Core Lithium Reports Maiden Profit in FY23, Sets Ambitious Growth Plans

Key Financial Milestones

Australian lithium miner, Core Lithium Ltd (ASX: CXO), achieved a significant milestone in the fiscal year 2023, as it posted its first-ever full-year profit since venturing into lithium production. The company's

FY23 financial results reveal a remarkable journey:

• Maiden Profit: Core Lithium reported a net profit after tax of AU$10.8 million, marking its first profit as a lithium producer. This achievement underscores the company's rapid transition into production within a robust pricing environment.
• Strong Cash Flow: Operating cash flows stood at an impressive AU$90.8 million, showcasing Core's financial strength and stability. As of year-end, the company held a cash balance of AU$153 million.
• Revenue Milestone: Core Lithium generated AU$50.6 million in revenue, signifying a successful year in its lithium production journey.
• Production and Sales: Core commenced spodumene concentrate production, with 18,274 tonnes produced and 5,423 tonnes shipped from its Finniss Operations during the year. Post-year-end, an additional 23,100 tonnes of spodumene concentrate and 15,000 tonnes of lithium fines were shipped to customers.
• Production Guidance: The company provided its first production guidance, aiming to sell between 90,000 to 100,000 tonnes of spodumene concentrate in FY24.

Sustainable and Responsible Operations

Core Lithium emphasized its commitment to sustainability and responsible mining throughout FY23:

• Critical Risk Management (CRM): The company implemented the CRM program, prioritizing the identification and management of fatality risks for both employees and contractors.
• Environmental Stewardship: Core actively engaged in environmentally responsible practices, partnering with the Kenbi Rangers for land and water management. Innovative drone technology was employed for water monitoring and treatment practices.
• Diversity and Inclusion: Core demonstrated a commitment to diversity, with 32% of its team and 28% of senior leadership being women. A female non-executive director was also appointed.
• Community Support: The company launched a community grants program to support local initiatives and sponsored the Darwin Festival.
• Modern Slavery Clause: Core Lithium introduced a modern slavery clause in its supplier contracts to safeguard human rights within its supply chain.

Exploration and Development

During FY23, Core made significant progress in exploration and development:

• Mineral Resource Expansion: The Finniss Mineral Resource estimate increased by 62% to 30.6 million tonnes at 1.31% Li2O, including the BP33 Mineral Resource estimate of 10.1 million tonnes at 1.48% Li2O.
• BP33 Expansion: Core's BP33 mineral resource estimate more than doubled, leading to the approval of up to AU$50 million for BP33 early works and a feasibility study revision, scheduled for Q3FY24.
• Growth Initiatives: The company's exploration program received increased funding, targeting growth opportunities at Carlton and other identified deposits.

Core Lithium's FY23 achievements reflect its rapid growth in the lithium production sector, setting the stage for further expansion and development in the years ahead.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com