Australia's Core Lithium rises; Macquarie cuts earnings estimate on operations halt

Core Lithium

12/01/2024 01:42

** Analysts at Macquarie lower earnings estimate for Core
Lithium  CXO.AX  on production suspensions and other adjustments
to mining and cost assumptions 
    ** Shares of CXO rise as much as 5.1% to A$0.205
    ** The lithium miner suspended mining activities at Grants
open pit at Finniss project in light of soft lithium prices 
    ** Co expects to record an impairment of carrying value in
first half
    ** Broker changes estimates by "2-174% EPS reductions in
FY24-FY26 and 42-43% EPS reductions in FY27-29" 
    ** Cuts PT by 38% to A$0.20 and maintains "neutral" rating
    ** Three of 10 analysts rate the stock "hold" and seven
"sell" or lower; their median PT is A$0.21 – LSEG data
    ** Stock dropped 75.6% in 2023, snapping a three-year
gaining streak 

 (Reporting by Sneha Kumar in Bengaluru)
 ((Sneha.Kumar@thomsonreuters.com;))