Core Lithium Reports Strong Quarterly Activities and Growth Prospects

Quarterly Highlights

• No significant safety incidents occurred during the quarter.
• Spodumene production reached 14,685 tonnes, with a C1 unit cost of AU$902/t.
• Maiden 5,500-tonne spodumene concentrate shipment in April and a second 13,100-tonne shipment in early July.
• Total Finniss Mineral Resource increased by 62% to 30.6Mt @1.31% Li2O.
• AU$25 million exploration program underway to identify potential growth prospects.
• Cash balance of AU$152.7 million and no debt as of 30 June 2023.

Source: Kapitales Research

Production and Cost Guidance

• Core Lithium Limited’s (ASX: CXO) maiden production and cost guidance for FY24: spodumene sales of 90,000 to 100,000 tonnes, spodumene production of 80,000 to 90,000 tonnes, at a C1 cost of AU$1,165 to AU$1,250 per tonne.
• Outlook for FY25 anticipates higher mining and processing rates, but overall production may be lower due to a three-month gap in ore supply and processing plant capacity constraints.

CEO's Comments

Core's Chief Executive Officer, Gareth Manderson, highlighted the successful production and sale of spodumene concentrate during the quarter. He emphasized the ongoing efforts to improve mining rates, recoveries, and commercialize fines products. The revised feasibility study for the BP33 project remains on track for a Final Investment Decision in 1Q 2024. Core's focus on safety and sustainability includes adopting the Critical Risk Management (CRM) program and engaging with local community groups through the Community Grants Program.

Operations:

• Mining performance remained below expected levels due to weather and adjustments in the mine design.
• Processing plant ran for 14 weeks, achieving concentrate grades between 5.35% and 5.6%, but recoveries were lower than anticipated.
• Various improvement projects are underway to increase lithia recoveries and minimize fines.
• FY24 guidance includes the potential sale of fines material and C1 costs of AU$1,165 to AU$1,250 per tonne.

FY25 Production Outlook:

• Monthly mining and processing rates expected to exceed FY24 levels.
• Overall production may be lower due to ore supply gaps and processing plant constraints.
• Core is evaluating options to optimize production, considering increased ROM pad stockpile, DMS plant throughput, and DSO sales.

Non-Cash Adjustments

• Grants open pit strip ratio remains high in FY24, resulting in non-cash deferred stripping costs of AU$45-50 million.
• Mining cash costs expected to be lower in FY25 with access to ore at a lower stripping ratio.

Core Lithium is making significant progress in its operations and growth plans, aiming to become a major player in the lithium market, supporting the global transition to cleaner energy solutions.

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