Australia's Core Lithium jumps most since Jan 2021 on maiden annual profit

Core Lithium

29/09/2023 04:00

Sept 29 (Reuters) - Shares in lithium miner Core Lithium
 CXO.AX  jumped more than 25% on Friday, set for their best day
since January 2021 after the miner posted its maiden profitable
annual results.
    The company recorded a net profit after tax (NPAT) of A$10.8
million ($6.96 million), underpinned by the sale of first
lithium products in the second half of the year.
    The miner owns and operates Finniss Lithium project, located
in the Northern Territory, and lies within a prospective area
for lithium.
    Starting the ore mining process at Finniss in October 2022,
Core Lithium, produced a total of 18,274 metric tons of
spodumene concentrate during the year, and shipped 5,423 tons of
it.
    During the year, the company also announced a 62% increase
in the total Finniss mineral resource estimate, highlighting
strong potential for life of mine extensions at the project.
    "The FY23 financial and operation performance provides a
quality foundation for delivering our growth plans in 2024,"
said CEO Gareth Manderson.
    Demand for spodumene, or lithium ore, from the electric
vehicle battery industry is expected to boom this decade as the
green energy transition gains momentum.
    The company is in agreements with U.S. electric car maker
Tesla and Chinese chemicals firm Sichuan Yahua Industrial Group,
to supply spodumene.
    The miner's revenue came in at A$50.6 million, where first
cargo of spodumene concentrate in May generated revenue of
A$30.5 million. 
    Core Lithium's shares were up 25.7% at A$0.43 at 0236 GMT,
and were set for best day since January 20, 2021.
    

($1 = 1.5521 Australian dollars)

 (Reporting by Ayushman Ojha; Editing by Rashmi Aich)
 ((Ayushman.Ojha@thomsonreuters.com;))