CXO - Core Lithium

[PZ99]

Announcement today: SP -10% to 5.1c

Finniss Definitive Feasibility Study and Maiden Ore Reserve Highlights

• Finniss Lithium Project (Project or Finniss) Definitive Feasibility Study (DFS) confirms that Core Lithium Ltd (Core) is well positioned to be the next lithium producer in Australia

• DFS focussed on the development of Ore Reserves within the first two orebodies at Finniss (Grants and BP33) over an initial 3.5 year period

• Mining high-grade Ore Reserves of 1.4% Li2O combined with exceptional spodumene metallurgy enable Core to produce high quality, coarse concentrate using simple gravity DMS processing

• Project comprises a low risk, open pit mining operation and DMS processing up to 180,000 tpa of high-quality lithium concentrate with robust margins

• Excellent DFS economics are reflected in the high Pre-Tax Nominal IRR of 80%, NPV of A$114 million and free cash flows of A$158 million from revenue of A$501 million

• Low start-up capital costs of A$73 million (including pre-production mining costs for Grants) and strong cash flows enable quick payback of 1.5 years and confirms Finniss as one of Australia’s lowest capital intensity projects

• C1 FOB Operating Costs of US$300/t concentrate (A$429/t) generates a robust operating margin of more than US$300/t on low case pricing assumptions

• Significant potential upside to economics remains through conversion of more Mineral Resources into Ore Reserves (including BP33) and through Core’s ongoing exploration in the broader Finniss Project

• Further Project expansion and increase of Mineral Resource category confidence and integration of the nearby Mineral Resources including Carlton, Hang Gong, Booths-Lees and regional exploration planned in 2019

• Financing discussions advancing with debt markets and strategic financiers • Over one third of Project Capex can be met with US$20 million pre-payment (A$29 million) commitment by Core’s largest shareholder - and major Chinese lithium producer - Yahua Group

• Regulatory approvals, Offtake and Finance discussions progressing to support rapid construction timetable commencing 2H 2019 toward ramping up commercial production 1H 2020

 

[PZ99]

• The Northern Territory Environment Protection Authority (NTEPA) has delivered a positive Assessment Report for the development of the Grants Lithium Project

• Significant milestone achieved within the NT approval process • NTEPA’s recommendations pave the way for approval of the Finniss Lithium Project’s Mining Management Plan

• NTEPA’s Assessment Report follows the landmark $8.125 million royalty agreement with Lithium Royalty Corporation (LRC)

• $2 million Share Purchase Plan (SPP) to close in the next few days

https://www.proactiveinvestors.com....-australias-next-lithium-producer-222289.html

 

[PZ99]

 

[PZ99]

Soooo, CXO has reached a stage where all the above ramping can be ignored because they have until 31st December to satisfy the conditions of the prepayment by Yahua.

Spoiler: The Prepayment Agreement

2017...

Pursuant to the Prepayment Agreement that has been executed with Yahua, subject to the satisfaction of various conditions precedent, Yahua has agreed to provide a US$20 million prepayment to Core to be used for the development of the Grants lithium deposit. The prepayment will be offset by Core through the delivery of either DSO or Li2O concentrate production from the Finniss Lithium Project or cash payment.

Core will be able to access the prepayment in three tranches, subject to its satisfying various conditions precedent, including the grant of a Mining Licence and receipt of all necessary regulatory approvals to commence mining, a decision to mine being made by no later than 31 December 2019, the granting of a mining mortgage over the Grants Mining License and the completion of a Feasibility Study that demonstrates a Measured and Indicated Mineral Resource of at least 1Mt and supports a Net Present Value of greater than US$20 million for the development of the Grants Lithium Deposit.

