Core Lithium repositions Finniss project as long-life, low-cost global contender

New study results confirming its global competitiveness have boosted Core Lithium’s (ASX: CXO) confidence in its Finniss lithium project near Darwin.

Core believes the study outcomes have repositioned Finniss as a highly attractive, low-cost operation with a 20-year life.

The report also reinforced the company’s production plan – with 94% of the first 10 years backed by its significant ore reserves – and supported Core’s underground mining strategy targeting the project’s high-grade orebodies.

Unwavering belief

“Our team has always believed in the opportunity at Finniss and I’m pleased to share the restart study with the market today,” chief executive officer Paul Brown said.

“The plan we’ve outlined capitalises on the project’s strengths, including established infrastructure, high-grade ore bodies well suited to low-cost underground mining and a process plant with proven recoveries and further scope for optimisation.”

“We’ve undertaken a rigorous, bottom-up review of every aspect of the operation—the study brings together our operating experience to deliver a plan that is more robust, more efficient and built for the long term.”

Plant upgrades identified

The new study identified plant upgrades – including enhanced screening, more affordable crushing and the addition of a gravity circuit – designed to improve recovery and reduce contaminants while keeping capital costs low.

“This resets Finniss as a more resilient operation to price volatility, and will be a reliable source of high-quality, coarse-grained spodumene concentrate,” Mr Brown said.

“The study outlines a lower-cost, longer-life and scalable operating plan that generates free cash flow of $1.2 billion, representing a sixfold return on pre-production capital.”

“Core has identified a range of opportunities and is considering multiple funding pathways—our focus is to secure an option that minimises dilution and maximises value for shareholders.”

Yahua offtake termination

The release of the study news comes just days after Core announced it had terminated a legacy offtake agreement with the Yahua Group, the world’s fifth-ranked supplier of lithium hydroperoxide.

As part of the settlement, Core has agreed to pay Yahua approximately $3 million in cash.

“We appreciate the constructive approach of Yahua in reaching this agreement, which reflects the long relationship between our two companies,” Mr Brown said.

“The settlement of this legacy offtake agreement provides greater scope and opportunity for securing strategic funding sources to support a future restart of the Finniss lithium operation.”