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Core Lithium (ASX:CXO) shares popped 5% around lunchtime trades as the company revealed its plans to restart the NT-based Finniss lithium project, the assets for which it’s about to outright own.
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Over $700,000 worth of shares had traded hands at the start of lunch, with Australian shareholders obviously happy to see that Finniss isn’t finished yet. Of course, the question of lithium prices remains.
Still, Core will spend $19.5M to boast a proper 100% ownership of the project and all its contents – think heavy machinery – with the game thereafter ‘reducing complexities’ on-site to make the manufacturing process as cheap and efficient as possible.
That will be a requirement: the white metal is far, far off the highs it experienced in the early 2020s, borne from both supply constraints and undeniable hype. (Hype so strong it legitimately drove fundamentals.)
“Work completed to date has reinforced the future opportunity which exists at Finniss.” Fairly clear language Core isn’t giving up the dream yet. Makes sense after spending $250M.
Core noted it still has a pegmatite-containing prospective target which is pretty shored up and also added that metallurgical testwork continues to roll on so that the company can increase “future recoveries.”
When that future will be remains the question.
On that front, Core said Thursday its restart is dependent on “market conditions.”
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Conditions couldn’t be any worse – but given residual investor interest in the stock, it’s clear some are hopeful the stock can recharge.
CXO last traded at 8cps.
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