If Core draws down on the prepayment facility, Yahua’s first right of refusal will be extended from the Mineral Lease area and EL 29698 only (as provided for in the Offtake Agreement), to a first right over 50% of the production of DSO from the Company’s Finniss Lithium Project tenements, which may be extended to Li2O Concentrate in the event that Core decides to produce Li2O Concentrate from the Finniss Lithium Project

They are still awaiting the final approval for the Mining Management Plan so December will be do or die for CXO - hence the tip in the December comp + to be a thorn in the side of some NIMBY rumjunglenet with a virtual silicon valley in his diesel powered Commodore 64

 

[bigdog]

ASX announcement today
16/01/2020 10:02:42 AM World-class High-Grade Lithium Intersection at Finniss (uploaded)

Looks VG
World-class lithium intersection of 107m @ 1.70% Li2O at Finniss Lithium Project near Darwin in the NT;

ASX: CXO Announcement
16 January 2020
World-class High-Grade Lithium Intersection of 107m @ 1.70% Li2O at Finniss
Highlights
• World-class lithium intersection of 107m @ 1.70% Li2O at Finniss Lithium Project near Darwin in the NT;
• Two other recent RC drill holes at BP33 Prospect have also intersected spodumene pegmatite;
• These new spodumene pegmatite intersections are outside of, and will substantially extend, the current Mineral Resource at BP33;
• Substantial upgrade to BP33 Mineral Resource and Ore Reserve planned next month;
• The expanded, high-grade lithium deposit at BP33 is expected to contribute significantly to an increased mine life at Finniss;
• Mining studies and updated Feasibility Study, to be completed in the first half of 2020, are expected to show high-grade continuous mineralisation at BP33 and Carlton and is amenable to efficient underground mining methods; and
• Approvals and financing discussions continuing and further offtake progressing, with the plan for the project to be construction-ready as market conditions improve in 2020.

429

 

[Dona Ferentes]

Core Lithium has discovered more than 80 gold nuggets at its Bynoe gold project in the Northern Territory. Each nugget weighs up to five grams in size and were found within a newly discovered gold in soils anomaly in the northern part of the Bynoe tenements.

Core unearthed five rock chips grading above 10 grams per tonne and 17 samples above one gram per tonne.

Core managing director Stephen Biggins said that the company saw the recent discoveries as the most significant evidence of largescale gold mineralising systems at play in the Bynoe gold project to date.

"While this area has not previously been explored for gold, it is not surprising how much gold we are finding in only our first few months of exploration, given that this region hosts over 13 million ounces of gold and has produced between 4 to 5 million ounces of gold.”

Core will now conduct its first shallow gold drilling program on its four new prospects; Windswept, Hurricane, Congo and Far East, across a 1600 metre gold trend.

 

[Faramir]

I am picking CXO for January 2021 Tipping Competition. Never looked into a miner before, especially a speccy miner. These pictures will tell more. The last one is best. It better continue its trend. Two to five minutes research is more than enough to pick a stock (& generate post activity for the forum). Pity I was too busy for December tipping deadline and I missed choosing a stock, especially this one.

 

[Red Dwarf01]

CXO is my top pick as it was the first share that I bought on the stock exchange last year 2020 @4cents a share. I wanted to support local business, local jobs and help the Australian community and economy. Plus Lithium makes a variety of products that we refer to as renewable technologies/energies. Gut instinct

 

[Red Dwarf01]

 

[Dona Ferentes]

trading halt is requested pending the release of an announcement in relation to a share placement;

and it would seem it's happening, as sure as night follows day:
"Stockbrokers Taylor Collison and Bell Potter have locked in investors to tip as much as $30 million into ASX-listed Core Lithium."

that's likely to slow down the recent rises:

 

[Dona Ferentes]

or $40M

and it would seem it's happening, as sure as night follows day:
"Stockbrokers Taylor Collison and Bell Potter have locked in investors to tip as much as $30 million into ASX-listed Core Lithium."

