottlenecking, are expected to deliver a 20% throughput uplift. Global recoveries are anticipated to increase to an average of 78%, producing a high-quality, coarse-grained concentrate. Annual concentrate production is projected to rise by 7% to approximately 205,000 tonnes (SC6 equivalent). Pre-production capital expenditure is estimated to decrease by 29% to A$175–$200 million, down from the previous estimate of A$282 million. The reconfigured operation is expected to generate A$1.2 billion in free cash flow, highlighting its strong economic potential. Key comparisons before and after optimization:
To support the project's restart, Core Lithium has appointed Morgan Stanley Australia Limited as a corporate advisor to lead the funding strategy, focusing on minimizing dilution for shareholders. The Final Investment Decision (FID) remains subject to Board approval, contingent on market conditions and securing a suitable funding pathway. CEO Paul Brown stated, "Our team has always believed in the potential of the Finniss Project, and I am pleased to share the results of the restart study with the market today. We have developed a plan that fully leverages the project's advantages, including established infrastructure, high-grade ore bodies suitable for low-cost underground mining, and processes with optimization potential." Following the announcement and surged price closed at A$0.099, capital inflow in the market was A$7.077 million, with an outflow of A$4.79 million, according to Tiger App. Copyright Notice: ACB News reserves full copyright over all articles explicitly marked as "original" content. No media outlet, corporate website, platform, or app within Australia may reproduce, excerpt, adapt, or republish such content in any form without prior written authorization from ACB News. Any unauthorized use or reproduction—including via third-party platforms—will be considered an infringement. ACB News reserves the right to pursue legal action against any such violations. |
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