Mining stocks drive ASX higher; Core Lithium increases by over 25 percent

Shares in Australia’s newest lithium miner, Core Lithium, rose 25 percent after it posted a net profit from initial shipments of the ore known as “white gold.”

Core Lithium, which owns the Finniss lithium mine near Darwin, became Australia’s youngest lithium producer in May.

The company’s shares rose 25 percent to 43 cents on Friday. However, the stock has not recovered to the highs of around $1.60 reached in November last year.

The minnow group, which is the fifth most shorted stock on the ASX, shocked investor confidence in July when it said its plan to develop several small, adjacent mines would take longer than expected.

Core told investors in July that lithium production would be lower in the year to June 2025 due to capacity constraints at its lithium processing plant. Core also reported that development of its second mine, known as BP33, was slower than expected.

The company reported on Friday that initial work and updated feasibility study on Finniss’ potential cornerstone asset, BP33, is progressing well and the FID project is on track for the March quarter.

On Friday, Core reported net profit of $10 million – its first full-year profit as a lithium producer – in the 12 months ended June 30. The project generated revenue of $50.6 million. Core reported a net loss of $7.5 million last year.

Core said it produced a total of 18,274 tonnes of lithium-rich spodumene concentrate via the Port of Darwin for an average of $4,163 per tonne. It also produced 14.77 tons of direct-shipped ore, which is a low-grade lithium product often sold by junior miners to make money, for an average of $951 per ton.

Core maintained its initial production guidance of 90,000 to 100,000 spodumene concentrates sold for fiscal 2024.

CEO Gareth Manderson said Core achieved initial revenue in the second half of the year, completed construction of its Finniss project and began producing and selling spodumene concentrate.

“Achieving an initial profit in the first year is a significant achievement and a testament to the strategy to move quickly into production in a strong pricing environment,” he said.