Funding Uncertainty Looms as Core Lithium Plans $200M Finniss Restart

A New Chapter for Finniss

Core Lithium Ltd has released the results of its comprehensive Restart Study for the Finniss Lithium Operation in the Northern Territory, signaling a strategic pivot to underground mining that promises a robust 20-year mine life. This study not only reaffirms the project's long-term viability but also highlights substantial operational efficiencies and cost savings that position Finniss as one of the most competitive spodumene producers globally.

Operational Optimisation and Cost Efficiency

The study reveals a 40% reduction in mining costs, bringing expenses down to between AUD 63 and 72 per tonne, while processing costs have been trimmed by 33% to a range of AUD 40 to 46 per tonne. These savings stem from a shift to underground mining methods at the Grants and BP33 deposits, which reduce waste and dilution, combined with plant optimisations such as a simplified flowsheet, increased throughput to 1.2 million tonnes per annum, and the addition of a gravity separation circuit to recover ultra-fine lithium particles.

Importantly, the processing plant and infrastructure are transitioning to full ownership by Core Lithium, granting the company greater operational control and flexibility. The concentrate production is projected to increase by 7%, reaching approximately 205,000 tonnes per annum of SC6 equivalent spodumene concentrate, a high-quality product favored in lithium markets.

Financial Strength and Funding Strategy

Capital expenditure requirements have been significantly reduced, with pre-production capital costs lowered by 29% to between AUD 175 million and 200 million. The study forecasts a strong free cash flow of around AUD 1.2 billion, underscoring the financial robustness of the reconfigured operation. Core Lithium has appointed Morgan Stanley Australia Limited to lead a strategic funding process aimed at securing capital with minimal dilution to shareholders. The Final Investment Decision remains contingent on Board approval and securing suitable funding pathways amid prevailing market conditions.

Resource Base and Growth Potential

The updated Ore Reserves stand at 10.7 million tonnes at 1.29% lithium oxide, supported by Mineral Resources totaling 48.2 million tonnes at 1.26% lithium oxide. The study incorporates a high-confidence production plan with 94% of the first decade’s feed sourced from Ore Reserves. Additionally, exploration targets at the Blackbeard and BP33 Deeps prospects offer upside potential for mine life extension and production growth, which Core Lithium is actively pursuing.

Environmental and Regulatory Readiness

All necessary environmental and regulatory approvals are in place, with infrastructure largely established and only targeted upgrades required to support the restart. The operation benefits from proximity to Darwin and existing transport and power infrastructure, facilitating efficient logistics and operational continuity. Core Lithium also emphasizes its commitment to environmental stewardship and collaboration with the Northern Territory Government.