PERTH (miningweekly.com) – Lithium miner Core Lithium has marked its first full-year profit since the start of production at its Finniss lithium project, in the Northern Territory, in March this year.
The ASX-listed company on Friday reported a maiden revenue of A$50.6-million and an earnings before interest, taxes, depreciation and amortisation of A$14-million, marking a net profit after tax of A$10.8-million and an operating cash flow of A$90.8-million.
Core produced 18 274 t of spodumene concentrate in the period under review, with recoveries 48% lower than predicted by the 2021 definitive feasibility study test work, as a greater proportion of fines were reported to tailings than expected.
The company has undertaken process optimisation trials to improve recoveries and has initiated a sale of lithium fines product to customers.
“In the second half of the 2023 financial year, Core achieved first revenue, completed construction at Finniss and commenced production and sales of spodumene concentrate,” said CEO Gareth Manderson.
“Delivering a maiden profit in the first year is a significant achievement and a testament to the strategy to move quickly to production in a strong pricing environment.
“Core generated operating cash flows of A$90.8-million, remains debt free and had a cash balance of A$153-million at year-end. This reflected direct shipping ore sales and spodumene concentrate sales from the operation. This does, however, not include the sales receipts recognised after the reporting date, nor the A$111.4-million raised in the recently completed institutional placement and share purchase plan.”
Manderson told shareholders that the company’s balance sheet and the strategic capital allocation for operations improvement, development, and exploration programmes would provide the foundations for the company to realise its growth ambitions in the financial year ahead.
“The 2024 financial year guidance, provided following Core’s first months in operation, establishes the baseline of operational performance from which to build and work on safely improving plant recoveries and mine productivity as our top priority.
“The 2023 financial and operation performance provides a quality foundation for delivering our growth plans in 2024. Early works and the updated feasibility study at BP33, Finniss’ potential cornerstone asset, are progressing well and the project is on track for final investment decision in the March quarter,” said Manderson.
“While the breadth and scope of the work at Finniss has expanded significantly, our strategy to drive long-term shareholder value is unchanged – ramp up Grants production and deliver spodumene concentrate into long-term offtake agreements, grow the broader Finniss district mine life through the development of deposits in the region near the established processing infrastructure and pursue longer-term growth initiatives through our exploration programme.”
Looking at 2024, Core is targeting a production of between 80 000 t and 90 000 t, at a C1 costs of between A$1 165/t and A$1 250/t.