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For the HotCopper Wire’s “Trending” segment this week, Isaac McIntyre and Jonathon Davidson picked out Core Lithium (ASX:CXO) and its Finniss restart package. (Though, if you hear them tell it, Core really picked itself.)
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The lithium player has enjoyed a strong Week 12 after drawing up a positive Final Investment Decision alongside its Finniss restart package. The restart is fully funded, backed by US$70M from Glencore and InfraVia, US$50M loan from Nebari, and a two-tranche equity raising totalling as much as $120M.
“Good week for Core so far,” McIntyre said, pointing out that Core’s stability in a bloody trading week suggests investors like what they’ve seen.
Davidson agreed, declaring the lithium explorer has “got its groove back.”
“The nation still remembers fondly the erstwhile years of the lithium boom, when Pilbara Minerals made legions of paper millionaires overnight… although that’s not saying much in the current housing market,” he said.
“Core was right there along with IGO and a litany of mediums and juniors who all went crazy as COVID-19 supply chains converged with real EV demand, all spurred by government rebates in major economies, plus the fact lithium was just sexy, it was new, it was a bit like AI; new tech, out with the old in with the new, what on God’s earth is spodumene, it’s making me rich.”
That excitement seems to be bubbling up again, JD explained, especially because Core is actually getting the gears moving on its spodumene production. With lithium often built on hype, it’s “big news,” he said.
The whole thing does come with a warning, though: Early hype doesn’t mean those golden or crystalline white boom years are actually returning.
Between Tesla falling off a superpower investment and BYD emerging as a cheaper alternative in Australian markets, there’s every chance the EV thematic doesn’t crack quite the same tune this time around, they agreed.
“The EV story has become old hat,” JD said. “I don’t think it’s sexy anymore, and there are two things investment types love to forget matter: The honeymoon period of tech as new, and something being a household name.”
Whether CXO (and the rest of the lithium crew) actually returns to lofty heights remains to be seen. Today, the lithium player is fetching 21cps at open.
If you want to hear more, listen to the full HotCopper Wire episode below.
You can also find the POD to listen to and download over on Spotify.
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