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

Core Lithium

12/01/2024 03:50

(Updates share moves, weekly milestone)
    ** Shares of Core Lithium  CXO.AX  jump as much as 10.3% to
A$0.125, set to gain most since Dec 20, if trend holds 
    ** Stock is, however, on track to drop for a fourth
consecutive week
    ** Last week, 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
    ** Analysts at Macquarie lower earnings estimate for on
production suspensions and other adjustments to mining and cost
assumptions 
    ** 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
    ** Stock dropped 75.6% in 2023, snapping a three-year
gaining streak 

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