Highlights
• Core raises $40 million to advance development of the Finniss Lithium Project in placement to global institutional investors
• Project substantially de-risked with funding through to construction, anticipated to commence prior to year-end, subject to FID
• Core well capitalised to accelerate resource drilling, further increase mine life, advance spodumene project development and preliminary LiOH design
• Shares placed to a select group of high-quality global institutional investors, primarily in North America, Europe and Australia

 

[Dona Ferentes]

CXO is a beneficiary of better Lithium prices ...The company achieved the production of battery-grade lithium hydroxide monohydrate on Tuesday 06/04.

Market has lifted CXO by 10% as it ticks a few boxes.

Core Lithium Managing Director Stephen Biggins said: “Today’s announcement confirms that battery grade lithium hydroxide suitable for high-end uses in the lithium battery, renewable energy and electric vehicle industries, can be produced from Core’s excellent quality lithium concentrate produced from .. Finniss.

“This successful proof-of-concept test work provides Core, and our customers, the confidence in utilising Finniss lithium concentrates in the global lithium battery supply chain.

“Together with the recent award of Major Project Status from the Federal Government, this program lays a foundation for Core to explore the potential of adding downstream processing infrastructure to our portfolio, incorporating the strong synergies with the infrastructure at the nearby Middle-Arm Industrial Precinct at Darwin Port and aligning with Australia’s national Modern Manufacturing Strategy and expansion of the Global lithium battery supply chain.”

Meantime, with respect to the global market, Fastmarkets said the supply for lithium carbonate was more challenging than lithium hydroxide. A consumer was quoted as saying:

In March, producers were not willing to make large sales because supply is quite tight; moving into April, they are increasingly less willing to sell because of the rapid rally of spodumene price.

 

[greggles]

CXO up 11.5% to 29c today after news that its largest shareholder Yahua plans to double its lithium hydroxide output. I find it very interesting that this announcement was not marked as price sensitive given the potential implications.

I'm starting to think it's possible that this might be the prelude to a takeover bid. The next few weeks should be an interesting time for CXO...

 

[greggles]

Strong bullish move today through 29c, a level CXO had failed twice to break through back in April.

 

[Dona Ferentes]

lithium explorer Core Lithium has raised $91 million from investors at 31¢ per share.

The company said this means stage one of its Finniss lithium project, 25 kilometres outside Darwin, is now fully funded when including a $34 million investment from Chinese group Ganfeng.

Shares last closed at 36¢ and have ridden the lithium wave; they were trading at 5c last November

 

[waterbottle]

Anyone holding?

Seems like they've approved their Finniss plan, should be in production be late 2022

 

[Dona Ferentes]

Rising prices for lithium have emboldened the directors of Core Lithium to push ahead with development of the NT's first lithium mine.

Core will spend $89 million building its Finniss mine, 88 kilometres by road from Darwin port. The mine is hoped to be exporting a spodumene concentrate with lithia content of 5.8 per cent before Christmas 2022.

Highlights
• The Board of Core has made the Final Investment Decision (FID) to proceed with construction of the Finniss Lithium Project in the Northern Territory
• The Finniss development is fully funded
• Project execution to start immediately, with mobilisation and site establishment activities to commence during October 2021
• Commissioning of the DMS plant and first production of lithium concentrate scheduled for Q4 2022
• 250 jobs to be created during construction and operations
• Core uniquely placed on the ASX ... as the only new Australian company forecast to start lithium production in 2022, and to take advantage of high lithium prices

 

[Boggo]

Anyone holding?

Yes, should have bought more. I believe they are destined for a big future.

 

[Robbo]

On a nice run at the moment, and looks to be behaving nicely.

Extreme volume days followed by consolidation with declining volume, suggesting selling exhausting before proceeding higher. Yesterdays candle looks like a healthy inside day after a strong push last week, followed by a another healthy rise today.

 

[Faramir]

Damn I wished I picked this for this month tipping comp but I had to follow my silly rule of only picking a random stock and not the same one twice. CXO gave me the best tipping result this year. I never knew CXO was a little gem back in January (or February?) this year.