Core Lithium Ltd (ASX:CXO) Announces Restart Study
Study Highlights
Core Lithium Ltd (ASX:CXO) has announced the successful completion of its Restart Study for the Finniss Lithium Operation. The study confirms a highly attractive 20-year mine life, reinforcing Finniss as a low-cost operation.
Operational Achievements
The Restart Study validates a robust production plan, with 94% of the first ten years backed by Ore Reserves. Transitioning to underground mining, Finniss capitalises on high-grade, continuous, and steeply dipping orebodies that remain open at depth.
Cost Structure and Productivity Gains
Mining costs have been reduced by 40% to $63–$72 per tonne, down from $120 per tonne. Processing costs have been cut by 33% to $40–$46 per tonne, from $69 per tonne. Unit operating costs now range between $690 and $785 per tonne (FOB, SC6 eq ex-royalties), placing Finniss among the most competitive global spodumene operations. Concentrate production has increased by 7% to approximately 205ktpa SC6 equivalent.
Plant Optimisation
The plant flowsheet has been simplified and debottlenecked, delivering a 20% throughput uplift without major capital expenses. Global recoveries have increased to an average of 78%, producing a high-quality, coarse-grained concentrate. Additionally, the processing plant and infrastructure are transitioning to 100% Core-owned, ensuring full operational control.
Financial Performance
Pre-production capital expenditures have been reduced by 29% to $175–$200 million, from $282 million. The reconfigured operation is projected to generate free cash flow of $1.2 billion, highlighting the strength of the new plan.
Future Outlook and Funding
Core Lithium has initiated a strategic funding process, appointing Morgan Stanley Australia Limited as its corporate advisor to lead the funding strategy. The focus is on minimizing shareholder dilution and securing a suitable funding pathway. The Final Investment Decision (FID) will require Board approval, contingent on market conditions and funding arrangements.
Executive Comments
Chief Executive Officer Paul Brown commented:
“Our team has always believed in the opportunity at Finniss, and I’m pleased to share the Restart Study with the market today. The plan we’ve outlined capitalises on the Project’s strengths, including established infrastructure, high-grade ore bodies well-suited to low-cost underground mining and a process plant with proven recoveries and further scope for optimisation.
We’ve undertaken a rigorous, bottom-up review of every aspect of the operation. The Study brings together our operating experience to deliver a plan that is more robust, more efficient and built for the long term. At BP33, we are developing a large-scale underground mine. Grants will shift to underground mining, cutting costs and doubling its mine life. Carlton will use Grants’ surface infrastructure, supporting a 20 year mine life. Blackbeard offers further potential to extend mine life and expand operations.
Our plant upgrades will improve recovery and reduce contaminants, whilst keeping capital costs low. These improvements include enhanced screening, with more affordable crushing and the addition of a gravity circuit. This resets Finniss as a more resilient operation to price volatility, and will be a reliable source of high-quality, coarse-grained spodumene concentrate.
The Study outlines a lower-cost, longer-life, and scalable operating plan that generates free cash flow of $1.2 billion, representing a six-fold return on pre-production capital. Core has identified a range of opportunities and is considering multiple funding pathways. Our focus is to secure an option that minimises dilution and maximises value for shareholders.
Finniss remains an important project for the Northern Territory. While no restart decision has been made, there is the potential to create several hundred jobs, many of which would be residential. We’ve had strong support from the NT Government and look forward to continuing that collaboration.
Finally, I want to thank the Core team and our consultants. This is a substantial piece of work, and the quality of the Study reflects the deep experience and capability of everyone involved.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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